Weekly Reports | Jun 06 2017
The uranium spot market is seeing opportunistic buying under US$20/lb but a lack of interest above.
By Greg Peel
The fall in the uranium spot price to under US$20/lb drew opportunistic buyers out of the woodwork last week. A jump in volume followed, with five transactions concluded in the last throes of May and another five recorded in the first days of June, industry consultant TradeTech reports.
But while end of month buying resulted in the spot pricing rising to mid-week, as soon as the US$20lb line was crossed that interest faded once more. Sellers were forced to drop their offer prices to conclude transactions. All up, the ten transactions represented 1.4mlbs of U3O8 equivalent, with the bulk of the buying interest actually in the form of UF6.
TradeTech’s spot price indicator rose then fell again, ending the week with a net US25c gain to US$19.75/lb.
It is worth noting that the sharp bounce in the US-dollar denominated uranium spot price seen early in the year came about despite the headwind of a surging US dollar at the time, courtesy of Trump euphoria. In the ensuing period the US dollar has drifted back to pre-election levels, but this has not provided uranium with a tailwind either.
There was one transaction concluded in the term markets last week, representing a 3.4mlb contract for delivery over 2020-24. Term market interest continues to build, and in this spot traders are putting much faith, but things are moving slowly and failing to shift the price dial. Indeed, the end of May saw TradeTech once again lower its term price indicators despite indications of growing demand.
TradeTech’s mid-term indicator has fallen -US$2.75 to US$24.25/lb and long-term indicator has fallen -US$1.00 to US$34.00/lb.
TradeTech’s daily spot price indicator finished the month of May at US$19.95/lb, down from US$22.50/lb at end-April. The month saw 25 spot transactions concluded for a total of 2.8mlbs U3O8 equivalent.
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Those of a certain age may not be too upset to see it go.
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