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Uranium Week: Squaring Up

Weekly Reports | Dec 17 2019

As year-end approaches, sellers became more anxious last week not to be stuck with excess uranium before books-close.

By Greg Peel

The Christmas rush was on last week as sellers of uranium become more anxious not to be caught with excess uranium before books-close. Those missing out on recent spot market tenders were forced to reduce offers, leading industry consultant TradeTech's weekly spot price indicator to a -US40c fall to US$25.60/lb.

Solid volumes reflected the anxiety, with nine transactions totalling 950,000lbs U3O8 equivalent changing hands at consistently lower prices through the week.

It was all in the very short end nonetheless, hence not indicative of the wider demand/supply balance as year-end approaches, TradeTech points out. Buyers were mostly content to wait for 2020, while utilities continue to negotiate term delivery contracts for the years ahead.

One small transaction of 200,000lbs for delivery in 2020 was concluded in the term markets. TradeTech's term price indicators remain at US$29.50/lb (mid) and US$33.00/lb (long).

From London to Madrid

"The new Parliament, across parties, and the UK government has some crucial decisions to take to progress towards Net Zero and a decarbonized power supply," said the CEO of the UK Nuclear Industry Association on Friday. "This year the Committee on Climate Change said that, to reach the UK's Net Zero emissions target by 2050, we need all low carbon technology— both renewables, with variable output, and the firm power from nuclear—to play their part".

Which should not be a problem under a nuclear-friendly Johnson government.

Support for nuclear power could also be found at the UN climate change conference in Madrid last week.

The Director General of the International Atomic Energy Agency, having met with the UN Secretary General, noted that they both recognized that nuclear energy is part of the solution to the climate crisis and the IAEA plays a key role in supporting countries in its safe and secure use.

"We came here with a clear message from the IAEA: nuclear energy is part of the solution to the climate change crisis," said Raphael Mariano Grossi.

Tell that to the Australian government. If you can find them in the smoke.

This will be FNArena's last Uranium Week report for 2019. Uranium Week will return in January.

Best Wishes.

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