Uranium Week: Tentative Bounce

Weekly Reports | Sep 27 2022

After falling heavily post the US CPI release, spot uranium bounced slightly last week, but reluctance remains.

-Slight bounce, but Fed drives further spot uranium volatility
-Term markets remain stable
-UN pushes for nuclear energy in Europe to help reach zero net carbon goals

By Greg Peel

Two weeks ago global financial markets responded violently to the shock US CPI print. Spot uranium was not spared, with industry consultant TradeTech’s weekly spot price indicator falling -US$4.50 to US$47.50/lb. It was nothing to do with any demand/supply issue, rather simple selling of a financial instrument.

Last week the Fed raised its cash rate by 75 basis points. While this was as expected, sharply higher rate expectations from FOMC members ensured market turmoil has continued. Prior to the Fed release, the spot market did see trading US$2.00 above the previous week’s level, but afterwards, sellers again lowered their prices. Buyers were not tempted.

On the final spread between the two at week’s end, TradeTech assessed a spot price indicator of US$48.50/lb, up US$1.00 for the week.

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