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General Market Commentary
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General Energy
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General Market Commentary
Uranium Price Update: A Return to Health
There’s been growing talk around uranium and its potential for a comeback. Over the last month and a half, uranium spot prices have been balancing around a two-and-a-half-year high, rising by 30% from April according to the Financial Times report.
Changes from some of uranium’s largest producers have been a major driver behind the price rise. But that could soon be set to reverse.
The spot price of uranium of September was US$27.50, which is up 25% since January’s spot price of US$21.88.
Uranium prices set to exceed average sales
It seems that uranium is returning to health after suffering weak demand in the wake of Japan’s Fukushima accident in 2011.
Although the biggest news surrounding uranium prices seemed to be at odds with one another — on one side Kazakhstan’s state-owned mining giant announced plans, while Spain is set to block a Berkeley Uranium mine project.
It’s a huge setback for Australian mining company Berkeley, who will bear the brunt of impacts from the Spanish government’s refusal to give permits to the European Union’s only open-cast mine.
Despite being granted preliminary approval back in early 2013, it has faced opposition. In order for the mine to be operational, Berkeley must wait until nuclear authority release its report.
According to CNBC, a government source said, ‘the authorisation to build the mine is only possible when the nuclear authority has handed over its report, which is still a long way’.
While this is bad for Berkeley it could mean big things for the price of uranium, as it restricts supply. This means demand will be fraught with little inventory.
Further restricting supply, a neighbouring mine to the proposed one recently closed after failing to create a profit.