Matched conversion sales in the nuclear fuel market

The negotiations leading up to the Suspension Agreement with Russia focused solely on uranium and SWU, leaving conversion in its traditional role as the overlooked constituent of the fuel cycle. In fact, the initial agreement did not even distinguish U3O8 from UF6; it effectively ignored the conversion component contained in UF6 and the possibility of matched conversion sales. After some criticism from ConverDyn and others, The US Department of Commerce issued a clarification, confirming that all three major components of the fuel cycle can be sold under matched sales agreements. However, matched conversion sales remain somewhat of an enigma as few have been done and the logistics are poorly understood. Nonetheless, in a conversion market where supply and demand are closely balanced, secondary supplies, including those from matched sales, will likely play an important role in the evolution of conversion prices