Weekly Reports | Mar 16 2021
While the weekly spot uranium price remains unchanged, a new report highlights the crucial role nuclear will play for affordable energy and climate change mitigation.
-UN report outlines the way forward for nuclear
-Rosatom readies to build four reactors in China
-Spot uranium holds at $US27.40/lb.
By Mark Woodruff
A new report released by the UN Economic Commission for Europe (UNECE) highlights the crucial role for nuclear energy in providing affordable energy and climate change mitigation. In addition, it also has a role in eliminating poverty, achieving zero hunger, providing clean water as well as a part in economic growth and industry innovation.
The report was prepared by the UNECE's Expert Group on Resource Management and was supported by experts at the International Atomic Energy Agency, the OECD Nuclear Energy Agency and the World Nuclear Association.
The report addressed national and regional considerations for the nuclear fuel cycle, including the opportunities and challenges for countries wishing to utilise their local uranium resources.
In addition to noting government policy considerations, it provided a comparison of market-based and state-based funding of uranium exploration and development.
Nuclear energy is seen as a critical component of a decarbonised energy system for those member states (56) that choose to consider it as part of their sustainable development and climate change strategy.
UNECE says there are many sustainable options for implementing a nuclear fuel cycle and waste management strategy. It notes that a range of nuclear reactor designs are currently available, based on mature and proven technologies, which offer high levels of safety and outstanding operating performance.
In addition, a range of small modular reactor and advanced reactor designs are currently under development, with some ready for near-term deployment.
Company News
Russian state-owned nuclear giant Rosatom is expected to start construction of four reactors in China over the next two years.
Rosatom signed agreements with Chinese National Nuclear Corp in 2018 for the construction of the four VVER-1200 PWR reactors.
London listed physical uranium investment fund, Yellow Cake plc, has finalised negotiations to purchase 500,000 lbs of U3O8, according to industry consultant TradeTech.
Earlier this month the fund raised US$140m from investors, of which approximately US$100M will fund the acquisition of 3.5m lbs from Kazatomprom.
Uranium Pricing
TradeTech’s Weekly Spot Price Indicator remains unchanged from the prior week's Indicator at $US27.40/lb.
The Weekly Spot Price Indicator has declined nearly -14% from a year ago and is down nearly -10% in 2021. The average weekly uranium spot price in 2021 is US$29.11/lb -US$0.60 below the 2020 average.
A total of approximately 700,000 lbs U3O8 in two transactions were reported for the week.
Positive signs for the market include increased liquidity, the surge in the equity market for uranium and the additional number of participants, particularly financial entities, active in the market, explains TradeTech. There is also the global recognition of the need for nuclear in order to achieve net-zero carbon emissions goals (e.g. China's 14th Five-Year Plan).
Counterbalancing this is a lack of spot buying by utilities, the drop in producer buying and what appear to be sufficient supplies to meet current demand.
Nonetheless, the fundamentals do indicate that even with increased production from Kazakhstan and a flat requirements curve there will be a need for new primary production in just a few years as in-ground production reserves are depleted.
The spot uranium market is one driven by short-term dynamics and behaviour, notes TradeTech. So although the number and type of parties willing to re-enter the spot uranium market is on the rise in 2021, fundamental data about the longer term has yet to translate into higher spot prices.
TradeTech's term price indicators are US$31.25/lb (mid) and US$35/lb (long).
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