Commodities | Oct 02 2007
By Rudi Filapek-Vandyck
As suggested last week, this week’s updates on spot U3O8 developments by industry consultants TradeTech and Ux Consultants are likely to give investors and uranium enthusiasts an insight in whether the price correction that started in June has now run its course.
The answer is: no. TradeTech cut another US$10 off its weekly price indicator taking it to US$75/lb from US$85/lb and the consultant says the decision was inspired by the outcomes of several auctions made public during the past week.
The US Department of Energy (DOE) released the official results from its August auction. The winning bidders included three US utilities and one hedge fund with the average price for all bids received reported as US$213.48/kgU as UF6. In late September, one trader entered the market offering 100 tU as UF6 or U3O8 equivalent. TradeTech reports the seller has accepted multiple bids and will sell about 300 tU as UF6 or equivalent U3O8 in total.
According to TradeTech the winning price in each of the mentioned transactions is at or very near its updated Exchange Value of $75.00 per pound U3O8.