Long-Term Uranium Prices Finally Turns Up

Long-Term Uranium Prices Finally Turns Up

The Financial Post reports that for the first time since the Fukushima disaster, the long-term price of uranium has finally turned up.

According to trade publication Ux Consulting, the term price rose to US$61.50 a pound this week, up 2.5% from US$60.00. Ux’s long-term price covers material that will be delivered more than two years in the future.

While there have been some minor upticks in the spot price since Fukushima, this is the first time that the term price went up since January of 2011, when the outlook for uranium was much stronger than it is today.

Uranium miner ETF URA – which we have, sadly, been highlighting since pre-Fukushima – is finally starting to turn up as well:

URA uranium ETF stock price chartURA’s decline may have finally exhausted itself. (via StockCharts.com)

Cameco’s chart is actually starting to shape up quite interesting.  If the current low holds, it’d be the first “higher low” for CCJ since Fukushima.

Cameco CCJ Stock Price ChartCameco attempts to put in a “higher low”. (via StockCharts.com)

While it’s too early to declare a bottom in uranium, NBA commentator Marv Albert might quip that the other yellow metal is “showing some signs.”

There are a lot of challenges facing uranium – not only the safety concerns, but also the US having a lot of cheap coal and natural gas available for the foreseeable future.  But the charts are starting to look interesting, and there’s a lot of potential money to be made here if uranium’s situation goes from bad to slightly less bad.