Uranium Week: Selling Returns

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By Greg Peel

The excitement of three weeks ago, in which industry consultant TradeTech’s weekly uranium spot price indicator jumped US$1.90, has now evaporated. The spot price fell back US50c two weeks ago and last week plunged another US$1.25 to US$36.50/lb. The US$1.90 weekly jump had been the largest since 2011.

Activity last week was relatively quiet, TradeTech reports. Six transactions totalling 700,000lbs U3O8 were completed, with each transaction settling at a lower price as the week progressed. Many buyers are reluctant to commit while several term market delivery tenders are still pending, thus sellers, which included producers and intermediaries, were forced to lower prices.

Three transactions were completed in the term markets last week, totalling 3.3mlbs for delivery over a three-year period. TradeTech’s term price indicators remain unchanged at US$39.50/lb (mid) and US$44.00/lb (long).

BHP Billiton ((BHP)) released its quarterly production report last week, in which it was revealed the completion of smelter maintenance meant a 34% increase in production over last September quarter at the company’s Olympic Dam mine.

In Japan, Shikoku Electric took a step towards the restart of its Ikata unit three reactor, having received the approval of the local mayor. Kyushu Electric’s Sendai units one and two are already up and running, representing Japan’s first two reactor restarts.

And as anticipated, last week UK prime minister David Cameron, in a joint press conference with visiting Chinese president Xi Jinping, confirmed China would invest in the Hinkley Point reactor to be built in the UK. The reactor is scheduled for start-up in 2025.

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