Uranium Week: Term Markets On The Move

Weekly Reports | Aug 07 2018

It appears a long-awaited up-tick in utility demand for term delivery contracts may be finally coming to pass in the uranium market.

-Spot price up 27% year on year
-Notable jump in term market demand
-Paladin reaches for Summit

By Greg Peel

Two weeks ago the uranium spot price jumped on the news the US Department of Commerce would indeed investigate the US uranium production industry, which is petitioning for government support as a matter of national security, but more so on the news Cameco had decided to extend its Macarthur River mine and Key Lake mill shutdown indefinitely.

Activity in the spot market continued to be brisk last week as 1.3mlbs U3O8 equivalent changed hands in seven transactions, industry consultant TradeTech reports. Utilities, traders, producers and speculators all featured on the buy-side.

Sellers were nevertheless there to enjoy the spoils following the prior week’s big jump in price. TradeTech’s weekly spot price indicator rose only US10c further to US$25.95/lb.

The spot price has seen an uninterrupted rally over the last five weeks to mark a 9% gain for the year and 27% over twelve months. The 2018 price average to date of US$22.49/lb is US42c/lb above 2017’s average, TradeTech notes.

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