The global spot uranium price display as derived by industry consultant TradeTech had risen by US$1.50 over the end-April price to US$56.50/lb, having trade down to US$50 after the March tsunami damaged the Fukushima reactors and unexpectedly sparked a rethink on global nuclear energy policy. It appeared that order destruction was not as significant as a panicky market first assumed. But June has brought a dissimilar story.
TradeTech has marked its end-June spot cost indicator at US$51.50/lb, representing a 9% drop from May. The consultant notes there was a big hurry to sell in the last couple of days of June at a time when buyers are still uncertain over what path worldwide nuclear energy might take from here. One “aggressive” seller was looking to place material fast, but the fact remains that in the short expression at least, the supply-side looks overladen.
The US government is also affecting to re-enrich depleted tailings for sale to finance further clean-up projects, and traders assume that provide may come onto the market in coming months. Japan has shut down many of reactors and a few may never be restart, including the six at Fukushima, so stockpiled uranium inventories also add to latent near-term supply. There seems little reason for buyers not to reverse off in price.
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