United States Still Favors Nuclear Power

By Dave Brown — Exclusive to Uranium Investing News

United States Still Favors Nuclear Power

According to the results of Gallup's annual Environment survey, conducted earlier this month, the majority of Americans continue to favor nuclear energy as a source of electricity for the United States. The survey indicated that 57 percent of participants were in favor of nuclear power this year, the same amount as in 1994, the first year for th e survey. This year's results also demonstrate an equal level of support among participants as last year, just prior to the Japanese earthquake and tsunami. Support for the nuclear industry as measured by the survey has ranged from a low of 46 percent in 2001 to a high of 62 percent in 2010.

These results are of significance to investors as the US is the largest consumer of uranium in the world, with 104 operational nuclear reactors. Continued public support and confidence from the country should guide future political decisions and foster economic interest in domestic and international uranium resources as well as in nuclear industry stakeholders.

Uranium spot market prices

The uranium spot market price as reported by TradeTech remained at $51.00 per pound. The price stability overshadows two weeks of relatively dynamic activity in the spot uranium market, where ten transactions were reported. The majority of potential demand is focused on deliveries further into the future and has had little impact on current prices. Seven transactions concluded last week, compared with only three transactions reported this week.

Company news

Cameco Corp. (TSX: CCO,NYSE:CCJ) has offered to acquire uranium from Japanese utilities that are unable to operate the 53 nuclear power reactors that have been offline since last March. Japan's final operating reactor is scheduled to shut down in May, while stress test results are being reviewed by the country's nuclear regulator.

Cameco is confident that Japan will bring at least a portion of its fleet back online in the near future; however, a timeline has not been identified at this point. The Japanese Prime Minister is expected to instigate reactor operations based on positive safety results and political and public support.