Prospects brighten for world uranium producers

Since the beginning of 1995, uranium spot market prices have risen by more than 67%. This has been due to supply related factors and might have been greater if world nuclear power projections had not shown virtually zero growth over the next few decades except in the Far East. Perceptions of a looming supply shortfall have been created by rapidly declining inventories, western mine production being able to meet only half of plant requirements, constraints on access to CIS supplies in the future and considerably less than anticipated uranium-equivalent supply from nuclear weapons material. Data on projected world supply and demand balances are presented. On the supply side this includes all primary production and inventories of all forms. A supply deficit of 5 million 1b, U3O8 by 2010 is shown. Trade constraints, weapons stockpiles and laser enrichment, which are the most important factors affecting both the near- and longer-term uranium markets, are discussed. (UK)