An Uranium Forecast For 2018

Uranium is considered one of the hardest commodities to forecast especially this year because of the uncertainty around the future of the sector. Our research team decided to take up the challenging task of building a Uranium forecast for 2018 or later.

For 2018, it’s all about Uranium Spot price. The spot price will be the game changer for both Uranium miners and the sector. We believe we will see the spot price start to rise in 2018 as nuclear reactors operators realize how uranium supplies will become more and more scarce.

Our Uranium forecast for 2018 will include the following:

  • Overview of the current state of the sector
  • Uranium’s current offer and demand dynamics
  • Spot price chart analysis in addition to URA and our Top 2 Uranium miners.

Before we dive into the fundamental data and charts, we would like to remind our readers that investing in Uranium and Uranium miners equities is very risky. There is a serious potential for loss if the timing is off. Therefore, we urge our readers to do their due diligence and make sure they research and know what they are investing in.

First, the Current State of the Uranium Sector

As shown by the chart below, Uranium spot price took a dive after a spike in 2007 to reach 136 USD. The spike was mostly due to a bidding war among reactors’ operators to secure long term contracts as the were concerned there might be a shortage in uranium supply.

Since then, many analysts have been trying to predict or call the bottom and today, the spot price is at 20 USD. Many companies didn’t survive hence our call for due diligence and managing risk.

(Click on image to enlarge)

Uranium spot price

Uranium Forecast 2018 : Supply and Demand Outlook for 2018

The most important factor impacting the demand will be new reactors coming online and existing reactors being recommissioned.

According to Cameco at press time, 56 nuclear reactors are currently under-construction with 19 in China.

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