Commodities | Aug 16 2011
By Greg Peel
It was three weeks ago when industry consultant TradeTech noted expectations from uranium market participants that buying interest would be limited for the time being. Uncertainties included the overhang of Japanese inventory, US plans to increase enrichment of tailings inventories, and general concern with regard to the world's post-Fukushima outlook on nuclear energy.
And last week we can throw in financial market turmoil.
So it is of little surprise that that buyer disinterest persisted last week, such that a total of one million pounds of U3O8 equivalent in seven transactions saw prices chased lower. By week's end, TradeTech had lowered its spot price indicator by US$1.25 to US$50.25/lb.
There was no new demand in the term market, and at the moment little in the way of catalysts to drive the uranium price higher. We recall from the immediate Fukushima price reaction, however, that there was buying interest triggered under US$50/lb. As to whether there are still buyers lurking at that level we may soon be about to find out.
