Uranium Bounces Back (a Little)
Source: FNArena News, Andrew Nelson (12/2/09)
"Buyers were quick to take advantage of the bargains on offer. . ."
Over the first three weeks of November, industry consultant TradeTech's U308 Spot Price Indicator pulled all the way back to $43.00 per pound, down US$3.00 from the end of October. But by last Friday, the spot price was on the way up again, ending November at US$45.25.
It wasn't until last week that the market got some much needed good news. A preliminary prospectus was filed in Canada for the formation of a uranium investment fund. Uranium Investment Corp is looking to raise as much as C$150 million to invest in uranium products. TradeTech reports the company intends to use nearly all the money it raises to acquire uranium products.
The supply side saw a number of sellers hit the market ahead of DOE's announcement, and this served to drive prices down during the first few weeks of November. Buyers were quick to take advantage of the bargains on offer, with 14 transactions totaling 1.6 million pounds U3O8 equivalent concluded during the first three weeks of November.
However, there were another 8 transactions totaling over 1.1 million pounds U3O8 that were concluded in the last week of the month, despite it being a short week. These deals not only helped to clear the market of most of the discounted supply, buyers also seemed willing to pay more to secure material. TradeTech reports that by month end, prices had increased US$1.25 from the November 27 Spot Price Indicator.