Now that France,Russia and the USA have completed the civil nuclear supply agreements with India the global supply and demand scenario is changing rapidly. It has been confirmed that Areva has agreed to supply 300 tonnes of uranium to India.
The uranium is to go to India's Nuclear Power Corporation and will be significant in easing the shortage of supply in India.India's reactors can now move back towards full capacity.
This deal, signed after changes to trade rules were made that allow India to participate in global nuclear markets, comes close on the heels of the agreement with Russia to supply uranium for the two reactors at Tarapur. (DeepLode has posted on this deal previously...)
India will continue to have an impact on the global supply capacity and as more reactors come on line globally (or even just on to the planning boards) sovereign states and power companies will begin to lock in future supplies. Production is lagging at the moment so the uranium price will come under pressure. And as DeepLode has already said Alliance Resources (ASX:AGS) is in the front row.