Uranium Prices Creeping Higher
Source: Nine MSN, Chris Shaw (10/5/10)
"Increase reflects increasing demand, recent offers and transactions."
One utility also entered the market, seeking around 400,000 pounds of uranium for spot deliver and a further 650,000 pounds for delivery next year according to TradeTech
TradeTech notes that there has been no new demand or transactions since the end of last month.
TradeTech's new spot price indicator reflects an increase of US$1.25 from the level at August 31. Prices were volatile through September. Earlier in the month TradeTech's spot price had been as high as US$48.00 per pound.
Twenty transactions were recorded for the month, totaling 3.1 million pounds equivalent of uranium, while year-to-date volume now stands at 32.6 million pounds uranium equivalent.
Falling prices in recent months attracted new buyers into the market, though TradeTech notes that the impact of this increased buying interest was offset by new supplies hitting the market.
September's market activity has not changed TradeTech's medium-term price indicator of US$50 per pound. The group has lifted its long-term price indicator to US$62 per pound from US$60 per pound previously. The increase to the long-term price indicator reflects both increasing demand for material and recent offers and transactions.