Marketing keeps enrichment market alive

A resurgence of interest by utilities in the uranium market has occured, as a result of marketing efforts by primary suppliers -especially the US DoE and Russia's Techsnabexport (TENEX). Price, contract flexibility and reliability of supply have been the dominant factors governing utility purchase considerations. Many US utilities have sought to diversify their enrichment supply sources for economic reasons. Low spot market prices have encouraged major suppliers to be more competitive and to offer attractive prices in the long-term market. Although Eurodif and Urenco are at a disadvantage because of exchange rates, all of the primary suppliers have focused on the post-1995 period -especially in the USA where large unfulfilled requirements remain. The DoEs success in capturing part of this unfilled demand proves it can be competitive. The emergence and success of TENEX as a supplier indicates buyer willingness to explore new supply sources. However, the future success of all enrichment suppliers depends on their ability to adapt to a changing market by reducing excess capacity, controlling costs and appealing to utilities with competitive contracts. (Author)