Japan appears to have come to the rational conclusion that they can not survive on high cost LNG to run their economy. A Reuters article published at 4:40am was titled "Japan approves energy plan reinstating nuclear power".
The headline is a bit misleading as makes it sound like Japan is ready again to go great guns on nuclear power, but the article details how they are trying to reduce dependence on nuclear and increase coal and hydro base load. However, if you read between the lines it is inescapable that Japan recognizes that they need some nuclear in the mix.
Right now as I understand it all 48 nuclear facilities are shuttered in Japan, but this does pave the way for reopening some of them. So if Japan restarts some of their reactors along with more than 60 reactors being built worldwide (including the US, China and Russia) on top of the 435 operational reactors demand for Uranium will increase going forward. The market in 2013 for uranium was out of balance to the supply side but has been moving back to demand beginning to out strip supply and when Japan comes on line with some of their reactors prices should get a boost as they are set on the margin in uranium. I believe we are getting near the turning point for uranium and we should begin to see prices firm and advance though not at the parabolic rates of a couple years ago. I can foresee a steady upward march lasting probably through 2015 possibly longer. I noted in a prior blog post that in my opinion the best way for a non geologist to get exposure to this sector was though the ETF Global X Uranium (NYSEARCA:URA) and I still believe that.
Disclosure: Long URA
Reuters article : Japan approves energy plan reinstating nuclear power
Facts on Nuclear Reactors worldwide
Disclosure: I am long URA.
Additional disclosure: This is a volatile sector. Do your own due diligence and or consult with your financial advisor before investing in this or any other investment vehicles to make sure of their suitability for your risk tolerance.