Commodities | Jun 14 2016
By Greg Peel
The Indian prime minister’s visit to the US included a joint announcement from President Obama and Prime Minister Modi that engineering and design work has been commenced on a site in India at which Westinghouse is to build six nuclear reactors.
This was at least some good news as industry participants met last week in New Orleans for the annual World Nuclear Fuel Market conference. The mood was otherwise subdued as the industry continued to reel from the news major US nuclear energy producer Exelon will be shutting down three reactors.
Meanwhile, the Swedish parliament has voted to abolish the country’s tax on nuclear power in support of a goal of making Sweden 100% fossil fuel-free by 2040.
On the supply side, Denmark has passed legislation to permit and regulate uranium export from Greenland. The legislation comes into place at the right time for Greenland’s only advanced project predicted to produce uranium, Kvanefjeld, which is owned by ASX-listed Greenland Minerals & Energy ((GGG)).
There was little activity reported in uranium markets last week. Industry consultant TradeTech reports only four transactions totalling 850,000lb U3O8 equivalent. While utilities did appear on the buy-side, buyer complacency is frustrating sellers stuck with excess material. TradeTech’s weekly spot price indicator has fallen US25c to US$28.00/lb.
There were no transactions reported in term markets last week. TradeTech’s term price indicators remain unchanged at US$29.00/lb (mid) and US$41.00/lb (long).
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