Uranium Week: Covid Hesitancy

Weekly Reports | Dec 07 2021

Omicron concerns led to a drop-off in spot uranium activity last week and a subsequent price plunge on lack of interest.

-Uranium spot volumes plunge after a record November
-Omicron fear rattles financial speculators
-Spot price falls on lack of buyers

By Greg Peel

Industry consultant TradeTech’s uranium spot price indicator dropped -US$2.00 over last week to US$45.00/lb. It was not as a result of a rush of selling, but a drying up of buyer interest.

We recall that covid in its earlier forms caused uranium production shutdowns from Canada to Kazakhstan, on concerns for worker safety and the safety of the small communities nearby remotely-located mines and processing plants, from which most workers are drawn.

While shutdowns should imply supply shortages and higher prices, TradeTech notes that since the arrival of the Sprott Physical Uranium Trust into the spot market, financial speculation in uranium has amped up, supported by net zero emission targets and nuclear power’s “green” credentials.

(The jury is out on nuclear’s “greenness”. See last week’s report. Full link below.)

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