Commodities | Mar 31 2009
By Andrew Nelson
After a static week last week, TradeTech’s U3O8 Weekly Spot Price Indicator slipped just US25c as speculative buying interest continues to build. There were no transactions reported last week in the spot uranium market, but there is some evidence that at least a few sellers are willing to look at giving minor discounts.
TradeTech reports one US utility is currently reviewing submitted offers for delivery of 100,000 pounds U3O8 between now and June 2009. On top of that, another US utility is also evaluating spot offers for approximately 250,000 pounds U3O8 equivalent received in conjunction with its request for long-term offers.
The recent softening in the spot price has seen the current price level begin to attract more buying interest, says TradeTech, who notes that utilities are increasingly looking to pick up stock for future use at what are seen as bargain prices. While some sellers are offering slight discounts from published prices, most seem unwilling to aggressively drop prices in order to get deals done, says TradeTech.
Hence, some fairly static prices over the month, although there has been a modicum of softening due to the highly discretionary nature of current demand. At the end of last week, TradeTech’s Spot Price Indicator was at US$42.25 per pound U3O8.
Long-term prices were once again unchanged at US$69.00/lb, with demand from both US utility and non-utilities making up the entirety of the waiting list. The consultant reports that at least one more US utility is looking to enter the market soon.
