Uranium Week: Onwards Ever Upwards

Weekly Reports | Dec 05 2023

Spot and term uranium prices continue to rise, with supply constraints looming in the 2026-28 period.

-Spot uranium price moves higher again
-Term prices also on the move on supply concerns
-Once eschewed, nuclear energy now a feature of COP discussions

By Greg Peel

The uranium spot price continued higher last week, up another US75c to US$81.50/lb on industry consultant TradeTech’s weekly indicator. At end-November the spot price was up US$6.75 from end-October.

A mismatch between prices for delivery at different delivery locations across the globe has continued, and TradeTech notes this is not unusual in the uranium market, particularly as year-end approaches.

Typically the gap will close once traders exploit the arbitrage opportunity, but this won’t necessarily happen quickly due to the lack of liquidity and limited number of market players, each with their own competing internal objectives and goals.

The other factor influencing the increase in the spot price during November has been the rise in buying interest from all types of purchasers across all time periods. Spot uranium buyers last month included financial funds, traders, utilities, and suppliers.

There remains concern US Congress will move to limit supplies of Russian enriched uranium, ahead of other “friendly” sources catching up. This is an issue that’s been hanging over the market all year, and it doesn’t appear there is likely to be any movement as yet, but the risk is still taken on board.


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