Weekly Reports | Feb 11 2025
Brokers re-iterate the sell off in uranium stocks is overdone and positive medium term demand/supply dynamics will support prices
-Another weak week for spot U308
-Macro announcements bullish for nuclear energy
-Sector analysts remain upbeat on structural supply deficits
By Danielle Ecuyer
Spot Market Blues
Despite a reprieve from President Trump's imposition of 25% tariffs on Canadian imports for 30 days last week, spot U3O8 continued to experience ongoing price softness.
Industry consultant TradeTech noted a fall in the offer price of U3O8 below US$70 last Thursday encouraged some buyers to return to the market. The consultants detail a few transactions, including one on Thursday after hours for March delivery to France's Orano at a price of US$69.50/lb, with three more following in the afternoon.
Another delivery for Orano in France at US$68/lb and two others at US$69.75/lb for 100,000 lbs of U3O8 delivery at ConverDyn's Metropolis facility (USA) were reported on Friday.
TradeTech's U3O8 spot price indicator finished the week down -US$2.10/lb to US$69.15, marking a fall of -35.4% since a year earlier when the price reached a 16-year high of US$107/lb.
In the last three months, the spot price has slid by -16.7% and is off -19.9% against the 2024 average price of US$86.29/lb, the consultants note.
TradeTech's Mid-Term U3O8 price indicator finished at US$76/lb, and the Long-Term price indicator at US$82/lb.
US Energy Policy
The CEO of Liberty Energy, Chris Wright, was confirmed as the new US Energy Secretary on February 4. Wright's first Secretarial Order has directed the Department of Energy to move America's focus away from net-zero carbon policies to unlock "American energy production".
Specifically, Wright was quoted as saying,
"As global energy demand continues to grow, America must lead the commercialization of affordable and abundant nuclear energy. As such, the Department will work diligently and creatively to enable the rapid deployment and export of next-generation nuclear technology."
TradeTech also points to a Bloomberg report the new administration is investigating legal parameters around canceling the US$400bn program to finance clean energy technologies.
The consultants believe concern over tariffs is overriding further positive macro news. On February 5, 2025, the National Association of State Energy Officials (NASEO) announced the launch of the Advanced Nuclear First Mover Initiative.
It is a multi-state initiative to accelerate the deployment of advanced nuclear energy projects and is co-chaired by New York, Indiana, Kentucky, Tennessee, and Wyoming, with participation from Maryland, Pennsylvania, Utah, Virginia, and West Virginia.
The initiative aims to encourage public-private partnerships to reduce financial and technological risks, streamline permitting processes, and strengthen supply chain knowledge. The target is to establish a pipeline of projects offering economies of scale and cost efficiencies.
In the UK, Prime Minister Keir Starmer's Plan for Change incorporates the goal of approving more nuclear plants across England and Wales. Reforms will involve changes to planning rules and pathways for new technologies such as small modular reactors.
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