Press Release on Prices for Kazakh Uranium Supplied to US and EU Markets
31.10.2007The annual report of U.S. Department of Energy and Euratom Supply Agency on uranium sales at US and EU markets in 2006 has been distributed.
According to U.S .Department of Energy weighted average price for Kazakh uranium supplied to US market is one of the highest and amounts to 25,74 $ per pound.
For comparison the uranium prices of other countries – large uranium producers are as following:
- Australia - 21,23 $ per pound;
- South West Africa – 18,46 $ per pound;
- Canada – 17,61 $ per pound;
- Uzbekistan – 15,89 $ per pound.
With reference to information of Euratom Supply Agency the weighted average price for uranium imported to European Union in 2006 is 18,55 $ per pound. But Kazatomprom delivered uranium in 2006 to European Union at average price of 28,80 $ per U3O8 pound.
As uranium is not stock market commodity, price forming principle at the uranium market differs from price forming structure for oil or non-ferrous metals. There is no single trading floor in the world where major part of uranium passes through. Its largest part (above 90%) is sold by means of closed transactions between suppliers and uranium end users under the long-term contracts. Approximately 5-8 % of uranium used in nuclear power plants is traded at the so called spot market (single sales market). Spot market prices are open and public source of uranium price information, however due to small sales quantity they do not reflect actual uranium cost in the world.
The weighted average prices for imported uranium are given in annual reports of US Department of Energy and Euratom Supply Agency respectively for US and EU based on customs declarations data. These reports are the most reliable and complete information sources with respect to uranium world prices.
USA and Europe are chief uranium users in the world – about 60% of worldwide uranium consumption.
