Commodities | Mar 25 2010
By Rudi Filapek-Vandyck
Last week we suggested spot uranium prices had probably bottomed for the foreseeable future at US50c above what proved to be the bottom price last year at US$40/lb. Since then we had stockbrokers and microcap speculators indicating overall interest in uranium stocks is returning.
See for instance the story we published this week on Mantra Resources ((MRU)).
Probably of equal importance is that buying activity has started to pick up as well in the spot market, with the beneficial consequence that spot prices have started moving higher. According to the most recent update by industry consultant Ux Consulting the weekly spot price has now returned to US$42.25/lb. UxC raised its weekly spot price by one full USD this week.
Fellow industry consultant TradeTech is still in catch up mode. TradeTech's weekly spot price moved up by US50c to US$41.25/lb last week and we can expect an equally large jump at the next update.
TradeTech used its most recent market update to highlight that overall activity is picking up in the uranium market place. This has caused sellers to become more confident and to ask for higher prices. Successfully, if we can judge from the latest developments.
TradeTech also mentioned the appearance of “new demand”, which cannot be a bad thing for future prices.
The consultant's mid-term price indicator stands at US$50/lb, while the longer-term price benchmark remains at US$60/lb.
See also some of our previous stories on uranium:
“Spot Uranium Has Seen The Bottom”
“Brave Sellers Meet Stoic Buyers In U3O8 Spot Market”
“Spot Uranium Might Have Seen The Bottom”
“Death Cross For Global Uranium Stocks”
