Long-term Uranium Price
Uranium is not traded on an organized commodity exchange such as the London Metal Exchange. Instead buyers and sellers typically negotiate contracts and pricing privately. It is estimated that 80% to 85% of all uranium has been sold under long-term, multi-year contracts with deliveries starting 1 to 3 years after the contract is made. Long-term contract terms range from 2 to 10 years, but typically run 3 to 5 years, with the first delivery occurring within 24 months of contract award. They may also include a clause that allows the buyer to vary the size of each delivery within prescribed limits. For example, delivery quantities may vary from the prescribed annual volume by plus or minus 15%.
Uranium Spot Price
The remaining 15-20% of uranium that is bought and sold is largely based on the spot price. A spot market contract usually consists of just one delivery and is typically priced at or near the published spot market price at the time of purchase. Uranium price indicators accepted by the nuclear industry are published by independent market consultants Ux Consulting and TradeTech. The uranium spot price is typically more volatile than the long-term uranium price.
In 2007 the New York Mercantile Exchange announced a 10-year agreement to provide for the trade of on and off exchange uranium futures contracts. Uranium futures are traded under ticker symbol UX in U.S. dollars and cents per pound.