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Jerusalem, Israel, 2011/07/20 - Ritter Group and market analysts’ notes that China, India and South Korea are maintaining their nuclear build plans while Saudi Arabia, the United Arab Emirates, Turkey and Vietnam have announced new nuclear plans as well - RitterGroup.com.
Uranium prices slumped in the wake of the events that occurred earlier this year, but it looks like any price weakness in 2011 will be short-lived as the demand for electricity continues to grow.
Ritter Group and market analysts’ notes that China, India and South Korea are maintaining their nuclear build plans while Saudi Arabia, the United Arab Emirates, Turkey and Vietnam have announced new nuclear plans as well.
The market will begin to recover and expand in 2012 as the recent events become less of a driving force and the supply-demand fundamentals re-assert themselves. There is not enough uranium production, either current or planned, to satisfy reactor needs, initial core requirements and inventories for new reactors. A sustainably higher price, increase in production, and increase in investors should help resolve this gap.
Market analysts forecasts uranium prices to be range-bound at less than US$60 a pound for the rest of 2011 and may even drop below US$50 a pound depending on what Japanese utilities do with scheduled deliveries for the remainder of the year.
Ritter Group foresees uranium demand growing by an average of 4% per year through 2014. Even with significant changes made to our demand forecast, we continue to forecast very large deficits.
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