spot price 51.50/lb, page-5

Softer uranium price foreseen (02/07)

CASPER, Wyoming. ? In the wake of Japan's nuclear disaster, the Sydney, Australia-based market analysis firm Resource Capital Research expects uranium prices to fall further in coming months.

From about $54, the firm expects a spot price of about $48 over the next three to six months. The lower price reflects expectations that new supplies will enter the market in the second half of 2011 and uncertainly over "potential Japanese utility surplus dispositions."

Before the Japanese earthquake and tsunami on March 11, the uranium spot price was $67.75, a 12-month high. The natural disaster resulted in damage and a partial meltdown at the Fukushima nuclear plant.

At the same time, Resource Capital Research noted that the long-term contract price for uranium is relatively stable. It was $68 per pound on May 31, down from $73 per pound on February 28.

"Despite the short-term market impact of Japan, the long-term uranium market fundamentals are considered sound with expected strong and increasing demand for new nuclear power reactors, especially from China, USA, Russia, Ukraine and India," the firm reported.

Germany, on the other hand, has announced it will close all 17 of its nuclear reactors by 2022. The actions makes Germany the largest industrial country to turn away from nuclear energy.

Read more: http://billingsgazette.com/news/state-and-regional/wyoming/article_67213289-7f5f-535f-bf80-c8b1949cf7b0.html#ixzz1RCTp96Sg

NYMEX Futures:

NYMEX Uranium (U3O8) Settles
USD/LB
Month 04 Jul 01 Jul +/-
Jul 11 52.40 51.65 .75
Aug 11 52.40 51.65 .75
Sep 11 52.40 51.65 .75
Oct 11 52.40 51.90 .50
Nov 11 52.40 52.15 .25
Dec 11 52.40 52.40 0