Uranium Spot Price Climbing

Source:

"The spot uranium price continued its ascent for a successive week."

The spot uranium price continued its ascent for a successive week, with a slower growth rate as the value increased by $1.75 to $59.25/lb. Six transactions were concluded this week, with financial entities and traders purchasing the bulk of the material sold. With some uncertainty on supply and demand fundamentals, the delivery timing continues to be a significant factor in the spot market. Shorter-term uranium supplies for delivery by year-end 2010 are extremely thinly traded—and the emergence of significant mid- and long-term demand, combined with buyers competing to purchase material, continues to command upward pressure on prices.

Chinese appetite for secure energy sources continues to generate headlines with investors and the nuclear industry, following an announcement last Thursday that China Guangdong Nuclear Power Group signed a contract with Kazakhstan's Kazatomprom. Exact details of the exchange were unavailable; however, the long-term contract was signed after a meeting between the Chinese chief political adviser Jia Qinglin and Kazakh Prime Minister Karim Massimov.

Australia can now commence supplying uranium to fuel Russia's power reactors following the exchange of ratification notes by the Australian Prime Minister Julia Gillard and Russian President Dmitry Medvedev formalizing a bilateral nuclear cooperation agreement.

The meeting in Seoul, South Korea occurred prior to the start of the recent G20 summit. During the exchange, Medvedev said: "To open a new page in relations, today is a good opportunity to exchange instruments of ratification of the agreement, which was previously agreed and accepted." Gillard was pleased, saying: "It will increase export opportunities and create jobs for Australia's uranium suppliers and consolidates Australia's position as a reliable provider of energy resources." She also noted that the agreement brought Australia's bilateral nuclear relationship with Russia into line with agreements in place with other countries, including the U.S., China, Japan and South Korea.

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