Commodities | May 06 2009
By Rudi Filapek-Vandyck
Industry consultant TradeTech mentioned some pricing pressure on long term contracts in the uranium industry recently and fellow-consultant Ux Consulting has lowered its long term contract price indicator to US$65/lb this week. TradeTech has, thus far, maintained a longer term price benchmark of US$69/lb. Ux Consulting’s previous benchmark price stood at US$70/lb.
But it’s not all bad news that is emanating from the yellow cake market. One could even say: quite to the contrary. The spot price for U3O8 continues rising. After TradeTech raised its own weekly spot price indicator to US$45/lb earlier, UxC has moved its own spot price indicator to US$46/lb (up US$2/lb).
Moreover, UxC suggests current positive momentum in the spot uranium market is likely to extend into the next weeks, at the least. UxC also notes Chinese buyers have become increasingly engaged in the market, with first “sizeable” purchases recorded and one industry source being quoted as saying “they had never seen a more active delegation than the Chinese in Sydney during the WNFC meetings”. (World Nuclear Fuel Cycle conference).
The next question, says UxC, is what will happen in India after the elections are determined.
