Uranium Market Review - March 13th, 2009

The spot uranium market saw some increased activity this week as a result of the recent drop in the spot uranium price. The current price level has spurred additional buying interest and several utilities have entered the spot market in hopes of securing material at “bargain” prices.

Unfortunately for sellers, this buying interest is truly “discretionary” and unlikely to result in transactions unless the seller is willing to offer some discount from published prices.

A few sellers have shown a willingness to lower offer prices, and the gap between willing buyers and willing sellers has narrowed. At least one off-market transaction was concluded this week.

Price movements are now observable at $0.25 and $0.50 increments, as opposed to dollar increments seen for many months, and TradeTech’s Spot Price Indicator is $42.50, down $0.50 from last week.

 

Uranium Market Review - March 6th, 2009

One transaction is reported this week in the spot uranium market. The transaction was concluded at or very near today’s Uranium Spot Price Indicator.

The recent drop in the spot price has stimulated some buying interest and several utilities are contemplating possible spot purchases. In addition, some producers are considering entering the market. However, this demand remains highly discretionary in nature and very price sensitive.

Without any “have to” demand present in the market, sellers are compelled to lower offer prices if they wish to conclude sales. As a result, TradeTech’s Spot Price Indicator is down this week to $43.00 per pound U3O8.

Uranium Market Review - April 30th, 2009

Volume in the spot uranium market surged this month with 20 transactions reported. While buyers included utilities, producers, and intermediaries, utilities were the most active.

In conjunction with the steep increase in volume, spot prices moved upward as well, with each successive deal concluded at a higher price than the last. The price rise was prompted by a steady increase in demand throughout the month.

Recent transactions have removed the bulk of excess inventory that has overshadowed the market and buyers, sensing that the spot price may have bottomed, actively entered the market.

Sellers reacted accordingly, quickly seizing the opportunity to raise offer prices. At month-end, new demand continues to emerge with five buyers seeking a total of approximately 2.1 million pounds U3O8 equivalent.

TradeTech’s Exchange Value for April 30 is $45.00 per pound U3O8, an increase of $1.00 from last week’s Spot Price Indicator and up $3.00 per pound from the March 31 Exchange Value.

Uranium Market Review - April 24th, 2009

Nuclear market participants gathered this week in Sydney, Australia, for the World Nuclear Fuel Cycle 2009 conference. One of the themes of the conference was Australia’s perspective of nuclear issues, as well as the country’s position in the nuclear fuel cycle.

Besides the formal presentations at any conference, are the hallway conversations and business that are conducted in private meetings. There was much discussion this week of the recent spot price increase and whether it would be sustained. Clearly, some market participants have concluded that the spot price will continue to rise in the near term, as several parties ventured into the market over the past week to buy material.

Presently, utilities, traders, and financial entities are all active in the market. Three transactions were concluded this week.

Sellers are increasing offer prices with each new inquiry from potential buyers, and buyers are now willing to accept higher prices. As a result, each of this week’s spot transactions was concluded at an amount higher than that of the previous transactions. Consequently, TradeTech’s Spot Price Indicator is $44.00 per pound U3O8, an increase of $2.50 from the previous week

Uranium Market Review - March 20th, 2009

Two transactions are reported this week in the spot uranium market. Spot prices have flattened and buyers and sellers appear to have found a price level at which both sides are willing to conclude transactions.

Nevertheless, the bulk of the buying interest remains predominately discretionary and highly price sensitive. TradeTech’s Spot Price Indicator remains at $42.50 per pound U3O8, unchanged from last week.