Uranium prices could rise further with new auctions
Published June 12th, 2007
Two more uranium auctions this week could push uranium spot prices higher, after previous sales with bids due on May 30 and June 1 helped drive prices to US$135 per pound at Ux Consulting and US$138 at TradeTech.
Higher demand continues to be cited as the explanation for the near doubling of uranium prices this year, as the nuclear fuel continues to gain more traction as a clean energy source.
RBC Capital Markets boosted its average demand growth forecast for the metal to 3.8% annually for the next 25 years, up from a previous target of 2.2%, due to plans for more reactors to be built around the world.
“While the reactors will take many years to permit and build, we believe the demand for material could precede reactor commissioning by many years,” RBC analysts said in a research note.
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