Active Spot Uranium Demand Dropped by 65 Percent in April

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“The severe upward price momentum, witnessed in early April, had largely dissipated by month end,” wrote Klingbiel, editor of Nuclear Market Review's (NMR). “Sellers became even more reticent to submit spot offers.” The drop in demand could also have been impacted by the upcoming NYMEX uranium contracts, as many wait for developments and liquidity in the futures markets...

Trading in the spot uranium market came to a standstill in the latter half of April. According to Nuclear Market Review’s (NMR) month-end report, “Uranium spot market volume was relatively low for the month of April.” Only three transactions, amounting to slightly more than 550 thousand pounds U3O8 equivalent, were reported for the month.

NMR editor Treva Klingbiel wrote, “All three transactions were concluded early in the month.” According to records supplied by TradeTech, uranium transaction volume for the first four months of 2007 stands at the lowest in a decade.

“The severe upward price momentum, witnessed in early April, had largely dissipated by month end,” wrote Klingbiel. “Sellers became even more reticent to submit spot offers.” The drop in demand could also have been impacted by the upcoming NYMEX uranium contracts, as many wait for developments and liquidity in the futures markets...

Although the spot U3O8 price jumped to US$113/pound during April, the long-term U3O8 price indicator failed to budge. Long-term uranium remained at US$85/pound.

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