\n\tBy Andrew Nelson<\/p>\n
\n\tLast week was yet another slow and fairly uneventful week on the uranium spot market. Volumes were thin, transactions were few, and the spot price slipped a little more after a seller cracked under the weight and gave in to a lower bid.<\/p>\n
\n\tAnd it’ll probably stay this way for at least a few more weeks until the North Americans get back from their summer vacations. Maybe longer, who can tell with the way this market is going?<\/p>\n
\n\tWhat we do know is that someday in the not too distant future there’s going to be more demand as the Japanese and Chinese enter the market to replenish drawn down stocks and to feed new requirements. Someday in the not too distant future the Americans will need to be hitting the spot market as well; given the Russians are soon to stop feeding weapons grade stock in to the Megatons to Megawatts program.<\/p>\n
\n\tSomeday in the not too distant future… In the meantime, the spot market sleeps.<\/p>\n
\n\tLast week, industry consultant TradeTech<\/span> noted only two transactions, with about 600,000 pounds of U3O8<\/span> changing hands. TradeTech’s<\/span> Weekly U3O8<\/span> Spot Price Indicator finished the week at US$49.00 per pound, down US$0.50 from the week prior.<\/p>\n \n\tThe steady, drip by drip decline in the spot price over the past few months has certainly started to attract some additional interest. I guess like little drops of blood attract sharks. Still, at least the slow decline has allowed a few buyers to quietly do some deals.<\/p>\n \n\tIn the meantime, TradeTech notes that a few other “buyers” are looking at potential discretionary purchases, but they are bargain hunters and tyre kickers waiting for sellers to get desperate and capitulate.<\/p>\n \n\tTradeTech reports that at least a few sellers have left the market altogether, rather than eyeing off the circling sharks. The consultant notes it’s gotten to the point that even when sellers indicate a willingness to come down, buyers often disappear off into the mists.<\/p>\n \n\tNeedless to say, the term market was even quieter. There are a few, mostly non-utilities that are reviewing offers, but the case is the same every week. For months, it seems, there hasn’t been a transaction concluded.<\/p>\n \n\tAs a result, TradeTech’s Mid-Term U3O8 Price Indicator stayed put at US$53.50 per pound last week, while the Long-Term U3O8 Price Indicator remained at US$61.00 a pound.
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