Commodities | Oct 20 2009
By Rudi Filapek-Vandyck
It would appear BHP Billiton’s ((BHP)) problems at its significant Olympic Dam mine have pushed suppliers and buyers closer to each other in the spot uranium market. The number of deals registered over the week past (ending on Friday) has increased, overall interest for uranium seems to have increased and most importantly of all: the spot price is on the rise again.
Industry consultant TradeTech reports it recorded six concluded transactions in the spot U3O8 market last week, plus three transactions in the conversion market. The consultant notes there is no panic, as has been the case after earlier problems with some Cameco projects for instance, and overall demand remains discretionary, but the BHP problems have triggered increased market activity regardless.
TradeTech’s weekly spot price indicator has risen US$2 to US$47.50/lb. Its mid-term price indicator remains unchanged at US$55/lb, while its long term price indicator has remained steady at US$65/lb.
Interestingly, the consultant believes buyers in the spot market included utilities, traders, investors, and… financial entities.