Uranium suppliers forced to cut production due to lack of demand

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To match Interview KAZAKHSTAN-URANIUM/

Uranium prices are being dramatically affected by the shutdown of nuclear reactors in the wake of the Fukushima Daiichi nuclear disaster as supply overwhelms demand.

Japanese nuclear power plants have been kept offline much longer than the nuclear industry first projected, and the shutdown has lead to a prolonged overage of uranium that has helped drop the bottom out of the market.

The Japanese government has repeatedly reiterated its’ promise to restart nuclear reactors in Japan, despite the public opposition, but Japanese utilities are unsure of when or if they will be able to restart their reactors.  All nuclear reactors in Japan have been shut down since September 2013.

The unexpected drought has also led uranium mines in Australia and Africa to close down due to unprofitability.

According to UBS the marginal cost of production of uranium is $35 per pound.  On May 14th, 2014, uranium prices dropped to $28.40 USD a pound, the lowest since June 2005.

Average Price of Uranium Per Pound

2014 $33.93
2013 $38.47
2012 $48.90
2011 $66.50
2010 $46.27
2007 $135
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