TradeTech-Uranium.Info - News

TradeTech Uranium Price Rebounds

Denver, CO October 15, 2007— TradeTech’s spot uranium price rose to US$78 per pound uranium oxide (U3O8)—a $3 increase that followed 16 weeks of flat or falling prices. The uranium spot market price had been falling since reaching a peak of $138 in June, but now appears to be strengthening.

TradeTech’s weekly spot price increased four percent on October 12, as buyers began re-entering the market. The uranium price has recorded soaring prices over the past two years, as investor interest in the market surged and near-term supplies remained thin.

However, as the uranium price rose to record levels, buyers retreated. As a result, a number of sellers motivated by cash needs, lowered offer prices or accepted below current market bids in order to secure sales. These sellers have now successfully placed the majority of this material and appear to have satisfied their near-term requirements. “With this supply removed from the market, sellers, sensing that the market has reached an inflection point are cautiously moving their offer prices up,” TradeTech President Treva Klingbiel stated. “All current spot demand remains discretionary, but since the price declines of the past few months have abated, buyers and sellers appear to have found a price level where transactions can be concluded,” Klingbiel added.

TradeTech publishes the Nuclear Market Review each Friday evening, which includes TradeTech’s uranium spot price indicator, uranium trading activity, industry news, and market data. TradeTech also publishes The Nuclear Review, a monthly trade publication dedicated to the international uranium and nuclear energy industry.

TradeTech, along with its predecessor companies–NUEXCO Information Services, CONCORD Information Services, and CONCORD Trading Company–has supported the uranium and nuclear fuel cycle industry for more than 35 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 independent market consulting and services, and maintains an extensive information database on these industries.

For general and media inquiries contact:
TradeTech
600 Seventeenth Street
Suite 720 South
Denver, CO 80202
United States

Tel: +1 (303) 573-3530
Fax: +1 (303) 573-3531
info@tradetech.com

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TradeTech Uranium Price Climbs to Record High

Denver, CO May 5, 2007— The uranium spot market price soared to US$120 per pound uranium oxide (U3O8)—setting an all-time record price as the market cautiously waits for uranium futures to begin trading on May 7.

TradeTech’s weekly spot price jumped six percent on May 4, just days before the debut of NYMEX uranium futures trading. It is the latest in a series of record price levels that have occurred over the past two years, as investor interest in the market surged and near-term uranium supplies remained thin.

The spot uranium market has been quiet since the mid-April announcement that NYMEX would launch a uranium futures contract. “Sellers, in particular, have been reluctant to commit to sales based on market-related pricing terms without a clear understanding of whether the financially settled futures contract would reflect prices in the physical market,” TradeTech President Treva Klingbiel stated. “And, the potential auction by a US producer further encouraged a ‘wait and see’ attitude by several potential sellers,” Klingbiel added.

Experienced players in the uranium market remain skeptical about futures trading, as they wait to see if it will bring increased transparency and liquidity to a market that has been traditionally dominated by end users, such as electric utilities and uranium producers.

For general and media inquiries contact:
TradeTech
600 Seventeenth Street
Suite 720 South
Denver, CO 80202
United States

Tel: +1 (303) 573-3530
Fax: +1 (303) 573-3531
info@tradetech.com

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Uranium Price Reaches All-Time High--The Outlook for Nuclear Power and Uranium Demand

Denver, Colorado, March 9, 2007--The following is an excerpt of a speech presented by TradeTech President Treva Klingbiel on February 27, 2007, during the SME Annual Meeting & Exhibit and the 109th National Western Mining Conference in Denver, Colorado.

Today’s uranium spot market price of US$85 per pound uranium oxide (U3O8) is the highest since prices were first published in 1968.

The spot price for uranium has increased dramatically over the past two years in this demand-driven market. The fundamental requirements for uranium are not determined by price, but rather by the operational needs of the power plants using uranium fuel. Presently, there are 435 nuclear power plants operating in 30 countries that require uranium to generate electricity. And, there exists strong growth potential for nuclear capacity worldwide. Outstanding performance and concerns about greenhouse gases are primary factors supporting the growth of nuclear power, according to The Outlook for Nuclear Power and Uranium Demand, by TradeTech President Treva Klingbiel.

Performance of commercial reactors has improved significantly over the past two decades. The fleet average capacity factor has improved from less than 60 percent to near 90 percent, which is equivalent to adding 50 percent more nuclear-generating capacity (Figure 1).

Nuclear capacity is also on the rise due to new reactor construction and license renewals for reactors that are currently operating. Twenty-nine new nuclear plants are under construction 12 countries. And, in the USA, 48 nuclear plants have received license renewals, with 34 more expected. In the Far East, China’s emergence as a market economy over the past decade has led that country to seek new electricity generation capacity to fuel growing demand. Given China’s ambitious plans for new nuclear capacity, it is seeking a stable and secure source of uranium for its reactors (Figure 2).

