http://uraniuminvestingnews.com/18054/uranium-participation-makes...

http://uraniuminvestingnews.com/18054/uranium-participation-makes-first-uranium-purchase-in-four-years.html

UPC’s uranium purchase could not have come at a better time. As Sadowski highlighted in his note, uranium spot prices touched down at $33.88 per pound according to UxC’s daily average price chart on Friday, marking the first time in more than eight years that spot prices have dipped lower than the $34 per pound support level. The lower price environment has provided UPC with a prime opportunity to reduce its average purchase cost, as well as take a further chunk of excess uranium off the market. Assuming UPC does make another purchase in the short term, Sadowski estimates that a 1.7 million pound uranium purchase (850, 000 pounds bought so far, plus another 850,000 pounds in the future), would cut the forecasted 2014 over supply estimate to roughly 7 million pounds.

Overall, UPC purchasing uranium combined with mine shut downs only help to take a small edge over the overarching problem of an oversupplied uranium market, which can account for the continued weakness in uranium prices. With the expectation that Japan will restart its reactors in the near future contributing to further alleviate the oversupply, the firm sees upward pressure on prices in the future that could lend support to bring new, desperately needed, mines online.