Media - In the Market
Update for the public provided three days after publication.
Sep 19, 2014 - The spot uranium price rose dramatically this week on the heels of strong buying interest from both intermediaries and utilities. The spot price has been rising steadily since the beginning of August, increasing more than $3.50 per pound U3O8 in just the past five days—the highest price level reported by TradeTech since July 2013. A confluence of events are responsible for the price rise. In recent months, several utilities have stepped into the spot and term markets and have accepted offers for significant volumes of uranium. Concurrently, spot uranium supply declined with several of the producers that had been routine spot market sellers less active this quarter, due to offtake agreements and previously concluded contracts. As a result, there are fewer “have-to” or cash-driven sellers in the market and supply is thinner, with sellers much more price sensitive than they have been in previous months. The emergence of firm demand in the market, combined with political and legal uncertainties stemming from the ConverDyn vs. the US Department of Energy lawsuit, the labor strike at Cameco’s McArthur River mine and Key Lake mill, and growing unease over sanctions against Russia, has encouraged sellers to increase offer prices. Potential buyers serious about purchasing are faced with paying higher prices, and sellers have systematically raised offer prices with each new expression of buying interest. A total of 17 transactions are reported for the week. Prices rose in each successive transaction concluded during the week, with prices in transactions concluded at the beginning of the week reflecting lower prices than transactions closed at the end of the week. Price levels continue to vary depending on delivery location, form, origin, and delivery timing. TradeTech’s Weekly U3O8 Spot Price Indicator is $36.50 per pound U3O8, up $3.50 from the September 12 Value and unchanged from the September 18 Daily U3O8 Spot Price Indicator. read more