|Nuclear fuels is a unique market. Supply is tightly controlled and in the hands of a limited number of companies. However, the fuel cycle is complex and involves an increasing variety of participants. The raw material is mined by the producer and then converted and enriched by tightly regulated companies, often associated with national nuclear energy programs. Yet another company will complete fabrication of fuel rods, which are then consumed by the power plant.|
NUCLEAR FUEL CYCLE
The nuclear fuels market has historically been very stable. Procurement was predominantly done through formal requests for proposals (RFPs) to the major producers, and there was very little hedging taking place. The uranium spot price, however, experienced a dramatic increase in price beginning in 2004, highlighting the need for nuclear fuel risk management. Producers, end-users, and marketers can use the over-the-counter trading market to execute a host of innovative transaction structures to meet their hedging needs.
> Find information on the various markets in nuclear fuels.
Evolution Markets is well positioned to assist market participants such as suppliers and end users in addressing their risk in the increasingly volatile nuclear fuels market. In addition, we have the in-depth market knowledge to facilitate the entry of new counterparties, including banks, hedge funds, and other financial sector players. Evolution Markets' experienced brokers provide a diverse set of market-based services, ranging from trade facilitation to risk management advisory.