Weekly Reports | Jun 25 2024
Still rivers run deep when it comes to the current uranium market as short term prices weaken, but US authorities shore up support for new nuclear technologies and Paladin stakes its claim as a global uranium resource company.
-U308 spot market, did someone mention quiet?
-US invests US$900m in developing nuclear reactor technologies
-Paladin Energy in pursuit of creating a uranium resource powerhouse
By Danielle Ecuyer
The week that was for the U308 spot market
For now at least, the proposed Russian uranium ban has taken the wind out for the sales of the U308 spot market, which industry experts TradeTech described as "exceptionally" quiet last week.
The market has taken a step back from supply side concerns as the slated Department of Energy waivers on Russian imports have alleviated market anxiety over supply disruption.
The U308 price declined -US$1.75 to US $83.25 last week with the only transaction reported on Tuesday afternoon, post four quiet days.
Three transactions were finally concluded for July delivery at Canada's Cameco, with 50,000lbs bought at US$83.90, followed by a second at US$82.50lb, and a third at US$83.50.
TradeTech also points to utilities shifting focus to the mid-term and long-term deliveries market.
By shifting the time factor, demand in the spot market traditionally slows as sellers wait to establish whether buyers have been successful. In the event the seller is not awarded the deal, they move into the spot market to sell, often depressing the price, as transpired in the week past.
The U308 mid-term price sits at US$93.50 and the long-term price at US$80.
In the last month, the U308 price has retreated by -9% and is off -22% from the previous high of US$107 in early February. TradeTech highlights it remains 48% above the spot value in the corresponding period last year.
Industry news in focus
The US continues to move forward with further fiscal support for its domestic nuclear energy industry. The Department of Energy announced a US$900m support package for the initial deployment of Generation 111+Small Modular Reactor technologies. TradeTech highlights this was part of the Bipartisan Infrastructure Law targeted to strengthen the US nuclear industry.
Meanwhile, the Swedish owners of the Forsmark and Ringhals nuclear power plants announced an extension to the reactors' lives to 80 years from 60 years.
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