Uranium spot price slips, conversion rates stable

The spot price for uranium oxide slipped by 25 US cents in the week ending May 10, recording at US$41.50/lb, according to the Ux Consulting Company. Ux month-end spot prices at April 26 were down by an equal measure to US$41.75. TradeTech quoted a more conservative US$41.25/lb for uranium oxide three days earlier. The company notes five transactions over the week with parties negotiating over US$0.25-0.75 increments. It also reported new demand in the shape of a non-US utility while on the sellers’ side USEC was seeking bids on 226tU as UF6, sold on behalf of the US Department of Energy.

Both North American and European conversion rates have remained stable during the month ending April 26, at US$5.75/kgU and US$7.50/kgU, respectively. “The regional hot spot for growth in uranium conversion requirements is the Asian market. “China dominates the conversion requirements growth picture with four times more growth than the next country, the USA. In fact, three of the top five countries in conversion requirements growth are in the Asian Pacific Rim region,” said TradeTech President Treva Klingbiel.

Uranium conversion capacity is reported as sufficient for today’s world requirements but as primary conversion production has been unable to keep in step with targets in recent years, a supply gap looms with secondary deliveries currently supporting the market. An imbalance in the Western market exists between deliveries in North America versus the EU with shipments of uranium hexafluoride necessary to redress the situation, according to TradeTech.