International Uranium Market

Abstract

Persons not directly involved in the uranium industry are puzzled by what they see in the market today, and frequently ask similar questions:

• Why is it that western uranium production is only half of the western reactor requirements?
• With production at such a low level, why is the spot market price so low, and when will it rise again?

A contrary question is often asked by the anti-uranium lobby:

• With such a weak uranium market, how can the producers contemplate building more production facilities? Wouldn't their additional output merely serve to keep prices low?

The questions are straight-forward, but the answers require an understanding of the complexity of the international uranium market. This paper attempts to answer these questions in a manner is understandable to the "uninitiated," while at the same time putting forward a new analysis of the current market situation. It is hoped that the latter contribution will provide some "food for thought" for those within the industry.