Uranium Week: Flat October, -10% Last Week

Weekly Reports | Nov 02 2021

As the spot uranium price fell -10% last week, Cameco reported a quarterly net loss on lower revenue.

-Uranium spot price falls -10% for the week
-Cameco reports quarterly loss 
-Record-breaking spot volume over last three months
-London-listed Yellow Cake PLC makes further uranium investment

By Mark Woodruff

TradeTech's monthly spot price Indicator was little changed over the month of October, increasing by US$0.8/lb from September 30 to close out October at US$43/lb, the highest level the Indicator has reached since January 2013.

Thus far in 2021, the price has increased 45%; it has risen over 76% in the last 24 months. The October 31 level is nearly 43% above the 2020 average of US$30.15/lb.

Recent months have shown historic levels of volatility, with weekly swings of 5-20% in the spot price becoming more common since the introduction of physical-holding-fund buying, in addition to increased trader and producer activity in markets this year.

Record-breaking volume in the spot uranium market in the past three months is directly connected to the launch of the Sprott Physical Uranium Trust (SPUT) in August, notes independent consultant TradeTech. Total volume accumulated by SPUT alone now accounts for a total of 16.9mlbs. 

A total of 72 transactions, representing over 12.5mlbs U3O8 equivalent, were recorded for the month of October, a total that has only been surpassed by the prior two months of August (13.2mlbs) and September (14.5mlbs) this year.

Mid-term and long-term uranium prices remained fairly stable in October in spite of the wild swings witnessed in the spot uranium price.

TradeTech's term price indicators ended October at respectively US$43.75/lb (mid) and US$45/lb (long). Both are unchanged over the past month as well as for the past week. The lack of predictability in the spot uranium price has created a desire by utilities to insulate themselves from price volatility in their term contracting, reports TradeTech.

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