Commodities | Dec 23 2008
By Rudi Filapek-Vandyck
Various market watcher had expressed the belief that spot uranium prices would remain unchanged at US$54/lb for the remainder of the year, but this has proved too optimistic. Industry consultant TradeTech reports it has lowered its weekly spot price indicator by US$2 to US$52/lb, while leaving the long term price indicator unchanged at US$70/lb.
According to TradeTech, the spot uranium market has been hit at the eleventh hour by further “fallout from the credit crisis and downturn in the economy”. The majority of potential buyers has indicated they have no longer any budget left for the present calendar year, hence sellers feel the need to offer discounts, reports the consultant.
Under such circumstances it is not difficult to see why the spot uranium price declined by a further 3.70% in the week past. Three transactions were concluded totaling almost 1.2 million pounds U3O8 equivalent.
No transactions were recorded in the longer term market.
Another eye-catching observation made by the consultant is that “the severe economic environment seems to have created a greater sense of urgency for some year-end sellers than we have observed in previous years.”
