RE:Now is the Time to Buy Uranium - Mickey Fulp Mickey Fulp on Uranium:
“I bought all my uranium stocks quite awhile ago,” he said. “I can’t tell you when it’s going to come, but there will be a uranium shortage, there will be great demand, the price will go up; and stocks are very dependent on the spot price.”
Another area that is bound to impact the uranium sector is the forthcoming decision on the Section 232 petition, the US’ investigation into national security issues around foreign uranium imports.
“Section 232 is a proposal on national security issues that would require that 25 percent of the uranium used by the US utilities to make electricity be supplied by domestically mined uranium,” said Fulp.
While the move would be a much-needed “shot in the arm” for US producers and developers, it could potentially create domestic supply and demand issues for the US, which imports the majority of the uranium it uses each year.
Canadian uranium producers may also be affected, although it’s too early to tell how impactful the quota would be on America’s northern neighbor. There is also the potential for the US to implement a “friendly/ally exemption,” which could ultimately position Canada favorably in relation to the uranium market in the years to come. A decision is expected in April.