Analysis: New Step for Uranium Trading
Source: United Press International (5/4/07)
When the New York Mercantile Exchange launches a first-of-its-kind uranium futures contracts, it sets a new stage in the growing uranium market. But the project, a venture with Ux Consulting, is likely not to settle the rocky road uranium prices have ridden lately.
Uranium futures products traded on and off the exchange will be introduced on the CME Globex and NYMEX ClearPort platforms, ready for trade Monday.
Utilities buy fuel for their reactors in contracts that guarantee supply but not a fixed price. The price floor is set at market price on contract-signing day, but they pay market price on the day of delivery.
The NYMEX/UXC project is intended to change that, said Jeff Combs, president of Ux Consulting. He said it will add transparency to the global uranium contract market and "development of a forward price curve."