Uranium Week: Term Contract Prices Soar

Weekly Reports | Oct 05 2021

As the weekly spot uranium price has a second consecutive week of falls, prior increases have placed upward pressure on term contract prices.

-Material rises for both mid and long-term prices 
-Vimy Resources secures mining approvals
-Uranium spot price falls over -6% for the week

By Mark Woodruff

Term contracting prices moved up strongly last week, potentially signalling the recent rise in spot prices may not be an aberration.

TradeTech's mid-term price indicator for September 30 closed at US$43.75/lb, a rise of US$8/lb, while the long-term price indicator increased by US$10/lb to close the month at US$45/lb. 

Growing levels of spot purchases, by parties that intend to sequester the material, is placing pressure on the mid-and long-term uranium markets, points out TradeTech.

The August trend of spot uranium price rises outpacing prices in the mid-and long-term sectors was reversed in September. From the second half of the month spot prices began to fall. 

Buyers came to the mid-and long-term markets through various channels, including formal Requests for Proposals (RFPs) and off-market discussions with potential suppliers. Five transactions were reported in the term uranium market for September.

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