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DENVER, CO --(Marketwired - January 07, 2016) - Marginal dips and increases have characterized TradeTech's Uranium Spot Price Indicator1 (Bloomberg: TDTC), which remained flat throughout much of 2015, and ended the year at $34.20 per pound U3O8 -- $1.30 below the 2014 year-end price.
Intermediaries dominated the spot market last year as both buyers and sellers, with limited and often discretionary buying by utilities. Annual spot market volume totaled 45 million pounds U3O8 equivalent in 2015 -- up 15 percent from 2014 volume of approximately 39 million pounds U3O8 equivalent, but short of the historical high of 45.8 million pounds in 2011. "Following increased activity from all sectors and considerable market volatility in October, buying interest waned, especially among utilities, which had covered their needs for the year and the first quarter of 2016," 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 2016 and beyond," Klingbiel added.
While spot market prices and demand fluctuated, 2015 was a pivotal year for the uranium market as Japan restarted its first two nuclear plants since the March 2011 Fukushima accident and new reactor build projects gained momentum in Asia. TradeTech's Japanese reactor restart schedule forecasts that utilities may bring online 4 to 5 additional GWe of nuclear power capacity in 2016, starting with Kansai Electric Power Co.'s Takahama Units 3 and 4, which were approved for restart in December 2015. China also affirmed its commitment to nuclear power and continues to move forward with plans to build about seven new reactors annually between and 2030.
Spot uranium prices are expected to approach the $40 mark in the first quarter of 2016, while uranium demand is forecast to rise and surpass supply throughout much of 2016; supply responses in the second half of this year should bring the market closer to equilibrium, according to TradeTech's Uranium Market Study 2015 Issue 4.
1 TradeTech's U3O8 Spot Price Indicator reflects the company's judgment of the price at which spot and near-term transactions for significant quantities of natural uranium concentrates could be concluded, based on data from recently completed and/or pending transactions, and firm bids to buy and firm offers to sell uranium concentrates on the spot uranium market.
TradeTech and its predecessor companies, has supported the uranium and nuclear fuel cycle industry for more than 40 years, and is widely recognized for its expertise in trading activities and its comprehensive knowledge of the technical, economic, and political factors affecting this industry. TradeTech provides expert market consulting, participates in the buying and selling of uranium products and services, and maintains an extensive information database on these industries.
The company publishes the Nuclear Market Review (NMR), which reports TradeTech's Weekly U3O8 Spot Price Indicator, uranium trading activity, industry news, and market data. The monthly edition of the NMR includes TradeTech's monthly Market Values (Exchange Value, UF6 Value, Loan Rate, Conversion Value, SWU Value, and Transaction Value) and Mid- and Long-Term U3O8 Price Indicators, as well as price analysis, supply/demand data, and industry news. TradeTech also publishes The Nuclear Review, a monthly trade publication dedicated to the international nuclear power industry, and a quarterly Uranium Market Study, which provides analysis of the global uranium production industry, including spot- and long-term uranium price forecasts.