For general and media inquiries contact:
TradeTech
600 Seventeenth Street
Suite 720 South
Denver, CO 80202
United States

Tel: +1 (303) 573-3530
Fax: +1 (303) 573-3531
info@tradetech.com

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TradeTech and Spectron Energy Inc. Announce Business Alliance

Denver, Colorado, October 20, 2006—TradeTech and Spectron Energy Inc. have entered into an exclusive alliance agreement to share their expertise in jointly marketing the companies’ products and services to the international nuclear fuel industry.

TradeTech is widely recognized for its expertise in trading activities and its comprehensive knowledge of the technical, economic, and political factors affecting the nuclear energy industry. The company provides expert market consulting, advises participants in the buying and selling of uranium products and services, and maintains an extensive information database on these industries. TradeTech’s Nuclear Market Review provides an extensive array of uranium price indicators, and its monthly publication, The Nuclear Review, has been a source of key market information to the international uranium and nuclear energy industries since 1968. “TradeTech is excited about the opportunity to expand our unique services within the nuclear energy industry while partnering with a leading organization in the trading marketplace,” said Gene Clark, TradeTech’s Chief Executive Officer.

Spectron Energy Inc., a US subsidiary of Spectron Group plc, is a leading, specialized provider of services to the energy trading industry. It provides a neutral marketplace for OTC transactions between wholesale clients in natural gas, electricity, crude oil, petroleum products, coal, weather and environmental products. Spectron has developed into a diversified provider of services to the energy trading industry, predominantly in Europe as well as in the USA and Asia. Its clients include many of the world's largest energy producers and marketers, as well as the energy trading departments of large financial institutions. The Group has enjoyed rapid growth, as energy trading volumes in Spectron’s key markets have grown significantly in recent years due to deregulation in the energy industry. “Our goal through this alliance is to provide an expanded range of trading opportunities and market mechanisms to the financial and nuclear fuel communities, as we have been able to accomplish in other energy markets,” Richard Frape, Director of Market Services at Spectron Group plc. stated.

For general and media inquiries contact:

TradeTech
Dominion Plaza, Suite 720 South
600 Seventeenth Street
Denver, CO 80202
USA
Phone: + 1 (303) 573-3530
Fax: + 1 (303) 573-3531
info@tradetech.com

Spectron
Richard Frape
Spectron Group plc
4 Grosvenor Place
London SW1X 7DL
United Kingdom
Phone: + 44 (0) 207-074-2008
Fax: + 44 (0) 207-235-7153
richard.frape@spectrongroup.com

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Uranium Enrichment – What’s Driving Prices Higher?

Denver, Colorado, March 31, 2006--As global interest in nuclear power continues to peak, increased demand for nuclear fuel is triggering higher uranium and enrichment prices. TradeTech’s uranium spot price climbed to $41 this month, while the long-term price for uranium enrichment rose for the third consecutive month to $122 per SWU (Separative Work Unit)--a sharp contrast to last year when enrichment prices remained flat at $113 per SWU.

The price of uranium, used to fuel nuclear power plants that generate about 16 percent of the world's electricity, has increased significantly in the past year due to demand from nuclear utilities that rose faster than mine production and drew down stockpiles. Similar to the uranium market, enrichment prices are experiencing upward pressure due to strong demand from the nuclear energy industry. On a worldwide basis, total uranium enrichment requirements increase gradually through 2015 to about 55 million SWU per year by the end of the period, according to TradeTech’s "Uranium and Enrichment Industry 2006 Market Report."

“Unfilled uranium enrichment requirements increase in an almost linear fashion throughout the period, reaching about 60 percent of requirements for the year 2012,” said R. Gene Clark, chief executive officer of TradeTech. The term unfilled requirements refers to the portion of requirements over a given period that, as of a given date, is not accounted for after the use of inventory and future deliveries under then-existing contracts. As such, it is the most relevant measure of future market activity--the amount of enrichment that must yet be procured in order to meet reactor requirements.

Today’s worldwide enrichment capacity exceeds requirements by one-third, but not all capacity is operable. In the USA, for example, USEC Inc.’s Portsmouth plant is in cold shutdown and its Paducah plant is not licensed to operate above 8 million SWU, according to the report.

“The Western market is in a precarious supply situation. As Western requirements grow, Western capacity is not planned to grow sufficiently to significantly change this shortfall situation,” Clark added.

TradeTech’s "Uranium and Enrichment Industry 2006 Market Report" is a comprehensive study that discusses how the market is preparing to address the current supply deficit and the effect on enrichment prices as the market attempts to bridge the gap between today’s shortfall and future enrichment capacity expansion.

