By Greg Peel

The week before last saw minimal activity in the spot uranium market which was largely a result of attendance at the World Nuclear Fuel Conference, but last week was hardly a hive of activity either. Uncertainty is lingering over global uranium policy.

Speculation that more European countries might take Germany's lead in phasing out or restricting nuclear capacity growth is keeping buyers at bay at present, notes industry consultant TradeTech. Italians last week voted against a referendum to expand the country's nuclear capacity, albeit the vote was tied up with referenda on other measures and a resounding "no" across the board was taken more as a general protest against President Berlusconi than a specific energy consideration. Still ? nuclear is not a popular word at present.

Speculation also continues that none of the Japanese reactors which have been shut down for safety checks in the wake of Fukushima will ever reopen, although the market is split. News reports on the weekend showed Japanese businessmen being encouraged to "dress cool" this summer and eschew stuffy suits for shorts and Hawaiian shirts such that air-conditioning demand can be reduced ahead of what may be inevitable power cuts in this limbo period.

Either way, there is currently more supply in the spot market than demand, Trade Tech reports, such that the price had to fall to entice three transactions last week totalling 500,000lbs, with utilities and speculators involved on the buy-side. TradeTech's spot indicator has thus fallen by US25c to US$54.25/lb.

Offers were due last Friday for a delivery of 200,000lbs of U3O8 equivalent in July, Trade Tech notes.

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