Commodities | Mar 04 2010
By Rudi Filapek-Vandyck
I received a few remarks from readers this week about my uranium story earlier this week (see “A Death Cross For Global Uranium Stocks”). The main complaint was that if two leading consultants to the uranium industry lower their spot price benchmarks to the same price level, this is not something that is “remarkable” – as I labelled it in my story.
Maybe not, but this week again shows that having Ux Consulting and TradeTech on one and the same price level has become more of an oddity than anything else. I suspect commercial motivations are behind this, but that's all I can do from my chair: assuming and speculating.
Fact is that after TradeTech lowered its weekly spot price to US$40.75/lb last week, UxC has responded by lowering its own weekly spot price indicator a tad lower: to US$40.50/lb from US$41.75/lb the previous week.
As I noted in my earlier story this week (see above) the long term price indicators as set by both consultants have now converged to US$60/lb. I haven't exactly gone through our archive, but it has been a long time since both consultants were on similar price levels for both long term and spot price benchmarks – I'd say more than a year, at least.
As a matter of fact, it now appears it lasted for a very short time only.
