NYSEAM:UEC - Post by User
Post by
mangoeon Jun 02, 2024 10:20am
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Post# 36068188
ð¥May month-end #Uranium and #Nuclear fuel cycle prices & â
ð¥May month-end #Uranium and #Nuclear fuel cycle prices & â 
May month-end #Uranium and #Nuclear fuel cycle prices & data published by industry consultants TradeTech
signal increasing near & long-term demand and price pressure building for mined #U3O8:
#U3O8 prices were unchanged from April at $90/lb for Spot and a 16-year high of $80/lb for Long-term
Spot Conversion slid $1 to $58 but the Long-Term Contract price rose by $2 to a new high of $38
that signals increasing demand for conversion contracts which add more demand for #U3O8 feed
#UF6 was unchanged from April at $295 Spot enrichment SWU jumped +$10 to a new all-time industry high of $176
while the Long-term SWU contract price rose $2 to $160/lb, $5 short of its $165 peak in 2010. That signals increasing long-term demand for enriched uranium (EUP) which cascades down to more demand for both conversion and mined #U3O8 to feed enrichment contracts. 
Prices across the Nuclear fuel cycle continue to signal rising demand and upward price pressure for mined U3O8 for years to come. In the near-term, TradeTech reports that there is active Spot market demand of 6 Million lbs, more than double the 2.7 Million lbs recorded at the end of April
but sellers have only 3.3 Million lbs of active supply to offer, so are only able to meet 55% of demand. That sends a clear signal that the Spot price is set to move significantly higher when those buyers decide to chase the sellers to get their Spot purchase orders filled.
Spot #U3O8 sales in May totalled 4.1 Million lbs, of which 1.45 Million lbs were purchased by #SPUT
Remember!
#Nuclear utilities normally sign contracts for the manufacture of #Uranium fuel
starting with Fuel Assemblies then working backwards thru enrichment SWU, Conversion then finally mined #U3O8 needed to feed the whole cycle as last domino to fall in the contracts chain.
Rising demand for long-term SWU and Conversion contracts is a strong indication that there is a wave of supply contracts coming to secure the mined #U3O8 feed that they require, which will continue to support ongoing upward price momentum over the long term horizon.
The market price for enrichment SWU is a leading indicator for where the price of mined #U3O8 is heading!
IMHO, a rising SWU price tells U that the upward trend in the price of Spot #U3O8 will continue
and that any Spot price weakness due to short-term trading action by Spot traders is another opportunity to 'buy the dip'.
Conversely, when we begin to see SWU prices retreat then that, to me, signals to investors that it's time to start scaling out of U mining stocks.
As long as SWU prices are rising or holding steady there is a high probability that Spot #U3O8 and U mining stocks will continue to move higher. 
Bottom line: Nuclear fuel market data and signals continue to show that we're still in the early days of this unfolding uranium bull run.
