Commodities | Nov 20 2007
By Rudi Filapek-Vandyck
Spot uranium (U3O8) has remained at US$93 per pound for the third week in a row, on industry consultant TradeTech’s assessment, amid reports of a much more orderly behaviour of industry participants on both side of the ledger.
TradeTech reports the gap between sellers and buyers is narrowing, indicating our conclusion from last week that contract prices seemed to be settling in the low US$90s was spot on.
The industry consultant’s latest update on the sector confirms reports elsewhere of a much more orderly market behavior of financial investors. TradeTech put it as follows in its weekly report: “Speculators and hedge funds continue to show interest in acquiring material, but are, as yet, unwilling to bid prices up as they did earlier in the year.”
Last week saw two transactions being concluded. One off-market by a hedge fund and one by a non-US based utility which initially had invited orders for 400,000 pounds of yellowcake but decided to only accept one offer for 100,000 pounds. The remaining 300,000 pounds will be offered again in the near future.
This week will see price bids for an offering of 260,000 pounds U3O8 equivalent in
the form of UF6.
TradeTech also reported that activity seems to be increasing in the long term uranium market. The consultant has left its long term price indicator unchanged at US$95 per pound.
