Uranium - price stability seen emerging

The nuclear fuels industry, which reached a peak during the last decade in 1980, has been jolted by a rash of nuclear plant cancellations, tumbling uranium prices and overproduction. In Canada, a uranium oversupply problem of almost 80 million lb. U3O8 in excess of what is consumed and exported, is forecast by 1991. The global uranium industry, which has weathered a difficult two years, now appears to be in the latter stage of a major shakedown. It is believed that the next few years will see the industry search for market stability in order to avoid a recurrence of the recent boom-bust cycle. The improving price for U3O8 along with inventory redistribution via secondary markets is a sign that the worst could be over