- Spot uranium, as determined by TradeTech, slipped slightly for the week ending Friday

- One large seller seems to have been responsible

- TradeTech does not believe spot market dynamics have changed

By Greg Peel

Supply of U3O8 into the spot market (as opposed to the term contract market) has been sparse over the past six weeks, notes industry consultant TradeTech, which is why the spot uranium price has risen considerably in the period. Sellers have backed off their prices and buyers have reluctantly been forced to chase.

Last week, however, 500,000 pounds of U3O8 came onto the market from what TradeTech describes as a “non-traditional” seller, which one assumes suggests a speculative holder. This helped to ease the upward price pressure and as such the spot price indicator for the week fell US25c to US$72.75/lb.

The supply was nevertheless cleared and by week-end 950,000lbs had changed hands at spot. TradeTech notes the sellers are again holding firm at higher prices and buyers have begun to realise they simply have to pay up. Hence there is little evidence last week's price dip will upset spot uranium's current upward trend.

There were no transactions in the longer term markets and as such TradeTech's mid-term and long-term price indicators remain at US$75/lb and US$70/lb respectively.

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