Editor’s Note: Uranium enrichment is a key step in transforming natural uranium into nuclear fuel for electricity production. It involves the process of increasing the concentration of U-235 and decreasing that of U-238. Uranium enrichment is sold as separative work units (SWU), the level of effort required to increase the concentration of U-235 in natural uranium.

Uranium Price Reaches $40 – Can the Market Sustain this Landmark Price?

Denver, Colorado, March 10, 2006--The spot market price for uranium rose to US$40 per pound uranium oxide (U3O8) today—the first time since January 1980 that the uranium market has seen a spot price reach this level.

The uranium price first climbed to $40 per pound U3O8 in April 1976 and remained in the $40 range until January 1980. The market in the late 1970s was considerably different than today’s uranium market, which begs the question: Is today’s $40 price sustainable? “We think it is,” said Gene Clark, chief executive officer of TradeTech, a nuclear energy market consultant. “After years of industry consolidation and tight financial conditions, uranium exploration has suffered and there will be a time lag, perhaps as long as five to seven years, before the supply side can fully respond. Thus, secondary supplies (primarily uranium inventories) will need to continue filling the ‘supply gap.’ With little strategic stock to mitigate supply disruptions, prices can rise dramatically, and in fact, have done so,” Clark advised.

The biggest difference in the uranium market today is that the supply/demand outlook is much clearer than it was a quarter century ago, based on more realistic contract terms and uranium requirements. “The challenge will be to bring more uranium production online to assure market balance,” Clark stated.

A number of factors contributed to the price rise of the late 1970s, including aggressive nuclear energy plans and a switch to fixed-commitment uranium enrichment contracts that locked utilities into firm commitments for a rolling 10-year period. During this time, large uranium inventories accumulated. In fact, until 1985 the Western uranium industry was producing material much faster than nuclear power plants and military programs were consuming it (Figure 1). However, by the 1980s uranium from canceled and deferred nuclear plants flooded the market. Uranium prices slid throughout the decade with few respites, leaving the price below $10 per pound U3O8 by year-end 1989.

As uranium prices fell, producers began curtailing operations or exiting the business entirely, leaving only a few actively involved in uranium mining and causing uranium inventories to shrink significantly. Since 1990 uranium requirements have outstripped uranium production. World uranium requirements are expected to increase steadily throughout the next decade to a peak of over 200 million pounds U3O8, according to TradeTech. Uranium producers are gearing up for this added demand. A number of existing producers are planning for expansion, while new junior producers are preparing for uranium exploration and production.

TradeTech, and its predecessor companies--NUEXCO Information Services, CONCORD Information Services, and CONCORD Trading Company--has supported the uranium and nuclear fuel cycle industry for more than 35 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. TradeTech publishes the Nuclear Market Review each Friday, and The Nuclear Review, a monthly trade publication dedicated to the international uranium and nuclear energy industry. [top]

For general and media inquiries contact:
TradeTech
600 Seventeenth Street
Suite 720 South
Denver, CO 80202
United States

Tel: 1 (303) 573-3530
Fax: 1 (303) 573-3531
info@tradetech.com

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Uranium Prices Continue to Climb

Denver, Colorado, February 2, 2006--Prices in the uranium spot market rose steadily throughout January, continuing a trend that led to a record price increase last year. The spot market price climbed to $37.50 per pound U3O8 on January 31, as near-term uranium supply remains extremely thin.

The year 2005 was a watershed year for the uranium market, marking the most dramatic rise in the spot uranium price since 1975. Prices at the beginning of the year were US$21.20 per pound U3O8; however, by December 31, the spot price had risen by more than $15, to $36.50 per pound U3O8.

“The shift from a buyers’ market to a sellers’ market that began in 2003 gained new momentum in 2005. A driving force behind this increase was the entry into the market of a new type of buyer--the investor/speculator,” said Treva Klingbiel, president of TradeTech, a nuclear energy market consultant. Total spot volume for 2005 was slightly less than 30 million pounds U3O8 equivalent, and investors accounted for over 36 percent of all spot uranium purchases (approximately 11 million pounds U3O8).

Unlike the buyer category, seller categories changed little in 2005. Traders and intermediaries continue to dominate as sellers in the spot uranium market, accounting for more than 50 percent of all sales concluded last year, according to TradeTech. “One question facing market participants as 2006 begins is whether investors will remain a major influence on demand and continue to exert upward pressure on prices,” Klingbiel said.

