Commodities | Jul 06 2010
By Greg Peel
Industry consultant TradeTech's uranium spot price indicator settled at US$41.75/lb to end the month of June. In the following couple of days, buyers backed away in anticipation of the fourth and final lot of US Department of Energy UF6 inventory to be put up for sale on Friday. Thus the week ended on the same US$41.75/lb indicative level.
The response to the DOE's offer was nevertheless strong, TradeTech reports, with a variety of entities competing for what is 653,000 pounds of U3O8 equivalent on offer. Close to a dozen bids were submitted and several parties are expected to split the volume, with utilities among them.
On the other side of the ledger, offers from the market are sought by July 20 for 260,000 pounds of U3O8 equivalent sought by a US utility for delivery in 2010.
There were no further term transactions in the latter part of the week, TradeTech reports. One US utility is awaiting offers of 520lbs U3O8eq for delivery in 2011-12 and up to 1.1mlbs per year from 2015 on. Other utilities are also considering term purchases at present.
