Commodities | Jul 08 2008
By Rudi Filapek-Vandyck
Only two transactions were concluded in the spot uranium market last week, but it was sufficient to push up TradeTech’s weekly spot price indicator by another US$1 to US$60 per ounce. Total combined volume for the two concluded deals was 225,000 pounds of uranium oxide (U3O8) equivalent.
However, what will please investors in the sector is that industry consultant TradeTech has observed that financial investors are back, and they are expected to keep upward pressure on spot prices for yellow cake.
In its latest update on the sector, TradeTech talks of “significant demand” having become apparent in the U3O8 spot market, estimated at some 2 million pounds of U3O8 equivalent with utilities, producers, intermediaries, and investors all believed considering purchases at the moment.
The consultant’s long term price indicator remains unchanged at US$85 per pound.