RE:Uranium usageThanks kermodi1. I do not think it is practical to talk in terms of oversupply or undersupply since in this market they don't have much meaning. Preciousminingguy has a good take on it in his earlier post. Nearly all the Uranium sold is sold into long term contracts...so spot price is almost meaningless as a price indicator...not really sure why we are all so fixated on it. What I think matters more is when the long term contracts start to roll off and utilities develop uncovered requirements. Thos FUTURE requirements are either supplied from spot market (nowhere near enough volume to do that by the way) or they are supplied through renegotiation of long term contracts. Contracts started to roll off last year and that will accelerate in 2017, 2018 and 2019. It is most certainly the case that companies like Cameco are going to want prices that at least compensate them for the billions of dollars invested in mines and equipment and to counter the tough times they have been experiencing and that is going to be at least $70/lb U3O8. So the market to watch is the term market and the settling of long term contracts to replace those that have or are soon to be expired.
Interesting times ahead.
Malcolm