Commodities | Jul 31 2007
By Rudi Filapek-Vandyck
What exactly is the current spot price for U3O8 (uranium concentrate otherwise known as yellowcake)?
The question has again attracted industry wide attention given that last week Ux Consulting cut its weekly price indicator to US$120/lb days after TradeTech had decided to keep its own weekly spot price unchanged at US$129/lb.
This week the confusion remains as TradeTech has decided to lower its own price indicator by US$6 to US$123/lb, leaving a US$3 gap with colleague/competitor UxC.
TradeTech reports its new weekly spot price has been based upon “negotiations underway as of publication on Friday” as well as “TradeTech’s judgment that a transaction between a willing buyer and willing seller for a significant quantity would be concluded at [US]$123.00 per pound U3O8”.
TradeTech believes buyers were willing to pay prices lower than last week’s reported US$129/lb but higher than US$123/lb early last week. The consultant believes these buyers’ attitude changed as mid-week Ux Consulting published its US$120/lb weekly spot price.
The fact that the new spot price has been set at a US$3 premium to UxC’s assessment seems to indicate prices don’t have much further to fall from current levels.
