Uncertainty over uranium prices outlook

Despite an improved rebound in commodity prices, Uranium remains subdued, and Economic Association of Namibia (EAN) Director Klaus Schade has said the future of uranium prices is uncertain.

“Prices remain very low at about US$20 per pound; in fact they are hovering between US$20 and US$25 per pound since the beginning of the year. These are spot market prices and not contract prices which are usually very different from spot prices because customers would like to secure their supply,” he says. If the Uranium situation is to persist, opines the analyst, there is a danger of Namibia getting grounded as far as Uranium is concerned since contract prices will tend to adjust to the spot prices. Says Schade, “If you can buy Uranium or any other mineral on the sport market for lower prices, over time the contract prices will adjust to lower levels as well.