Chart of the week: Uranium is set for a rebound

Uranium price chart

Uranium prices fell by two-thirds between the Fukushima nuclear disaster in 2011 and the middle of last year. But the bounce since mid-2014 could be the start of a rebound, reckons Wirtschaftswoche, a German news magazine.

The World Nuclear Association expects demand for nuclear energy to climb by a third by 2030 as countries build more reactors to meet the need for more electricity. There are 438 active reactors worldwide, with 69 being built and another 184 planned.

The uranium bull market of the early 2000s gave production a hefty fillip, but the increase has not been big enough to close the gap with demand from power stations. And now the gap looks set to grow.

The bear market of the past three years dampened exploration and the supply squeeze has had to be alleviated with uranium from secondary sources such as spent fuel rods. One way to gain exposure is through Canada-based miner Cameco Corporation (NYSE: CCJ).