Commodities | Feb 12 2008
By Rudi Filapek-Vandyck
Spot uranium is no longer falling. After sector consultant Ux Consulting decided to lower to US$75/lb and pull its spot price in line with fellow-consultant TradeTech last week, the latter has kept its own weekly spot price indicator unchanged this week. US$75/lb it is then.
Long term price indicators remain at US$95/lb for both consultants.
TradeTech reports at least two sellers remain active in the spot market. However, the consultant also suggests that last month’s aggressive sellers seem to have resided to the sidelines for now, signalling these sellers may have sold what they had to sell. Uranium priced at US$75/lb again has triggered renewed interest from buyers. TradeTech reports at least two hedge funds are currently considering whether they should purchase some product or not.
If last year’s pattern repeats itself this year, spot prices should find a bottom at current price levels, similar to September-October last year.