Uranium Week: Sticker Shock

Weekly Reports | Jan 23 2024

Ongoing supply disruptions and uncertainty are leading to ever-higher uranium prices as sellers back off their offers.

-Supply disruptions in Kazakhstan and Niger
-Expectation US Senate will pass Russian uranium import ban
-U3O8 spot price rises further

By Greg Peel

Uranium market participants gathered in Washington last week for the Nuclear Energy Institute’s Nuclear Fuel Supply Forum. Such annual gatherings – of which there are several for the uranium industry at large – typically lead to a lack of activity in the spot market.

That’s not the only reason only two transactions were concluded in the spot market last week. As industry consultant TradeTech notes, sellers are seeking to capitalise on the recent spot price surge, and buyers are reluctant to pay up.

Indeed, primary discussion at last week’s Forum centered around the recent price rise and factors that could provide relief to the strained supply chain, which if left unchecked could lead to additional price increases.

TradeTech’s weekly spot price indicator rose US$2.00 to US$106.00/lb last week, and is up 117% from its 2023 low of US$48.80/lb marked one year ago.

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