Commodities | Jul 05 2016
By Greg Peel
Shikoku Electric Power has started loading fuel into its Ikata unit 3 plant in preparation for its planned restart later in the month. Assuming all goes ahead, Ikata would become the fifth Japanese reactor to restart in the five years since Fukushima.
Despite the slow pace of restarts in Japan and the announcement of several reactor closures in the US, global nuclear capacity additions hit 10.2GW in 2015, industry consultant TradeTech reports – the fastest growth rate in 25 years. Growth was mostly driven by China, with help from South Korea and Russia.
But capacity growth has done little to support uranium prices. The month of June saw a glimmer of hope as the sport uranium price rose to US$28.25/lb but it just as quickly retreated to US$26.00/lb. As activity slowed towards the end of last week ahead of the US long weekend, TradeTech’s spot price indicator fell US40c from last week’s US$26.80/lb to end the month on US$26.40/lb.
The price dip mid-month did encourage some buyers to pick up excess inventory at attractive prices. TradeTech reports 27 spot market transactions over June totalling 3.4mlbs U3O8 equivalent.
Five transactions were reported in the term markets, all of them mid-term. Producers are under pressure as intermediaries are looking to take more of the market, forcing term prices lower despite some rekindling on interest from utilities. To that end, TradeTech’s mid-term price indicator has fallen US85c to end the month on US$28.15/lb. The consultant’s long term price indicator has fallen US$1.00 to US$40.00/lb.
Find out why FNArena subscribers like the service so much: "Your Feedback (Thank You)" – Warning this story contains unashamedly positive feedback on the service provided.
