Commodities | Nov 17 2015
By Greg Peel
Utilities were represented on the buy-side in the spot uranium market last week but activity was very thin, thanks largely to the mid-week Veterans Day holiday in the US. A mere four transactions were completed, industry consultant TradeTech reports, totalling 400,000lbs U3O8 equivalent.
TradeTech’s weekly spot price indicator remains unchanged at US$36.00/lb.
Utility interest is nevertheless evident, in both the spot and term markets. Offers are due this week for a US utility seeking 850,000lbs for delivery in February, another 800,000/lbs in September and additional quantities for delivery across 2017-21. Two other utilities were considering entering the spot market as the week came to a close, TradeTech reports.
No transactions were recorded in term markets last week but two utilities are awaiting offers for a total of over 6.2mlbs to be delivered across 2017-26, another is seeking 3.6mlbs across 2017-21 and another is seeking 10.5mlbs across 2017-2026.
TradeTech’s term price indicators remain unchanged at US$38.75/lb (mid) and US$44.00/lb (long).
The International Energy Agency last week released its annual World Energy Outlook report for 2015.
As the Chinese economy slows, the IEA predicts that by 2040, India will prove the world’s largest demand centre for every major constituent of the world’s energy mix – oil, gas, coal, renewables and nuclear. By 2040 China’s oil imports will be nearly five times that of the US, and India’s will exceed those of the European Union.
An Indian “super-cycle”?
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