Uranium spot price slips

Uranium oxide’s weekly spot price slipped by US$1.25/lb to US$40.50/lb on March 1, according to the Ux Consulting Company.

Month-end spot prices on February 22 stood 75 cents lower at US$41.75/lb.

Conversion rates in Europe remained unchanged at US$8.00/kgU while in North America they edged downwards by 25 cents to US$5.75/kgU. Conversion prices have generally fallen since the end of July last year following a steep decline during May-June. However, European prices have been relatively stable since November.

Looking at the longer-term, the share of nuclear power in primary energy demand is expected to remain steady at six percent with demand to rise by 1.3 per cent over this period.

While some raise questions about the available supply, the Australian Bureau for Agricultural and Resource Economics (Abare) is confident Australia can supply a considerable part of the required quantities. Home to more than one-third of the world’s known uranium resources, Abare expects Australia to remain a key provider of uranium exports to the growing Asian markets, lead by China. Australia’s uranium production is forecast to increase significantly on the back of low-cost resources, proposed new mines and rising overseas demand. During 2009-2030, the country’s uranium output is predicted to more than double from 8700t to 21,000t.