The long and the short of it

Journal Article · Sun Apr 01 04:00:00 EDT 1990 · NUEXCO. Monthly Report to the Nuclear Industry

OSTI ID:103471

If asked to characterize the current uranium market, a few of the words that come to mind, depending on one`s role in the market and point of view, include {open_quotes}DISASTROUS,{close_quotes} {open_quotes}EXCITING,{close_quotes} {open_quotes}WORRISOME,{close_quotes} and {open_quotes}OPPORTUNE.{close_quotes} Looking at that market, I see is dominated the following interrelated factors: (1) Record large quantities of uranium are being bought and sold in the spot market, with perhaps equally large, additional quantities being delivered at spot prices under long-term contracts. (2) Structural changes are occurring in both the long-term uranium market and the uranium production sector. (3) Brokers, traders and other intermediaries are becoming increasingly active in the marketplace. (4) The NUEXCO Exchange Value and other spot market price indicators are at all-time lows. It is my contention, however, that the current state of affairs in the uranium market is the logical and inevitable economic result of past excesses, primarily the buildup, during the late 1970s and early 1980s, of huge inventories. Today there is still substantial excess inventory in the system, and, until this inventory is absorbed, either prospectively or in fact, uranium prices will remain under pressure.

• OSTI ID: 103471
• Journal Information: NUEXCO. Monthly Report to the Nuclear Industry, Journal Name: NUEXCO. Monthly Report to the Nuclear Industry Journal Issue: 260; ISSN 0742-4582; ISSN NUEXD3
• Country of Publication: United States
• Language: English

Related Subjects

05 NUCLEAR FUELS
INVENTORIES
PRICES
PRODUCTION
SPOT MARKET
SUPPLY AND DEMAND
URANIUM