Uranium spot prices have risen for seven straight weeks, but the ascent has been very modest with TradeTech’s weekly spot price indicator appreciating only 4.3% over the period.
As the commodity ascended, $20 per lb. was the point of resistance in past weeks, but that level was eventually breached and now $20.50 per lb is acting as the next resistance point. While buyers are showing interest in buying uranium when sellers push for prices above $20.50 per lb this interest is drying up.
The reason for the lackluster movement in the market remains the near-term uncertainty for demand. While positive expectations for uranium are being supported by the large amount of nuclear power plants under construction in emerging markets such as China, not everyone is eager to jump on the nuclear power bandwagon.
South Korea’s new leader is looking at phasing out nuclear energy as a source of power and has halted all new nuclear reactor construction. This move has been met with opposition, with even environmentalists saying that without nuclear power the country may not be able to meet its emissions reduction targets as part of the Paris Climate Accord.
Also, the new French government set a target of reducing nuclear power in France’s energy mix to 50% by 2025.
While some countries are moving away from nuclear power, others are fully embracing it. China has dozens of nuclear power plants in the construction and planning phases, and India has continued to ramp up its nuclear power plans. In recent developments, the nuclear cooperation agreement signed between India and Japan has now entered into force. The agreement will mean that India can use Japan’s technology to advance its nuclear power sector.