By Greg Peel

It looked for all the world like long awaited buying interest from utilities ? the real end-users of uranium ? had appeared the week before last and might be set to gain momentum. But industry consultant TradeTech reports two US utilities seeking a total of 500,000lbs of U3O8 equivalent and a producer seeking 900,000lbs for short term delivery have found little trouble in securing supplies. This meant little buying interest in the spot market last week where hedge funds continue to line up as sellers.

Only four transaction totalling 900,000lbs of U3O8 equivalent were reported last week compared to the previous week's thirteen transactions for 1.8mlbs. Prices were hammered early in the week although began to creep up again towards the end, but TradeTech's indicative spot price is still down US$3.50 for the week at US$52.75/lb.

False dawn or just a stumble?