By Rudi Filapek-Vandyck
It appears build-up expectations about renewed interest for yellow cake are finding their way into stronger prices. After industry consultant TradeTech bumped up its weekly spot price indicator by US$2 to US$43.50/lb for the week ending Friday, peer Ux Consulting has gone much further, lifting its own weekly spot price by US$4.25 to US$46.00/lb.
Adding to the positive picture is the fact that UxC also lifted its longer term price benchmark to US$60/lb (previously US$58), bringing both consultants back on the same price level on longer term (contract) prices.
UxC's price increase of more than 10% is very large, but not the first of its kind. The past few years have seen similar price rises (between US$5-10 in one single week) on a few occasions. All were either caused by a sudden spike in demand, or by sudden problems on the supply side.
This time around the reasons behind the spike appear to be inspired by both: on one hand Chinese buyers reportedly have entered the market, while on the other hand a labour disruption plus equipment problems at the Converdyne conversion plant in the US seems to have made some US utilities a little nervous about supply.
See also “Uranium Regains Its Luster” published yesterday (27 July, 2010).
