##{"id":59840,"date":"2012-04-24T10:00:15","date_gmt":"2012-04-24T00:00:15","guid":{"rendered":"http:\/\/www.fnarena.com\/index.php\/2012\/04\/24\/uranium-sellers-sensing-strength\/"},"modified":"2012-04-24T10:00:15","modified_gmt":"2012-04-24T00:00:15","slug":"uranium-sellers-sensing-strength","status":"publish","type":"post","link":"https:\/\/staging.fnarena.com\/index.php\/2012\/04\/24\/uranium-sellers-sensing-strength\/","title":{"rendered":"Uranium Sellers Sensing Strength"},"content":{"rendered":"

\n\tBy Greg Peel<\/p>\n

\n\tThe market for spot uranium seems destined to reach some sort of meeting of the minds which could result in more solid volumes, but not just yet.<\/p>\n

\n\tAs noted in last week's Uranium Buyers Shun Spot For Term<\/a>, traded volumes in the uranium spot market have remained very subdued year to date compared to last year's Fukushima-impacted action. Yet this does not imply a total lack of interest in uranium, just a preference from buyers for delivery contracts of a year or more. Indeed, while few term transactions have been completed recently there is no lack of utilities on the hunt for delivery contract offers.<\/p>\n

\n\tWhat we haven't seen much of this year is interest from hedge funds looking to speculate on uranium price direction via spot trades. On the one hand, speculators have had a rough time both in 2007 and again last year so understandably they remain a little shy, while on the other hand they are being turned off by the recent geographical (US vs European delivery) and uranium form (U3O8<\/span> vs UF6<\/span>) mismatch in place across the Atlantic.<\/p>\n

\n\tThere were nevertheless four transactions totalling<\/span> under 500,000lbs<\/span> U3O8<\/span> equivalent conducted in the spot market last week according to industry consultant TradeTech<\/span>, and some build-up in buying interest has meant TradeTech's<\/span> weekly spot price indicator has risen US25c<\/span> to US$51.50\/lb. More transactions would have been completed if the sellers had not backed off, citing growing demand in the term market as indication spot prices should soon be higher.<\/p>\n

\n\t“The entry of new demand in the mid and long term markets has many sellers convinced of the potential for additional spot demand to materialize,” suggests TradeTech<\/span>, “and thus for a potential recovery in the spot price as well”.<\/p>\n

\n\tUranium fans can but hope.<\/p>\n

\n\tTradeTech's<\/span> term price indicators remain at US$53.50\/lb (mid) and $60.00\/lb (long).
\n\t <\/p>\n

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