\n\tBy Greg Peel<\/p>\n
\n\tIt started late last year and it has continued into January. The bulk of “real” global spot uranium demand (utilities as opposed to traders) is currently centred<\/span> in Europe where U3O8<\/span> is being sought. The bulk of “real” uranium supply (not just traders) is centred<\/span> in the US and it's in the form of UF6<\/span>. Those needing apples in one part of the world are not interested in oranges far, far away.<\/p>\n \n\tClearly this makes it more difficult for industry consultant TradeTech<\/span> when trying to publish an “indicative” spot uranium price in a non-homogenous market. The bottom line is that last month simply saw some jostling between traders and producers with neither wishing to give much ground in a market where price direction is back to front. The Europeans will pay more for U3O8<\/span> than the Americans are selling UF6<\/span> for.<\/p>\n \n\tThe month of January was quiet, TradeTech<\/span> reports, seeing only fifteen spot transactions totalling<\/span> 1.8mlbs of U3O8<\/span> equivalent. TradeTech's<\/span> end-month price was set at US$52.25\/lb but after the week ending January 3, in which five transactions totalling<\/span> only 675,000lbs<\/span> were completed, that price has fallen by US25c<\/span> to US$52.00\/lb.<\/p>\n \n\tThere is nevertheless action in the medium and long term markets. TradeTech<\/span> reports five transactions totalling<\/span> 900,000lbs<\/span> for delivery in 2013-14 contracted in January. The bad news is TradeTech<\/span> has subsequently lowered its medium term price indicator by US50c<\/span> to US$54.50\/lb. There was fresh demand apparent in the longer term delivery market as well but no transactions, leaving TradeTech's<\/span> long term indicator at US$61.00\/lb.
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