Uranium week: flat October, -10% last week

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Weekly reports | 11:56 a.m.

While the spot price of uranium fell -10% last week, Cameco reported a quarterly net loss due to lower revenues.

-The spot price of uranium drops by -10% over the week
-Cameco reports a quarterly loss
– Record spot volume over the last three months
– Yellow Cake PLC, listed in London, invests more in uranium

By Mark Woodruff

TradeTech monthly spot price The indicator changed little during October, increasing from US $ 0.8 / lb on September 30 to close October at US $ 43 / lb, the highest level the indicator has reached since January 2013 .

So far in 2021, the price has increased by 45%; it has increased by over 76% in the past 24 months. The October 31 level is almost 43% above the 2020 average of US $ 30.15 / lb.

The last few months have shown historic levels of volatility, with weekly fluctuations of 5-20% in the spot price becoming more common since the introduction of the purchase of physical holding funds, in addition to the increase in the activity of traders and producers in the markets this year.

The record volume in the spot uranium market over the past three months is directly linked to the launch of the Sprott Physical Uranium Trust (SPUT) in August, notes independent consultant TradeTech. The total volume accumulated by SPUT alone now totals 16.9 ml.

A total of 72 transactions, representing more than 12.5 ml of U3O8 equivalent, were recorded for the month of October, a total that was only exceeded by the previous two months of August (13.2 ml ) and September (14.5 ml) this year.

Medium and long-term uranium prices remained fairly stable in October despite the sharp fluctuations in the uranium spot price.

TradeTech futures price the indicators ended October at US $ 43.75 / lb (mid) and US $ 45 / lb (long), respectively. Both are unchanged over the past month as well as for the past week. The lack of predictability in the spot price of uranium has created a desire for utilities to hedge against price volatility in their futures contracts, TradeTech reports.


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