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Short-term oversupply still weighing heavily on uranium price - analyst Justin Chan

Numis Securities analyst Justin Chan tells Proactive's Andrew Scott the cut in production by Kazakhstan - the world's top uranium producer - earlier this year did have an impact on the price - albeit temporarily.

''I think what has happened since then is that there hasn't been a fundamental change in the supply-demand dynamics in the short term ... so in the short term there is still an overhang of supply in the market'', Chan says.

He adds: ''Unfortunately the nuclear utilities haven't come back to the contracting market, so there hasn't really been secondary support for the Kazakh production cut''.

''Ultimately the uranium market remains in a situation where long term demand exceeds long term supply but the current situation is that there's more short term supply than demand'', he says.

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