Weekly Reports | Sep 26 2017
After four consecutive weeks of painfully grafting higher, the uranium spot price dropped back below US$20/lb last week.
By Greg Peel
Who put Sisyphus in charge of the global uranium market? After four weeks of incrementally grinding higher – trying to escape the gravitational pull of US$20/lb – last week saw industry consultant TradeTech’s weekly spot price indicator fall -US90c to US$19.85/lb.
The consultant blames the prior week’s annual World Nuclear Association Symposium in Washington. In better times, the uranium spot price used to pop after these symposiums given participants would gather round the bar and all talk each other up. Not so anymore. This year featured pessimistic price forecasts from some analysts.
Not all in the market agree with such pessimism but it was enough to encourage sellers to change their stance from backing off to higher prices to selling quickly at ever lower prices as the week progressed. Volume was sizeable in four transactions totalling 1.2mlbs U3O8 equivalent.
What we do know is that utilities are still prepared to buy under US$20/lb. They were active on the buy-side last week for both U3O8 and UF6. Producers featured on the sell-side and speculators played both sides.
Uncertainty In The USA
Hot on the heels of the WNA Symposium came the International Atomic Energy Agency general conference in Vienna last week. There the agency director general played the climate change card in urging member states to consider nuclear in their low-carbon energy mix plans given innovations in nuclear technology can significantly help global climate efforts.
It was not enough to spark any enthusiasm. Over in the US it is still unclear what path the domestic nuclear power industry will take. The State of Georgia is set for a round of hearings to determine whether it’s worth allowing the two-unit extension at Plant Vogtle to continue following delays and cost overruns. Meanwhile, South Carolina is similarly trying to reach a decision on the currently abandoned two-unit extension at the VC Summer Station.
There was some life in uranium term markets last week, although no new transactions. New demand merged and a number of utilities are considering contract proposals or are expected enter the market in current weeks.
As they (almost) always are. TradeTech’s term price indicators remain unchanged at US$24.30/lb (mid) and US$31.00/lb (long).
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