Commodities | Aug 26 2008
By Rudi Filapek-Vandyck
The uranium oxide (U3O8) spot market continues to be characterised by little to no action, but if industry consultant TradeTech’s assessment proves correct, the next few weeks could see some deals being concluded at higher prices. For now, however, overall activity remains low and thus TradeTech has left both its weekly spot price indicator and longer term price benchmark unchanged at US$64.50 and US$80/lb respectively.
Ongoing problems at Cameco’s flagship Cigar Lake project, pushing forward the start of supply hitting the market from this troubled uranium project in Canada, is pulling sellers and buyers closer to each other, reports TradeTech. This after sellers raised their asking prices following more admissions from Cameco all was not going well at Cigar Lake. One could conclude this suggests a higher spot price in the weeks ahead (even though TradeTech does point out that overall demand remains “sluggish”).
The industry consultant points out next week (September 3-5) sees a symposium taking place in London, organised by the World Nuclear Association, a private industry organisation set up to promote nuclear power. Market participants might adopt a wait and see approach ahead of the event, the consultant suggests.
The past week saw one deal being concluded in the sport market, with TradeTech observing it appears two new buyers have emerged in the longer term market (but no deals have been concluded as yet).
