In last quarter’s market update, issued in late November, we stressed that the $28.00 spot price level would be a key resistance point going into 2021. Moreover, we cautioned that any demand weakness witnessed in the first quarter of 2021 could set the stage for greater competition among sellers to move pounds, thus leading to more aggressive pricing in the spot market. The spot price trekked higher from $29.45 at the end of November to reach a high of $30.05 during the first week of January 2021, aided partly by Cameco’s decision to again suspend Cigar Lake production due to the proliferation of positive COVID-19 cases at the mine site. However, after increased demand failed to materialize, the spot price began slipping by mid-January to close the month down $0.55 at $29.50.
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