DENVER, CO -- (Marketwired) -- 01/02/15 -- While TradeTech's Uranium Spot Price Indicator(1) (Bloomberg: TDTC) climbed to a 26-month high of US$44.00 per pound uranium oxide (U3O8) in November, market activity declined and the spot price fell throughout December to end 2014 at $35.30 -- only $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 gaining momentum in Asia. In November, Japan's 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 TradeTech's latest forecast.
(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.
About TradeTech
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.
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