30 Aug 2024 | 16:08 UTC

Platts proposes uranium conversion assessment, extended UF6 pricing

Platts, part of S&P Global Commodity Insights, proposes to add a daily uranium conversion spot price assessment and to extend its uranium hexafluoride, or UF6, spot price assessment, effective Nov. 1, 2024.

Natural UF6, the second industrial step of processing uranium into nuclear reactor fuel, results from the chemical conversion of uranium into a gas form that is used as feed for uranium enrichment plants. Market participants have sought greater transparency of conversion and spot UF6 pricing following the Russian invasion of Ukraine, as some participants have moved away from Russia as a supplier.

The assessment would be for spot uranium conversion services at a North American facility over the following 12 months. The assessment will be denominated in US dollars per kilogram of uranium content ($/kgU), with a minimum lot size of 25,000 kgU.

The assessment would reflect a 1 pm US Eastern timestamp and follow the US publication schedule.

Any information with different location, volumes or terms may be considered for assessment purposes, subject to normalization. Platts will consider information from adjacent markets, including UF6, in its assessment.

Platts also proposes to extend its assessments for UF6, from the current three months to 12 months. For example, the assessment at launch would assess monthly prices for November 2024 through October 2025.

The new UF6 assessments would also reflect delivery of at least 25,000 kgU to a US enrichment plant, with a 1 pm US Eastern timestamp and follow the US publication schedule.

Platts would survey the market to inform spot UF6 prices across the longer 12-month delivery period and consider adjacent markets, such as U3O8prices and conversion costs.

Pricing information reflected in the final assessments of conversion and UF6 would include, but would not be limited to, firm bids, offers and trades, as well as indicative values from market participants.

The new prices would be published on fixed pages PEA0308 and PEP0308 as well as weekly in Platts Nuclear Fuel and the Nuclear Fuel Uranium Pricing Supplement.

Please send any comments or questions to nucleareditorial@spglobal.com and pricegroup@spglobal.com by Sept. 27, 2024.

For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing. Platts will consider all comments received and will make comments not marked as confidential available upon request.