Commodities | Jul 14 2015
By Greg Peel
The volatility seen in the spot uranium market in 2014 has largely subsided in 2015, industry consultant TradeTech notes, leading to increased liquidity. Spot sales are up 69% from a year ago in volumes terms and 40% in dollar terms. At the end of the March quarter, spot prices were up 20% from the year before and term prices were relatively stable.
The spot market was stable last week, TradeTech reports, which saw five transactions completed totalling 800,000lbs of U3O8 equivalent. Demand for spot volumes remains relatively slow but with mid-term demand continuing to build, sellers are unwilling to reduce their prices. Little fluctuation was seen for spot prices over the week and TradeTech’s weekly spot price indicator remains unchanged at US$36.25/lb.
Two mid-term transactions were reported last week involving a total of 1mlbs of U3O8 equivalent, and various utilities are still evaluating supply contract offers. One long-term transaction was also completed last week. TradeTech’s term price indicators remain unchanged at US$39.50/lb (mid) and US$46.00/lb (long).
Last week brought news fuel loading will commence shortly at Kyushu Power Co’s Sendai units 1 and 2 ahead of expected restarts in August. TradeTech notes 43 Japanese reactors are potentially able to restart and 24 are currently in the process of restart approval.
In other news, India continues to secure supply agreements to fuel that country’s nuclear reactors. In April, India purchased 13mlbs of uranium from Canada’s Cameco and this week Kazakhstan announced it had signed a deal with India for the supply of 13mlbs over the next five years. Between 2010-14, Kazakhstan supplied India with 5.5mlbs.
Last year Uzbekistan agreed to supply India with 5.2mlbs over four years and news last week is that India is in further discussions with Uzbekistan on future supply deals as well as stronger cooperation on security and defence.
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