Uranium Week: Energy Security

Weekly Reports | Aug 29 2017

By Greg Peel

In a quiet week on the uranium spot market, trading continues to bounce back and forward but never quite break away from the US$20/lb level. Four transactions were concluded in the spot market last week, industry consultant TradeTech reports, totalling 400,000lbs U3O8 equivalent.

Having fallen around -22% over twelve months, the spot price has now been stuck under US$21/lb since mid-May.

Cheap Gas In The USA

The future of the US nuclear industry is in doubt, and beholden to federal and state governments. Nuclear power cannot compete with gas-fired power on cost, nor with renewable energy enjoying government subsidies. This has led to the planned shutdown of legacy reactors across the country and the abandonment of new reactor builds.

The question is as to whether the US government sees the need to support nuclear energy as part of the mix, given the abundance of cheap shale gas in the country and the ever improving technology of renewable options. What nuclear energy can do is deliver critical baseload power which, to date, has been beyond the capacity of renewable energy.

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