Commodities | Dec 16 2014
By Greg Peel
Uranium end-users have now largely satisfied any outstanding 2014 need for uranium purchases and have shifted their focus to deliveries in the first half of 2015, industry consultant TradeTech reports. As supplies are less restricted moving into next year compared to right now, sellers are prepared to accept slightly lower prices in exchange for a more flexible delivery window.
As a result, spot uranium prices slipped over the course of last week, which saw seven transactions completed totalling 800,000lbs of U3O8 equivalent. TradeTech’s spot price indicator has fallen US60c to US$37.25/lb. Utilities were largely absent from the market last week, leaving traders and financial entities, and producers, to provide the volume.
Two transactions were reported in the term uranium market last week, involving less than 1mlbs of U3O8 equivalent. A number of utilities are evaluating potential mid and long term purchases but are closely monitoring price movements, mindful of recent price volatility. Sudden jumps in price have encouraged utilities to postpone their entry into the market.
TradeTech’s term uranium prices remain unchanged at US$42.00/lb (mid) and US$50.00/lb (long).
In other news, the Chinese government is expected to resume approvals to build nuclear plants in coastal regions, having suspended such approvals in the wake of the Fukushima disaster. Construction of the plants would be carried out under “strict safety protocols”.
China is also in the process of seeking a civilian nuclear cooperation agreement with India. Meanwhile, India has signed an agreement with Russia’s Rosatom for the state-owned company to build 12 nuclear reactors in India over a 20-year period.
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