Commodities | Nov 10 2009
By Andrew Nelson
The uranium spot market was relatively quiet last week, with uranium market consultant TradeTech’s U3O8 Weekly Spot Price Indicator slipping just US$0.50/lb to US$46.00/lb after a drop of US$3.50/lb the previous week.
There were only three transactions totalling approximately 400,000 pounds U3O8 equivalent registered by TradeTech for the week.
While TradeTech notes the spot price at the beginning of last week was still looking a bit fragile, with transactions happening below the current spot, by the end of the week, deals were being done at or near the current level.
While turnover was arguably weak last week, there has still been an increasing amount of interest in uranium after the previous week’s decline, reports TradeTech. This resulted in a limited amount of new demand emerging last week.
There was one US utility that entered the market looking for 100,000 pounds for delivery in the first quarter of next year, while two others advised they are contemplating some discretionary purchases totalling less than 300,000 pounds of U3O8 equivalent.
There was also some new demand reported in the long-term market, but there were yet again no sales concluded. The end result is a term price that remains unchanged at US$65.00/lb.
No transactions or new demand in the conversion market or in the enrichment market were reported.