Uranium Week: Dragged Down

As uranium has now become a financial instrument for investors, the spot price was hit last week in line with financial market volatility following the US CPI release.

-Spot uranium dives on US inflation report
-Term market demand increasing
-Coal-fired plants converting to nuclear?

Industry consultant TradeTech’s weekly spot price indicator closed two Fridays ago at US$52.00/lb and the market was buoyed by news of increasing demand for nuclear energy across the globe. On Monday last week, 100,000lbs U3O8 traded at US$52.60/lb, TradeTech reports.On Tuesday financial markets were sent into turmoil by hotter than expected US inflation data. Spot uranium was not spared.By week’s end 900,000lbs U3O8 equivalent had changed hands at successively lower prices over the period. TradeTech’s weekly spot price indicator closed at US$47.50/lb, down -US$4.50.The fall came even as China announced additional reactor approvals.It’s understandable why utilities now eschew the volatility of the spot market and […]

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