NewswireToday - /newswire/ -
Sarasota, FL, United States, 2006/05/03 - In the face of Asian competition and possible supply shocks to the uranium market, UxC president Jeff Combs urges U.S. utilities to “support the expansion of production in the United States.”.
Ux Consulting President Jeff Combs told StockInterview.com to expect higher uranium prices during the rest of 2006 and through most of this decade, “I think there’s a good chance that we’ll see $50 per pound uranium this year, more likely in terms of long term contracts. I think the highest prices may be reached within the next couple of years.
I think that’s when supply will be the tightest.” How high does Combs think uranium prices could go? “In the high case, which would be the most dramatic spike, I would say it would be somewhere in the $60 - $70 range,” Combs said. “Price certainly could be higher than this if the wheels come off the wagon. I think you’re definitely looking at price going into the $50s. It’s not too difficult to see a scenario where price goes into the $60s.”
Combs also warned domestic utilities, “U.S. utilities should support the expansion of production in the United States, in addition to maintaining their supply channels to major uranium producing countries.”
He added that U.S. utilities should also “promote domestic production.” Combs believes utilities are not taking the supply crunch seriously, “I still believe that some utilities may be putting too much faith in current prices in that they believe that the now higher prices will take care of the problem of future supplies.”
Combs fired a warning shot to those utilities that may be holding out for a better price, “Until production expands more, any shock to supply could send prices much, much higher.”
Rising uranium prices have begun attracting investors, some of whom weekly follow changes in the spot uranium price by visiting the UxC website. StockInterview.com interviewed Jeff Combs, president of UxC, which posts the spot uranium price to the public every Tuesday night.