Demand falls, While supply increases

Uranium production increases since Fukushima, creating an inevitable supply glut:

	Country	2006	2007	2008	2009	2010	2011	2012	2013
1	Kazakhstan	5279	6637	8521	14020	17803	19451	21317	22451
2	Canada	9862	9476	9000	10173	9783	9145	8999	9331
3	Australia	7593	8611	8430	7982	5900	5983	6991	6350
4	Niger (est)	3434	3153	3032	3243	4198	4351	4667	4518
5	Namibia	3067	2879	4366	4626	4496	3258	4495	4323
6	Russia	3262	3413	3521	3564	3562	2993	2872	3135
7	Uzbekistan (est)	2260	2320	2338	2429	2400	2500	2400	2400
8	USA	1672	1654	1430	1453	1660	1537	1596	1792
9	China (est)	750	712	769	750	827	885	1500	1500
10	Malawi				104	670	846	1101	1132
11	Ukraine	800	846	800	840	850	890	960	922
12	South Africa	534	539	655	563	583	582	465	531
13	India (est)	177	270	271	290	400	400	385	385
14	Brazil	190	299	330	345	148	265	231	231
15	Czech Republic	359	306	263	258	254	229	228	215
16	Romania (est)	90	77	77	75	77	77	90	77
17	Pakistan (est)	45	45	45	50	45	45	45	45
18	Germany	65	41			8	51	50	27
19	France	5	4	5	8	7	6	3	5
20	Total world	39 444	41 282	43 764	50 772	53 671	53 493	58 394	59,370
21	tonnes U3O8	46 516	48 683	51 611	59 875	63 295	63 084	68 864	70,015
22	percentage of world demand*	63%	64%	68%	78%	78%	85%	86%	92%

Even after Fukushima and the resulting decrease in the demand for Uranium, global uranium production has continued to increase. The spike in U prices in 2007 stimulated many companies to start digging, the only problem is that it takes a long time to get a U mine operational. With the wheels already in motion, even with decreasing demand for U staring them in the face, supply from new mines continued to increase. This generated a supply glut. Japan is unlikely to need uranium for many years to come with so much U stockpiled. Germany currently get over 15% of their energy from nuclear but plan to eliminate it from their energy mix entirely by 2022. China will build about 8 nuclear plants a year for the next 5 years but this is a gradual drip on the global demand side, which will be easily catered for by suppliers. Further Cameco's Cigar lake has the capacity to cater to the entire nuclear demands of China to 2020. That's one mine, that hasn't even existed on the supply side until this year, catering for all of China's demand.

Just noticed the spot dropped a couple of dollars and thought I'd shed some light on the fundamental reasons that can really hold back U producers.