The summer lull for uranium continues, with spot uranium prices range bound for another week. Transactions are being impacted fewer market participants during the last few weeks of summer vacation season.
The lack of participants led to four transactions being completed in the spot market last week, according to TradeTech, for a total of 400,000 lbs of uranium traded. TradeTech’s weekly spot price indicator was unable to break past the $20 lb price point, again.
Meanwhile, the US nuclear power industry experienced another setback this week after Duke Energy Corp. announced Tuesday it will no longer move forward with the proposed Levy County Nuclear Power Plant. This is just the latest setback for the American nuclear power industry. Companies are deciding to shelve their nuclear power ambitions due to cost over runs. While nuclear power is a cost effective means for electricity generation around the world, in the U.S., the availability of cheap natural gas makes nuclear power less competitive.
But, last week the U.S. Department of Energy released a report that called for the government to increase incentives to build nuclear power plants. The report voiced the concern that if the U.S. falls behind in nuclear technology that its grid stability will suffer. There is also the argument that this is a matter of national security.
North America is home to many world class uranium deposits, and a local nuclear power industry would be a benefit to the miners operating these assets.