##{"id":63726,"date":"2014-06-17T10:18:14","date_gmt":"2014-06-17T00:18:14","guid":{"rendered":"http:\/\/www.fnarena.com\/index.php\/2014\/06\/17\/uranium-week-price-slips-again\/"},"modified":"2014-06-17T10:18:14","modified_gmt":"2014-06-17T00:18:14","slug":"uranium-week-price-slips-again","status":"publish","type":"post","link":"https:\/\/staging.fnarena.com\/index.php\/2014\/06\/17\/uranium-week-price-slips-again\/","title":{"rendered":"Uranium Week: Price Slips Again"},"content":{"rendered":"

By Greg Peel<\/p>\n

Last week President Obama proposed revamped regulations for US power plants with the aim of cutting carbon emissions 30% by 2030. Industry officials have pointed out that such a drastic cut, which is largely targeted at coal-fired plants, is not achievable without the contribution of nuclear power to the US energy mix.<\/p>\n

In Japan, Tohoku Electric Power Company has applied to the regulator for safety checks on unit 1 at its Higashidori nuclear plant in its efforts towards restarting the idled reactor. We recall, nevertheless, that great hopes were held for the restarts of Kansai Electric’s Ohi units 3 and 4 sometime in the second half of 2014 to represent the first Japanese restarts and a big shot of confidence for global uranium demand. Yet last month the court upheld environmental protests from the local citizenry and thus threw any impending restarts into doubt.<\/p>\n

The uranium spot price thus continues to wallow. The week before last provided possible light at the end of the tunnel with a US25c rise in price – any rise being a rare event in recent months – but alas the rebound only served to inspire the sellers. Industry consultant TradeTech reports five transactions were conducted in the spot market last week, totalling 600,000lbs. TradeTech’s spot price indicator has fallen back US15c to US$28.35\/lb.<\/p>\n

Meanwhile, the supply-side response continues. Last week Rio Tinto ((RIO)) announced it would cut back the workforce at its majority owned Rossing mine in Namibia by 23% in response to weak global uranium demand. Rossing produced 6.3mlbs of U3O8 in 2013.<\/p>\n

The term market at least showed some signs of life last week, TradeTech reports. One mid-term transaction was completed, two utilities are presently evaluating offers and another entered the market looking for offers. TradeTech’s term price indicators remain unchanged at US$31\/lb (mid) and US$45\/lb (long).
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