The Cantor uranium spot-price predictions for the next three years remain the same - US$50 in 2016, US$60 in 2017 and US$70 in 2018. According to Rob Chang, his firm confidence is rooted in uncovered requirements. Essentially, utilities will eventually have to start buying as reactors cannot operate without uranium. At some point, someone is going to have to jump in and buy and others will do the same, the spot market is so thin that it will show. Just like last year, when a few buyers came in it went from US$28 to the US$40 range really quickly, he said.
Reactor restarts in Japan were a topic of discussion recently, especially now that the first two reactors are expected to come online in less than two weeks. Chang said in his report that restarts will be the type of front page news that will spark investor interest in the space as well as dispel the still-existing notion that Japan will not return to nuclear energy.
At the same time, while the restarts will be positive from a market sentiment perspective, several reactors will have to restart in order to have any big impact on the supply and demand equation. Cantor expectations for restarts remain the same, with two expected in 2015, another five in 2016, seven in 2017 and a total of 36 reactors running in Japan by 2020.
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