When an earthquake and a tsunami hit Japan’s Fukushima Daiichi nuclear-power plant in 2011 causing a meltdown, the price of uranium plummeted. Now that’s set to change, Bloomberg reports.
Although nations like Japan and Germany are shifting away from nuclear power and have closed down a number of nuclear-power plants, emerging nuclear markets in China and other countries will cause a spike in demand likely to send prices soaring.
“New nuclear plants will significantly boost demand in coming years, even taking into account the phasing out of German plants,” said Olivier Wantz of Areva SA, the second-biggest producer of uranium in the world. “We see first a stabilization of prices, with the start of a pick-up as soon as 2014.”