Weekly Reports | Jan 21 2020
Utilities are increasingly taking an interest in uranium market developments, but so far the spot price continues to slide further south.
-General interest from utilities is rising, with the number of active discussions on the increase
-Uranium demand is anticipated to lift later this quarter
-Global transitioning towards carbon neutral does not always involve nuclear power generation
By Rudi Filapek-Vandyck
Spot uranium continues to slide downwards as the pricing pressure that started to exert itself during the final weeks of calendar 2019 simply won't go away.
Industry consultant TradeTech does report, however, buying interest is returning with a variety of parties showing renewed interest, though this has, to date, not prevented the price of uranium weakening further.
On TradeTech's assessment, spot U3O8 weakened yet another -US10c last week to US24.50/lb. This is despite four spot transactions totaling over 400,000 pounds U3O8 being concluded during the week.
Utilities Increasingly Showing Interest
One source of industry optimism stems from the fact a number of utilities have started up preliminary discussions with potential suppliers. TradeTech reports some of these discussions have already led to concrete purchases, with some market participants expecting demand to return throughout this quarter.