Michael Bryant opines that natural uranium (U3O8), prices have soared to $138 per pound in mid-2007 and plunged to $18 per pound December of 2016. Now it is about $25 per pound. The March 11, 2011 Japanese earthquake and subsequent damage to plants created a massive oversupply of uranium and helped push the price of the metal lower. But will uranium recover? When? And how high can it go? Since uranium is primarily used for energy, he assumes that the value of uranium follows much like copper, meaning its value follows the inflation-adjusted price, AISC, and supply and demand. Below is the graph of swap futures sentiment prices of natural uranium (U3O8).
Since 2011, the futures price has been falling by about $7 per pound each year. It bottomed in December 2016, which was also the lowest since 2004. The futures price has bounced off that support line and could head up to the $35 resistance line. As of March 15, 2017, the futures price was $24.50 per pound. Read on, if available.
See URL: https://seekingalpha.com/article/4055170-uranium-spot-might-hit-51-54-2018
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