Uranium Spot, Demand on the Rise
Source: Ninemsn, Chris Shaw (10/19/10)
"Spot activity rises, along with some new demand over the past week."
The transactions totaled almost 800,000 pounds of uranium, the buying coming from utilities, producers and intermediaries. Deals completed during the week included a US utility looking for 200,000 pounds of material selecting winning suppliers for a portion of its needs.
Prices for deals completed during the week spanned a broad range, this depending on delivery date and location. As TradeTech notes, transactions involving delivery next year or in Europe were concluded at higher prices than deliveries in North America and before year-end.
In terms of new demand, one U.S. utility entered the market seeing 180,000 pounds of uranium with offers due October 25th. Another utility is looking for 400,090 pounds of material for spot delivery and a further 650,000 pounds for delivery next year.
This increase in spot activity, along with significant demand in the mid- to long-term sector, such as one utility seeking up to 975,000 pounds of material, is putting upward pressure on prices. Sellers are responding by raising their offer prices and TradeTech has similarly lifted its Spot Price Indicator by US$0.50/lb. to US$48.50/lb.
There are no changes to TradeTech's mid-term indicative price of US$50/lb. or its long-term price indicator of US$62/lb.