For general and media inquiries contact:
TradeTech
600 Seventeenth Street
Suite 720 South
Denver, CO 80202
United States

Tel: 1 (303) 573-3530
Fax: 1 (303) 573-3531
info@tradetech.com

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The Nuclear Review Highlights
Bulgaria’s Commitment to Nuclear Energy

Denver, Colorado, October 31, 2005--As Bulgaria prepares to join the European Union (EU) in 2007, the country’s nuclear energy sector is adapting to changes set forth in its EU accession agreement.

The October issue of The Nuclear Review, published by TradeTech, highlights the nuclear energy issues facing Bulgaria today--namely, the closure of four of the six operating reactors at its sole nuclear power station at Kozloduy. Two reactors at the station have already been taken out of service, with two more scheduled for shutdown in 2006.

With the Kozloduy station positioned as a primary energy supplier for the country, as well as a significant energy exporter to surrounding Balkan states, the focus has turned to filling the energy gap left by these reactor closures. A project to revive the abandoned Belene nuclear plant is gearing up for construction in 2006, with the first reactor scheduled for operation in 2011.

The complete feature article may be purchased for US$20. Click here to order.

For general and media inquiries contact:
TradeTech
600 Seventeenth Street
Suite 720 South
Denver, CO 80202
United States

Tel: 1 (303) 573-3530
Fax: 1 (303) 573-3531
info@tradetech.com

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TradeTech Establishes North Carolina Office

Denver, Colorado, October 13, 2005--TradeTech has established a new US office in Chapel Hill, North Carolina, effective immediately. Gene Clark, TradeTech's chief executive officer, will manage the new office, the company announced today.

All inquiries to the Chapel Hill office should be directed as follows:
TradeTech
1289 N. Fordham Blvd.
Suite 202
Chapel Hill, NC 27514
United States

Tel: 1 (919) 933-7388
Fax: 1 (919) 933-6423
mail@tradetech.com ; Gene.Clark@tradetech.com

For general and media inquiries contact:
TradeTech
600 Seventeenth Street
Suite 720 South
Denver, CO 80202
United States

Tel: 1 (303) 573-3530
Fax: 1 (303) 573-3531
info@tradetech.com

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Uranium Market Transitions to Higher Prices and Tighter Supplies

Denver, Colorado, July 18, 2005--The following is an excerpt of a speech presented by TradeTech President Treva Klingbiel, at the July 2005 "US Women in Nuclear" conference in Atlanta, Georgia, sponsored by the Nuclear Energy Institute.

Over the past 18 months the price of uranium has risen dramatically. In fact, today's current uranium spot price of $29.50 per pound is the highest seen in the market in the last 25 years. Ms. Klingbiel cited economic, operations, and political events as reasons for this change in market direction, which have taken years to unfold.

"Today, the uranium market is truly a world market. Worldwide excess stocks of uranium have been greatly depleted over the past 15 years, with the exception of that contained in nuclear warheads, spent fuel, and enrichment tails; and, there are likely no ‘surprise supplies' of uranium to be found," Klingbiel said. Thus, the nuclear fuel market now has a "supply shortfall" and the uranium market is now driven much more by supply/demand fundamentals.

A buyers' market reined in the uranium market for some 15 years, generally sporting either steady but low prices or price declines throughout this time. These conditions thrived for so long as to create, perhaps, a bit of complacency on the part of buyers.

For the first time in decades, utilities are reconsidering their views regarding strategic inventory. When uranium was plentiful, the electric utilities did not feel compelled to maintain a large inventory. Now that uranium has entered a cycle where uranium supply becomes scarce and price is high, utilities will likely be implementing policies where their inventory will be increased. This is referred to in the industry as “discretionary” purchasing and exerts even more pressure on the market when it occurs.

Uranium production is expected to remain below 150 million pounds U3O8 per year until 2012, when it will rise unless the sale of weapons-derived material increases.

The uranium production sector is already gearing up for this additional demand. A number of existing uranium producers have announced plans for expansions, and there are announcements weekly of new “junior” producers preparing for future exploration and/or production. However, after years of consolidation and tight financial conditions, uranium exploration has suffered and there will likely be a time lag before the supply side can respond fully. Thus, “secondary” supply from sources such as additional inventory drawdown, the Russian HEU Feed Deal, and the use of tails or other military stocks will be necessary to fill the gap.

Uranium prices rose 225 percent from $8.85 in January 1990 to $29.00 in June 2005 and budget requirements for nuclear fuel have risen in tandem with prices. These cost increases, regardless of their connection to uncontrollable market factors can be serious issues for utilities worldwide seeking to remain competitive in an increasingly challenging environment.

For general and media inquiries contact:
TradeTech
600 Seventeenth Street
Suite 720 South
Denver, CO 80202
United States

Tel: 1 (303) 573-3530
Fax: 1 (303) 573-3531
info@tradetech.com

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