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China uranium demand seen doubling by 2020 but prices to stay depressed

Published 11/07/2016, 10:57 AM
Updated 11/07/2016, 10:57 AM
China uranium demand seen doubling by 2020 but prices to stay depressed
  • Chinese demand for uranium is expected to nearly double to 9,800 metric tons/year by 2020 from the end of 2015, although a supply glut will continue to keep prices depressed, says the head of a unit of state-owned China National Nuclear Corp.
  • China is in the middle of a nuclear reactor building program and aims to have 58 GW of capacity in full commercial operation by the end of 2020, up from 30.7 GW at the end of July, but the executive says only ~53 GW of capacity would be online as not enough construction of nuclear plants had already begun.
  • Uranium is trading at ~$18.75/lb., down from $67 before Japan's Fukushima disaster in 2011.
  • Relevant stocks include CCJ, DNN, LEU, URRE, UEC, URG, UUUU.
  • ETFs: URA, NLR

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