nuclear-news

Rapid fall in uranium spot AND TERM prices

The week ended with TradeTech’s Weekly U3O8 Spot Price Indicator sitting at $36.50 a pound, a decline of $1.75 over the prior week’s value. This is the lowest price that has been seen in more than seven years

The weakness was not isolated to the spot market and is starting to spill over into the term market. 

Uranium Market Marches South at Double Time 9 News Finance byFN Arena By Andrew Nelson Tuesday, July 23, 2013  The crack appeared the week before last. Sellers started to buckle under the strain and gave in to lower prices. A US$1.30 drop ensued. That’s the way last week started and from there things only got worse for the uranium spot price.

No fewer than eight utilities entered the spot market as buyers last
week. Four of them concluded deals for over 900,000 of U3O8
equivalent. Industry consultant TradeTech reports that with every
sale, successively lower prices were offered, sellers seemingly
falling over themselves to clear stock. Ever mounting cash flow
pressures and the desire to conclude businesses before prices fell
even further were cited as the drivers…. The week ended with
TradeTech’s Weekly U3O8 Spot Price Indicator sitting at $36.50 a
pound, a decline of $1.75 over the prior week’s value. This is the
lowest price that has been seen in more than seven years. TradeTech
notes the last time the spot uranium price was this low was in January
2006….
The weakness was not isolated to the spot market and is starting to
spill over into the term market. TradeTech reports there are several
more US and non-US utilities that are considering potential entry into
the term market simply to take advantage of current price levels….
Sentiment wouldn’t have been helped by news local Chinese authorities
cancelled plans to build the Heshan uranium processing plant in
response to public protests….
As prices slide, the producers keep producing. Last week, Paladin
reported record FY uranium production on higher output from the Langer
Heinrich and Kayelekera mines in Africa. By the end of play, total
production was up 20%. Fourth quarter output was above nameplate,
sales were also at record levels, although revenue wasn’t. The
company’s average received price was US$49.48 a pound.
…http://finance.ninemsn.com.au/newscolumnists/other/8694116/uranium-marches-south-at-double-time

July 24, 2013 - Posted by Christina Macpherson | 2 WORLD, business and costs, Uranium