demand exceeds supplyU.S. EIA reports 27m lbs. of unfilled uranium contracts for 2007 to 2016
In their annual uranium marketing report, the U.S. Energy Information Administration determined a total of 27 million pounds of unfilled uranium contracts exist. Meanwhile, the average weighted price per pound price increased 30%.
Friday , 18 May 2007
RENO, NV -
The U.S. Energy Information Administration reported Wednesday that owners and operators of U.S. civilian nuclear power reactors purchased a total of 67 million pounds U3O8E (uranium oxide equivalent) of deliveries from U.S. and foreign suppliers during 2006.
As of the end of 2006, total unfilled uranium requirements for civilian reactors for the period of 2007 through 2016 came to 276 million pounds.
Approximately 16% of the uranium purchased originated in the United States. The weighted average price of $18.61/lb increased 30% over the 2005 price, according to the EIA. The agency is the supplier of official energy statistics from the U.S. government.
Foreign uranium accounted for 56 million pounds or 84% of the deliveries at an average price of $19.31/lb., a 30% increase over 2005.
During 2006, 10% of the uranium purchased was through spot contracts, with the remaining 90% involving long-term contracts. The EIA said the average price for the spot contracts was $39.48/lb, but decreased to $16.38/lb for long-term contracts.
For the 26 new purchase contracts signed in 2006, which included 23 new spot contracts and three new long-term contracts, the uranium delivered in 2006 was 6 million pounds and the average price was $43.77 per pound.
Contracted deliveries and unfilled requirements combined represent the maximum represent the maximum anticipated market requirement for uranium. The EIA said the total 10-year maximum requirements, as of year-end of 2006, were 480 million pounds U3O8E.
Last year owners and operators of U.S. civilian nuclear power reactors delivered 57 million pounds of natural uranium feed to U.S. and foreign enrichers. Foreign sales totaled 19 million pounds with the average price of $32.87 per pound, a 59% increase over the 2005 price.
he EIA said commercial uranium inventories held by owners and operators of U.S. civilian nuclear power reactors was 78 million pounds U3O8E, an increase of 21% by year-end 2005. Overall, the combined U.S. commercial inventory (including inventories owned by U.S. brokers, converters, enrichers, fabricators, production and traders) was 107 million pounds as of the end of 2006.
The current uranium spot price as quoted by Ux Consulting Company is $120/lb