Uranium Stocks Reversing Downward Trend?
Source: Mineweb.com (10/23/07)
Widely followed industry experts Ux Consulting and Tradetech Uranium this week said the spot uranium U3O8 price had increased by $2 to $80 a pound, signalling a further possibility that recent prices around $75 a pound represented lows.
Spot uranium prices fell to $90 a pound in the second week of August, from $105 in the previous week, savagely down from the $136 a pound record seen in late June. Uranium trades largely in an opaque, contract-related market, raising questions over the integrity of spot prices quoted.
The known spot price subsequently fell to $75 a pound, just over ten times the cyclical low prices quoted in 2000, ahead of uranium's price re-rating on its attraction as an alternative energy source to hydrocarbons. The price drifted around $75 a pound for weeks, leaving uranium stocks off by an average of around 50%, and vulnerable to even the slightest hint of negative news flow.