#Uranium Market Update in a nutshell🥜 #U3O8 continues to be a best performing commodity of 2020, up 25% YTD, up 69% from its bottom in November 2016.🐂📈 #Nuclear power growth remains robust ⚛️🏗️↗️ Demand at 182M lbs/yr & rising, Supply deficit ~60M lbs, -317M lbs by 2026⛏️⏬🗜️
#Uranium has strong #bullish outlook 🐂🔮 #Nuclear utility contracting has been below normal for past 8 yrs. Re-stocking cycle overdue with growing uncovered demand & delayed Long-term contracting since 2012.⌛️
With such strong #Uranium supply/demand fundamentals, why is #U3O8 market rebalance taking so long? 🤔 Trade Issues, Russian Suspension Agreement, #COVID19 have sidelined #nuclear utilities BUT trade issues nearing resolution, utilities getting back to work, #China going all-in🏗️
Secondary Supplies have been holding back #Uranium price response.🌧️ But inventory drawdown has accelerated, #Japan restarts coming, Kazatomprom has abandoned Spot #U3O8 market sales, Carry trades harder to execute.🐂 #Nuclear getting #CarbonFree #GreenEnergy & #SMR boost.🌞⚛️↗️
With #Uranium mines shutting down in #Niger & #Australia next year, while #Nuclear fuel demand rises ↕️ there is a growing "Market Appetite" for new #U3O8 mines to fill supply gap.⛏️ But, U price too low to stimulate new production... needs to double to bring new mines online💲⏫
Current #Uranium Market can be described as a Spring Coiling Ever Tighter🗜️ - Whether it 'Pops' not a question of 'If' but 'When?' ⌛️⤴️ #Nuclear demand robust & growing, falling production accelerating market rebalancing, re-stocking cycle delayed & looming, new mines needed.🐂🚀
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