Commodities | Jul 02 2010
By Greg Peel
Typically activity in the spot uranium market begins to wind down into June ahead of the quieter northern summer, however market consultant TradeTech reports a rush of late buying as the month came to a close. Sellers have backed off their prices, expecting a pick-up in activity in the third and fourth quarters, and in the final week buyers were prepared to bridge that gap.
The result is an end-June spot uranium price of US$41.00/lb on TradeTech's indication – up US75c on the previous week and up US$1.00 from May.
This anticipation of improved pricing ahead from the sellers was noteworthy, given May saw 28 transactions totalling 4m pounds while June only saw 17 transactions for 3m pounds. TradeTech notes intermediaries were involved in the majority of June deals but that utilities, rather than speculators, accounted for around 50%. New utility demand helped to push prices higher, and a labour dispute at an Illinois conversion facility also added pressure.
The bad news for prices is the US Department of Energy is back in with another inventory of UF6 to sell this week but the good news is this is the last DOE lot for 2010.
The term uranium market saw five transactions in June – all non-US utility buyers – totalling 33m pounds of U3O8 equivalent. The largest saw 23m pounds purchased for delivery over ten years. TradeTech's mid-term price indicator is unchanged at US$50.00/lb.
