By Greg Peel

As to whether last week saw some light at the end of the long, dark uranium tunnel last week is yet to be determined. Often in the post-Fukushima era we have seen the spot price rebound briefly off lows considered to be a line in the sand, only to suffer further drift-offs soon afterward. Once upon a time US$50/lb appeared to be an obvious floor, then 40 seemed ridiculous, until 35 was breached. Either way, last week industry consultant TradeTech's spot price indicator rose US85c to US$35.10/lb.

October saw both traders and producers eager to offload unwanted inventories ahead of year-end. There has been plenty of material hanging over the market for some time, but until last month the sellers were hopeful of buying interest appearing at lower prices. Yet when that interest faded away, the sellers decided to bite the bullet, sending the spot price down US75c over the month.

Last week those eager sellers found buyers. Indeed, as the week progressed renewed buying interest saw prices increase and sellers with larger quantities back off, TradeTech reports. Seven transactions totalling 1mlbs of U3O8 equivalent were completed with both utilities and traders on the buy-side. Prices rose steadily over the week.

There were no transactions completed in the term markets last week. TradeTech's term price indicators remain unchanged at US$37.25/lb (mid) and US$50.00/lb (long).

Floor price or head fake? Cash-burning producers can only pray.

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