Trends in natural uranium contracting

Journal Article · Wed Jun 01 04:00:00 EDT 1988 · NUEXCO. Monthly Report to the Nuclear Industry

OSTI ID:104843

Natural uranium contracting practices have undergone a significant transformation since the late 1970s, largely due to the shift from a seller`s market to a buyer`s market. The turnabout resulted primarily from the inadvertent buildup of high inventory levels in the late 1970s due to widespread reactor cancellations, the substantial decline in projections of uranium demand, and the resultant excess supply capability of uranium producers. The precipitous price decline, from $$43.40 per pound U{sub 3}O{sub 8} in mid-1978 to $$17.00 in August 1982, with interim fluctuations, created a very different environment for purchasers, who now have strongly competing supply sources from which to choose and who can consequently benefit from more favorable contract provisions being offered. Although there are many common trends in natural uranium contracting, there remains a great disparity among regional preferences for certain terms, particularly regarding flexibility in pricing and delivery terms. This article presents some of Nuexco`s findings on the evolution of long-term uranium procurement and supply, based on uranium transaction records for the period 1980-1987. The study focuses on arms-length natural uranium transactions (concentrates or UF{sub 6}) involving term contracts.

• OSTI ID: 104843
• Journal Information: NUEXCO. Monthly Report to the Nuclear Industry, Journal Name: NUEXCO. Monthly Report to the Nuclear Industry Journal Issue: 238; ISSN 0742-4582; ISSN NUEXD3
• Country of Publication: United States
• Language: English

Related Subjects

05 NUCLEAR FUELS
CONTRACTS
MARKET
NATURAL URANIUM
PRICES
PROCUREMENT
URANIUM OXIDES U3O8