Greg Wajda opines on which driver of Uranium will be the next to strike. It appears the momentum of the Kazakhstan production cut announcement gave Uranium has faded. What is left to continue the rally? Wajda considers the possible upcoming catalysts for Uranium to be ... 1. Japan reactor restart 2. Russian/other state production cuts 3. China/India/US reactor announcements/starts/progression 4. Momentum from the stock/financial side Regardless of the economics, the fundamentals of Japan energy dependency on imported fuels, the restarting of Japan nuclear reactors is mostly political and news driven. Many biased, and unfounded, stories like the recent one stating that Fukushima had extremely high levels of radiation will further intensify the opposition to reactor restarts and lower the political will do so. Japan has 42 nuclear reactors. Only 2 are operational. 2 more were restarted and then halted by a court injunction.
But Japan Institute of Energy thinks 7 reactors will be online by the end of March 2017 and another 19 by March 2018. Any good news in this area may improve sentiment and bullishness on the industry even if it takes awhile to have a real impact on supply and demand. The Japanese utilities have a large amount of uranium stored as they were forced to take deliveries of Uranium they were unable to use since Fukushima. just last week entered into a contract dispute with TEPCO as they refused a delivery in violation of their contract. Among the many people and issues standing in the way includes this man, governor of a local prefecture that hosts some of TEPCO reactors.
While not producing anywhere near the Uranium that world leader Kazakhstan does, Russia does play an important part. They have a few mines going and room to expand production and discover new ones if they so choose. They also have been an important part of the Uranium over supply as they have been using old weapons to add to the supply.
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