TradeTech’s spot uranium prices experienced their first...

TradeTech’s spot uranium prices experienced their first significant move in awhile last week, slumping by $2.00 to reach $19.50 per lb. In the prior week prices inched higher, but before that they went through a long period of stagnancy.
Following last week’s move, TradeTech’s spot uranium price indicator is down 26% this year. Spot uranium prices are only 4% above the 17-year low they fell to last December.
In early 2017 there was a great deal of optimism about the uranium market, with analysts believing that December’s low was an inflection point, paving the way for higher prices. Uranium demand growth expectations are supported by current and future nuclear plant builds, while on the supply-side cutbacks have started to work their way through the market.
Spot uranium prices jumped early this year after top uranium producer Kazakhstan announced a major supply curtailment. But, now spot prices are at risk of unwinding these gains.
While the spot market has started to unravel, things are more positive in the term market. TradeTech’s term price indicators remain unchanged last week at US$27.00/lb (mid) and US$35.00/lb (long). According to FNArena, some utilities are currently evaluating offers for delivery for periods out to 2029.
In company news, the Honeymoon uranium mine in South Australia may reopen next year. The Honeymoon uranium project will require an initial capital investment of $10-million to allow for a restart with a production of 0.88-million pounds of uranium oxide (U3O8) a year. Developer Boss Resources is hoping to restart stage 1 production at the beginning of 2018, with the first production starting about 12-months later. Then, in stage 2, the company would ramp up production, according to Mining Weekly.

http://www.economiccalendar.com/2017/05/31/spot-uranium-prices-take-a-dive/

https://tradingeconomics.com/commodity/uranium