Commodities | Oct 19 2010
By Chris Shaw
Uranium market activity is continuing to pick up as uranium market consultant TradeTech notes the spot market saw eight new transactions and some new demand entering the market over the past seven days.
The transactions totalled almost 800,000 pounds of uranium, the buying coming from utilities, producers and intermediaries. Deals completed during the week included a US utility looking for 200,000 pounds of material selecting winning suppliers for a portion of its needs.
Prices for deals completed during the week spanned a broad range, this depending on delivery date and location. As TradeTech notes, transactions involving delivery next year or in Europe were concluded at higher prices than deliveries in North America and before year-end.
In terms of new demand, one US utility entered the market seeing 180,000 pounds of uranium with offers due October 25th, while another utility is looking for 400,00 pounds of material for spot delivery and a further 650,000 pounds for delivery next year.
This increase in spot activity, along with significant demand in the mid to long-term sector, such as one utility seeking up to 975,000 pounds of material, is putting upward pressure on prices. Sellers are responding by raising their offer prices and TradeTech has similarly lifted its Spot Price Indicator by US50c to US$48.50/lb.
There are no changes to TradeTech's mid-term indicative price of US$50/lb or its long-term price indicator of US$62/lb.
