RE:RE:RE:RE:RE:RE:RE:RE:and those who pointThere is no way any one knows whether there is a surplus or not. However the Japanese took 10% of demand off the market and the Germans another 3 to 5%. So let's say 15% of demand vaporised in 2011. Production did not slow down until recently. So it sure looks like there is too much production for the demand. The question to ask is not whether there is a surplus NOW but whether there will be a surplus in the next few years. All indications are that will not be the case therefore one needs to position oneself for that eventuality. Every single day more than a reactor years worth of nuclear fuel is consumed by the worlds reactors and that number is increasing. Japan is restarting its fleet albeit very slowly. OHI-3 has just fuelled up with 193 fuel bundles. That means someone needs to make another 60 or 70 for their next refuel outage.
So supply is falling demand is increasing and inventory is being consumed. There is but one outcome of that and it is called a price increase to incentivise new production or restart existing production.
Simple economics at work and those that see it will be the winners in this game.
Malcolm