Commodities | Aug 02 2011
By Greg Peel
Last week saw seven transactions completed in the spot uranium market, notes industry consultant TradeTech, totalling 700,000lbs. For the month of July, the score card was 28 transactions totalling 3.4mlbs.
While there remained a seller in the market last week seeking to offload 500,000lbs, the spot price did manage to tick up US25c to US$52.00/lb. That price represents a US50c increase on the end-June level. TradeTech reports that numbers of both buyers and sellers remain limited at present.
Sellers are facing difficulty in generating buying interest given lingering uncertainty in the global uranium market. It is still not known just what additional supply will hit the market from Japan where nuclear power generation has been curbed. Nor is the outcome yet known for the Whitfield bill currently on its way through US Congress which seeks to further boost activity in re-enriching tailings stockpiled by the US government. That product will then be sold into the market to fund further environmental clean-up operations in the US.
There were a total of four term market transactions reported in the month of July, with three concluded last week, but no new demand has since emerged. TradeTech's term price indicators remain at US$58/lb (medium) and US$68.00/lb (long).
