This latest draft of the energy policy is the government's strongest effort so far to revive its nuclear energy program. Though no specific nuclear targets have be set in Japan's policy, the plan indicates that the country will continue with its nuclear fuel recycling policy, while also emphasizing a need for flexibility should changes to the policy be required in the future.A seller's market on the horizon For some time now, uranium market watchers have been waiting for Japan to declare an "all systems go" with regards to firing up its reactors. Once this even happens, the feeling is that the overhanging uranium supply currently flooding the market will start to be chipped away. The end result of course, is expected to be extremely positive to the uranium market, with sellers finally able to start selling their product for higher prices, and buyers biting the bullet and paying more for the coveted energy fuel. "I think it's an incredibly important announcement," Cantor Fitzgerald analyst Rob Chang told Uranium Investing News in a phone interview. "There have been some people in the market that did not believe that Japan was going to turn their reactors back on and I think that this puts that question to bed." "The government strongly noted that not only is nuclear it going to be an important part of their power mix, they will be pushing their reactors to be restarted they even hinted towards potential building even more reactors." Chang said, :"I think it's a very positive note. It certainly does remove that overhang in the market, and it will at least slow down the buildup of uranium inventories with the reactors being turned." Overall, Chang sees the latest news from Japan as potentially being the kicking off point that the uranium market has been looking for noting that sellers are growing increasingly reluctant to let product go for lower prices with.
"I think that the prices will move, but it really just depends when the buyers are willing to bite the bullet and start bidding up for it because the producers/holders of uranium are now stepping back and waiting for the price to come to them, and I think that is a good sign."Nuclear Key for Japan's Energy Sector, Plans Reactor Restarts from Uranium Investing News