Uranium Week: Everyone Wants In

Weekly Reports | Dec 03 2019

Volumes in uranium markets surged in November as buyers from all corners jumped on the bandwagon.

-Spot uranium volumes up 50%
-Uncertainties still linger
-Swedes prefer green

By Greg Peel

"The month of November was tumultuous on a number of fronts for the nuclear fuel industry," notes industry consultant TradeTech. "The decision by the US government to lift the waiver on Iran's Fordow Fuel Enrichment Plant sent the already uncertain uranium market into overdrive."

Implications of the termination of the one waiver were covered in last week's report.

"Market participants across the board, whether utilities, producers, traders, or financial entities, found themselves confronted with another political policy decision that could have major repercussions for the commercial nuclear fuel sector," TradeTech continues.

The month of November saw 6.0mlbs U3O8 change hands in the uranium spot market – 50% greater than the 2019 monthly average to date.

TradeTech's weekly spot price indicator rose another US10c to US$26.10/lb in the final week, to end the month up 6.5% from end-October's US$24.50lb. That's over 6% above 2018's average spot price of US$24.56/lb, and the 2019 average to date is US$25.66/lb.

A similar volume surge was evident in term markets during the month, which is where utilities secure future requirements. Contracts for delivery over the 2020-27 period settled during the month totalled 9.7mlbs U3O8 equivalent.

TradeTech's monthly term price indicators have risen to US$29.50/lb (mid) from US$27.50/lb in October, and US$33.00/lb (long) from US$31.00/lb.

Yet the entire nuclear industry, from miners to power generators, will end the year in the same state of uncertainty as they did at the beginning.

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