While the TradeTech Uranium Spot Price Indicator climbed to a 26-month high of USDollars 44.00 per pound uranium oxide -U3O8- in November, market activity declined and the spot price fell throughout December to end 2014 at USDollars 35.30 - only US Dollars 1.00 above the 2013 year-end price.
Following increased buying activity from all sectors and considerable market volatility in November, buying interest waned, especially among utilities, which accounted for less than 30 percent of the traded volume in December, said TradeTech President Treva E. Klingbiel. The majority of year-end demand was largely discretionary and utilities, as well as intermediaries and other buyers, are now looking to acquire material for delivery in the second quarter of 2015 and beyond, Klingbiel added. Despite a more volatile spot market in the fourth quarter, annual spot market volume totaled just over 39 million pounds U3O8 equivalent in 2014, a marginal decline from 2013 volume of approximately 40 million pounds U3O8 equivalent. Presently, spot uranium supply remains extremely thin as most sellers hold firm to offer prices and wait for increased demand during the first quarter of 2015, particularly in the mid- and long-term uranium markets, which, in turn, is expected to create some additional spot market demand as intermediaries look to secure supplies for mid-term opportunities, Klingbiel added.
The year 2015 is positioned as a pivotal year for the uranium market with Japan moving closer to the restart of its first nuclear power facility since the March 2011 Fukushima accident and new reactor build projects are gaining momentum in Asia. In November, the Kyushu Electric Power Company received final approvals to restart the two reactors at its Sendai Nuclear Station, which are expected to return to commercial service in the first half of 2015, according to the TradeTech latest forecast.
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