Supply margins erode

摘要

Over the last eight years, a variety of events-including equipment malfunctions, environmental issues, labour disruptions, and a dispute with a key supplier to the conversion industry-have collectively impacted customer perceptions regarding prospects for reliable operation of production facilities for the conversion of uranium concentrate (U_3O_8) to uranium hexafluoride (UF_6) and the critical role of conversion services in the nuclear fuel supply chain. During this period the consensus evolved that primary conversion capacity must be expanded in order to meet the industry's gradually expanding needs for uranium conversion services because of the potential for diminishing availability of secondary supply and thin supply margins with respect to production capacity. The plant interruptions also highlighted the logistical issues associated with transport of conversion services supply, particularly between Europe and North America.