There are 2 main groups of Uranium users: 1. Those with peaceful...

There are 2 main groups of Uranium users:
1. Those with peaceful purposes: nuclear reactors to provide power.

2. Those building weapons, be it missiles, navies or armies.

China is building a new navy and most of this would be nuclear powered. That requires quite a lot of Uranium.

Russia and the US are also manufacturing weapons. Russia is still supplying U to the US as per a long term contract. That runs out in 2010-2012. If the relationship deteriorates, then it may well be earlier.

Some other nations now want the security of nuclear weapons as well now Iran is building theirs.

All together, a sizable demand on Uranium to be used for defensive and aggressive purposes.

Reports mention that currently the demand is for 180 mill lbs of U on an annual basis. Production is 110 mill lbs and the shortfall comes mainly from dismantling weapons. However, as there is a large rebuilding in the military sector going on, there is a limit to how much of that 70 mill lbs shortfall can really be used for peaceful purposes.

Russia may decide not to sell too much uranium as they may want it themselves. In any case there is a time limit as to availability of this material.

Gerry
Readers, please do your own research and you decide if and when to buy, hold or sell any stocks or metals/commodities.