Weekly Reports | Sep 19 2023
With supply curtailed and demand rising, the spot uranium price is now at its highest level since Fukushima.
-U3O8 buyers chase up rising offers
-Utility buying frenzy predicted
-Another Japanese nuclear restart
By Greg Peel
The week before last saw uranium market participants attending the annual World Nuclear Symposium in London. Such global gatherings, of which there are several for the industry through the year, tend to result in little or no activity in the market.
The one spot transaction in the week had industry consultant TradeTech’s weekly spot price indicator rising US$1.00 to US$62.00/lb. But with everyone back last week, the race was on.
At the Symposium, attention was given to supply-side issues including Cameco downgrading its production guidance and Orano being forced to cease production at its Niger mine due to sanctions imposed on the military rulers leading to logistical constraints, which come amidst the ongoing problem of uncertain supply from Russia.
On the other hand, the Sprott Physical Uranium Trust re-entered the market after a long hiatus, issuing 1.5m new units in the trust, increasing its cash position from US$10.2m to US$34.2m. The fund currently holds 61.8mlbs U3O8, TradeTech reports.
Taking all of the above into account, sellers were last week happy to continue raising their spot price offers and forcing buyers to chase. This meant only a limited number of transactions were concluded, but at increasingly higher prices.
TradeTech’s weekly spot price indicator rose US$3.50 to US$65.50/lb, to its highest level since 2011 when the Fukushima disaster sent the spot price on a path to US$17.75/lb.