Publication Laka-library:
Annual report and accounts 2020

DateMarch 2021

From the publication:

Global enrichment market

In the US and Europe, nuclear generated electricity output has closely 
followed last year’s trends, albeit lower due to depressed electricity 
demand during the pandemic. 

The impact has been particularly felt in Europe, where a few nuclear 
reactors were idle due to low power prices or reduced demand.

The market price for enrichment has continued to increase in 2020. Prices 
are back above $50 per SWU from their low point of $34. Uranium prices also 
increased as a result of COVID-19 measures and a reaction to the production 
restrictions and mothballing of mines and milling operations. 

Despite this, our view is that market prices need to increase in the long run. 
They are not sufficient for investment in new enrichment plants or reinvestment 
in existing facilities. While we continue to significantly reduce operating and 
capex costs, the investment required or managing depleted uranium and the 
eventual dismantling and decommissioning of our plants continues to rise. 

However, we remain positive about the future and Urenco’s long term 
sustainability, and in 2020 we increasingly saw long dated business being 
contracted at price levels which will enable us to plan for reinvestment in our 
plants. Nuclear is also the second largest source of clean energy used today and
 will continue to play a critical role in providing baseload electricity. 
Current and next generation reactors require diverse and reliable uranium 
enrichment services, which Urenco has a key role in providing.