Uranium market from a US producer's viewpoint

Conference · Thu Jan 01 04:00:00 EST 1987 · Trans. Am. Nucl. Soc.; (United States)

OSTI ID:5535140

Mays, W M

This paper presents the opinion of a US in situ uranium producer concerning the uranium market. Particular emphasis is placed on the impact of the procurement practices of the US nuclear power industry on the stability of the uranium market and the reliability of long-term uranium supplies. Since 1979 the uranium market has been a buyer's market. The US utility industry has insisted on contract terms relating the long-term contract price of uranium to the spot-market price, as is characterized by the Nuexco exchange value. This practice was intended to ensure that utilities would not pay more than the current spot-market price for their uranium supplies so that they could not be criticized by the public utility commission in their states or by the utility manager. This practice originated in the excessive prices, which were generated by the perceptions and contract terms in practice in the late 1970s when uranium supplies were perceived to be inadequate for the projected demand. The excessive prices and production rates of the late 1970s resulted in excessive inventory levels and precipitated the fall in the uranium price to current levels. The current spot-market price is a result of the marketing of distressed inventory by utilities and producers. These inventory sales and the competition from one very high grade and very large uranium mine have resulted in prices that are too low to sustain any significant level of supply worldwide.

• OSTI ID: 5535140
• Report Number(s): CONF-870601-
• Conference Information: Journal Name: Trans. Am. Nucl. Soc.; (United States) Journal Volume: 54
• Country of Publication: United States
• Language: English

Related Subjects

051000* -- Nuclear Fuels-- Economic
Industrial
& Business Aspects
11 NUCLEAR FUEL CYCLE AND FUEL MATERIALS
ACTINIDES
ELEMENTS
FORECASTING
MARKET
METALS
NORTH AMERICA
NUCLEAR FACILITIES
NUCLEAR POWER PLANTS
POWER PLANTS
PROCUREMENT
PRODUCTION
RELIABILITY
SUPPLY AND DEMAND
THERMAL POWER PLANTS
URANIUM
USA