Weekly Reports | Nov 26 2019
Despite caution surrounding Iran sanctions waivers, and other ongoing uncertainties, the spot uranium price last week reached US$26.00/lb for the first time in eight months.
-Spot uranium hits eight-month high
-One waiver on Iranian sanctions terminated
-Buying continues unabated
By Greg Peel
Late last month the White House extended for ninety days waivers on Iranian sanctions for those companies assisting Iran in its civil nuclear ambitions. While the extension upset some Republicans, the thinking is better to have eyes and ears inside Iran's nuclear industry than to try and monitor proceedings from outside.
Had the waivers not been extended it would have meant sanctions on European, Russian and Chinese companies working in Iran, leading to up to 20% of US nuclear fuel imports being withdrawn.
Which, one presumes, would have resulted in a higher uranium price in the US. Yet the global spot uranium price rallied on the news, and has been rallying ever since, as utilities decided it was time to step into the market to purchase required inventory, with year-end approaching. An uncertainty had been removed, at least for ninety days.
The uranium price rallied again two weeks ago, gaining momentum as producers joined in the newfound buying spree, likely fearful of missing out.