Stock market analyst Fat Prophets says uranium prices are likely to double by August 2011.
Fat Prophets calls a 12-month price of uranium of US$100 per pound, and US$60 by December 2010. The TradeTech uranium spot price was $46.75 per pound on 3 September.
Fat Prophets’ managing director, Greg Smith says the price rise will be driven by China's ongoing adoption of reactors and the run up to what the company believes to be a massive global demand for nuclear power.
The spot uranium market has been extremely active since the end of August, with eight transactions concluded during the first three days of September, according to TradeTech.
“With over 30 million pounds U3O8 already sold in the spot market this year, many sellers have met their sales goals for 2010 and spot supply available for immediate delivery is relatively thin,” TradeTech said 3 September.
Adding, ”As a result, several buyers are extending their time horizon for delivery into the first quarter of 2011.”