Why are nuclear fuel prices fairly stable?

Question

What makes the prices of nuclear fuels (i.e. plutonium, uranium) stable? Are they that abundant?

Answer 1

The price of nuclear fuel is stable?

The price of U3O8 has gone from less than $10 (US) per pound in 2003 to $120 today. That's hardly what I would call stable.

Most nuclear reactors can tolerate a uranium fuel price of up to $300/lb before electricity production becomes uneconomic.

Plutonium is not a naturally occurring element; it is fabricated in a nuclear reactor so it doesn't have a "price" like most commodities. The only other radioactive element which has potential to generate nuclear electricity is thorium, but that technology seems a few years away yet.

An interesting fact - the vast majority, more than 90%, of uranium fuel is sold through long-term contracts from uranium mines, mostly in Canada, Australia, and Niger. Less than 10% of uranium is bought and sold on the spot market.

Answer 2

Australia stock pile yellow cake, releasing only relativly small amounts onto the market at one time in order to keep the prices high. Much the same as De Boers did with diamond mining in South Africa.

Answer 3

yes uranium used to produce plutonium is abundant, cost of production is stable, it is long lasting and requires small amounts to produce power.