The uranium market, like all commodity markets, has a history of volatility, moving not only with the standard forces of supply and demand, but also to whims of geopolitics. It has also evolved particularities of its own in response to the unique nature and use of this material.
The only significant commercial use for uranium is to fuel nuclear reactors for the generation of electricity. There are 440 reactors operating worldwide, and a total of 60 new reactors that are under construction, with over 150 power reactors (with a total net capacity of some 172,000 MWe) planned and over 340 more proposed (as of August 2011).
Before uranium is ready for use as nuclear fuel in reactors, it must undergo a number of intermediary processing steps which are identified as the front end of the nuclear fuel cycle: mining it (either underground or in open pit mines), milling it into yellowcake, enriching it and finally fuel fabrication to produce fuel assemblies or bundles. This technologically complicated and challenging process is simple in comparison to the complexity of the market that has evolved to provide these three services.
Read more about Uranium Market: Available Supply, Market Operations, The SWU (separative Work Unit), History
Famous quotes containing the word market:
“I respect not his labors, his farm where everything has its price, who would carry the landscape, who would carry his God, to market, if he could get anything for him; who goes to market for his god as it is; on whose farm nothing grows free, whose fields bear no crops, whose meadows no flowers, whose trees no fruit, but dollars; who loves not the beauty of his fruits, whose fruits are not ripe for him till they are turned to dollars. Give me the poverty that enjoys true wealth.”
—Henry David Thoreau (1817–1862)