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RBC Capital Markets: Uranium Weekly (November 26, 2013)
November 26, 2013
Uranium Weekly

Ux Spot Price Up $0.25 to $36.25/lb; TradeTech Up $0.40 to $36.25/lb

Spot Market

Ux spot price indicator was up $0.25/lb to $36.25/lb and TradeTech was up $0.40/lb to $36.25/lb. Ux reported that the market remained relatively active over the past week, with volume of 1.3 million pounds U3O8e in 9 transactions.

Ux reported 3.1 million pounds U3O8e in 24 transactions during November 2013 (month-to-date).

The 2013 YTD spot transaction volume is now 40.7 million pounds U3O8e in 288 transactions. At this time last year, the 2012 spot transaction volume was greater than 36.0 million pounds U3O8e in 214 transactions.

Term Market

Ux term price indicator was unchanged at $50.00/lb, and TradeTech was unchanged at $50.00/lb (quoted monthly at month-end). Ux reported that activity in the term market has picked up slightly, especially for mid-term delivery, with a number of single-year contracts involving small quantities for late 2014 to early 2016 reported by non-utility buyers.

A non-US utility selected a preferred supplier for approximately 1.2 million pounds U3O8e for delivery over a six-year period starting in 2016.

A non-US utility is evaluating offers for just over one million pounds U3O8e contained in UF6 with delivery over the 2015 to 2019 time period.

A US utility is reviewing offers for about one million pounds U3O8e with delivery in 2017 - 2019.

A non-US utility is nearing selection for up to 900,000 pounds per year U3O8e as either UF6 or EUP with delivery over the 2015 to 2020 time period.

A US utility is seeking uranium contained in EUP with delivery beginning in 2016.

New demand emerged this week with a US utility entering the market seeking delivery of material in 2016 and 2017.