Nov 12 Uranium week: End-of-year buying?

By Greg Peel / November 12, 2019 / www.fnarena.com / Article Link

Weekly Reports |Nov 12 2019

A sudden jump in buyer interest, and subsequently the uranium spot price, begs the question whether utilities have already begun their traditional buying ahead of year-end.

-Spot uranium volumes and prices jump-Year-end buying?-President Trump's? Working Group report pending

By Greg Peel

The week before last brought the announcement of a 90-day extension to waivers of US sanctions on Iran for companies working in Iran's civil nuclear industry. On that news, the uranium spot price jumped US45c.

But given sellers had become increasingly desperate as spot prices drifted lower over recent months, the price was quickly slapped back -US35c.

Last week was nevertheless different. As buying interest from utilities continued to pick up, sellers saw the opportunity to start backing off their offers. By week's end seven spot transactions had been completed totalling 2.2mlbs U3O8 equivalent, industry consultant TradeTech reports.

The consultant's weekly spot price indicator has risen US50c to US$24.65/lb.

Activity also continues to increase in the term uranium markets, TradeTech reports. Several utilities entered the market last week and continue to await or evaluate outstanding offers. A total of over 4mlbs U3O8 equivalent was committed by suppliers to various parties for mid and long term deliveries via off-market discussions.