Weekly Reports | Aug 20 2024
Share prices are weak and short positions on the rise ahead of Kazatomprom's market update.
-Spot uranium relatively quiet
-Ai and semiconductors add to positive industry outlook
-Short positions on the rise for Aussie uranium stocks
By Danielle Ecuyer
August is proving to be a quiet market for the spot uranium market, with industry consultants TradeTech describing it as "exceptionally quiet" but not bereft of activity.
Six spot price transactions took place last week which brought forth some U308 price volatility. The TradeTech spot price indicator fell below US$80.90lb from US$81.50lb on Wednesday, before recovering to US$81lb by Thursday.
According to the industry consultants, sellers were keen to capitalise on any buying opportunities.
The TradeTech Mid-Term U308 Price Indicator stands at US$90lb and the Long-Term U308 price indicator at US$82lb.
The longer-term prospects for nuclear generation power remain robust, with TradeTech pointing to the hyperscalers, Amazon, Google and Microsoft continuing to evaluate and consider using nuclear energy.
Japan is also looking at re-starting its nuclear reactors in a move intended to support the development of its involvement in artificial intelligence and semi-conductors.
Despite the attractive longer-term demand drivers for nuclear energy and uranium, the shorters have continued to raise their short positions in some of Australia most traded uranium stocks. It would appear they are taking the lead from the near-term weakness in the U308 spot price.
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