\n\tBy Greg Peel<\/p>\n
\n\tIndustry consultant TradeTech<\/span> closed out its spot uranium price indicator for 2011 at US$52.00\/lb. This was down from US$62 at the end of 2010. Spot trading activity in 2010 totalled<\/span> 42.8mlbs and marked the highest level in 20 years. Activity in 2011 – the year dominated by the “fallout” from Fukushima – reached a new record of 45.8mlbs.<\/p>\n \n\tPrior to the Japanese tsunami spot uranium had reached a high of US$73 as interest began to turn belatedly back to the controversial energy source. Hedge funds had been so burnt in the 2006-07 bubble and bust that many were never to return to spot uranium trading, but continuing price rises for most commodities, and particularly for rivals coal and oil, saw a tentative reemergence late in 2010. Then along came the tsunami in March last year and the whole face of the global uranium industry changed.<\/p>\n \n\tThe spot price quickly traded under US$50 as a result but soon stabilised<\/span> above that level, suggesting actual end-users were and are still happy to pick up inventory at or below this line in the sand. Spot trading into 2012 remains at the best “discretionary”, in TradeTech's<\/span> observation, as buyers and sellers eye each other off without solid commitment. Last year also saw locational discrepancies, and trading in 2012 has seen prices for delivery in Europe remain at a premium to those in the US.<\/p>\n \n\tLast week saw only three spot transactions totalling<\/span> less than 400,000lbs<\/span>, TradeTech<\/span> reports. However, the emergence of a non-US utility seeking 800,000lbs<\/span> of U3O8<\/span> for delivery by end-March encouraged buyers enough to see the indicative price rise by US75c<\/span> to US$52.75\/lb by week's end. Indeed it appears that things are hotting<\/span> up somewhat in the term market.<\/p>\n \n\tBefore Christmas TradeTech's<\/span> indicative term prices sat at US$54.50 (mid) and US$62.00 (long) but the consultant has since closed the gap, showing US$55.00 (mid) and US$61.00 (long). Last week was dominated by non-US utilities in the market seeking term deliveries, with 1.2mlbs sought over four years, 1.7mlbs sought for 2014-20 delivery and 2.9mlbs for 2012-32 delivery, among other less specific but significant contracts.<\/p>\n