This chart should get more air time.
"Ultimately, the utilities have no other choice but to start contracting—and soon—as their uncovered uranium needs exiting 2020 exceed 20%. From the order date, it takes utilities 18–24 months to get the fuel." - Mike Alkin @FootnotesFirst
"Ultimately, the utilities have no other choice but to start contracting—and soon—as their uncovered uranium needs exiting 2020 exceed 20%. From the order date, it takes utilities 18–24 months to get the fuel." - Mike Alkin @FootnotesFirst
This is nice but why hasn't spot moved?
"Because spot is a bullshit market"
65-70% of it is just trader churn for example only 10mlbs was physically delivered in 2019.
Term price is the important one
Well that isn't moving either its stuck at 32lb!
It's stuck there because
"Because spot is a bullshit market"
65-70% of it is just trader churn for example only 10mlbs was physically delivered in 2019.
Term price is the important one
Well that isn't moving either its stuck at 32lb!
It's stuck there because
All the term deals being done have non-disclosure clauses that are difficult to remove
So the term prices aren't reported
The only way we hear about them are via calls mentioning they are signing contracts with a "4 handle"
What changes this?
So the term prices aren't reported
The only way we hear about them are via calls mentioning they are signing contracts with a "4 handle"
What changes this?
When it changes to a large number of contracts being signed the price reporter has no choice but to lift the term price
We also need a sentiment switch with utility buyers as the US nuclear fleet consumes 50mlbs of U/yr of which they have been underbuying by 20% or 10mlbs/yr
We also need a sentiment switch with utility buyers as the US nuclear fleet consumes 50mlbs of U/yr of which they have been underbuying by 20% or 10mlbs/yr
US utilities can't keep drawing down inventories as security of supply is everything for utilities.
All they need to do is to switch from underbuying to full coverage and the 10mlbs will have a dramatic effect on the 20mlb deficit the uranium market is currently running.
All they need to do is to switch from underbuying to full coverage and the 10mlbs will have a dramatic effect on the 20mlb deficit the uranium market is currently running.
