If a supply defecit is projected for 2014 ( 11 months...

If a supply defecit is projected for 2014 ( 11 months away)consumers of Uranium won't be waiting for Santa to put their order in ??

Uranium Outlook

We may even see the occasional BOT and basher trying to get cheap PDN stock LOL !

aboveground uranium supply deficit expected in 2014

While it’s clear that the demand side of the uranium market will see significant growth in the years ahead, what’s still uncertain is how the market will supply that demand.

The not-so-stellar performance of the U3O8 spot price and the political fallout post-Fukushima have severely depressed share prices for the entire uranium sector, from explorers to producers. As a result, many companies have had to shelve crucial development and expansion projects — that topic has been covered extensively this year by Uranium Investing News.

Industry leaders have said it will take U3O8 spot prices of at least $70/lb to $80/lb for projects like Olympic Dam, Langer Heinrich, Kintyre and Cigar Lake to become economical once again. High-profile expansion and production deferrals coupled with the end of the HEU agreement this year have the potential to create a significantly tight market in the medium term. That could lead to a rebound in spot prices as early as the second half of 2013.

Spot price forecasts

Investors should continue to keep an eye on Japan as any real improvement in the market isn’t expected until the nation’s newly elected leaders show they’re serious about restoring its nuclear power program — once responsible for about 10 percent of global uranium demand.

Analysts expect demand to start to exceed supply in 2014. In late 2013 or early 2014, we may begin to see the current spot price more in step with the strong long-term price ($60/lb), Dennis da Silva, a resource fund manager at Middlefield Capital, told the Financial Post. UBS (NYSE:UBS) is looking for prices to return to $50/lb in 2013 and $55/lb in 2014, while Credit Suisse (NYSE:CS) has issued a much more bullish outlook, indicating that uranium should trade in a range of $80/lb to $90/lb for 2013. JP Morgan, equally bullish, anticipates a range of $78/lb to $85/lb.

Uranium stocks

Uranium mining stocks have taken a serious beating over the past few years, and 2012 was no different. The Global X Uranium ETF (ARCA:URA) — which includes industry heavies such as Cameco (TSX:CCO,NYSE:CCJ), Paladin Energy (TSX:PDN,ASX:PDN), Uranium One (TSX:UUU) and Denison Mines (TSX:DML,AMEX:DNN) — finished the year down nearly 20 percent.