Commodities | Oct 21 2008
By Rudi Filapek-Vandyck
The price for a pound of yellow cake continues to fall. Last week industry consultant Ux Consulting lowered its weekly spot price indicator to US$46/lb. The move was followed by peer TradeTech going one step further: down US$2 to US$45/lb.
TradeTech’s long term price indicator stands at US$75/lb.
The consultant mentions “extremely weak demand” dynamics to explain the ongoing downward trend. However, four transactions were recorded in the week until Friday, representing near 425,000 pounds of yellow cake. TradeTech believes all demand in the spot market at present is “discretionary” and “extremely price sensitive”.
Not that long ago experts at Deutsche Bank were expecting prices to be at or above US$100 by now…
