By Greg Peel

Last week an institutional buyer entered the spot uranium market looking for offers on one million pounds of U3O8, setting off a scrambling run on prices from their dreary depths. Sellers who had become ever more desperate as prices continued to fall suddenly backed off their offers, sending the spot price up $1.25 to $35.75/lb, so arresting the general malaise.

Quiet descended last week as market participants waited and watched to see whether or not a deal would be struck for the large bid. Some 700,000lbs of U3O8 equivalent traded hands last week, industry consultant TradeTech reports, with utilities joining the buy-side speculators and producers joining the sell-side speculators. TradeTech's spot price indicator remained unchanged at US$35.75/lb.

The consultant reports several utilities are contemplating purchases for delivery in August but the recent trend continues, with most real end-users looking for material for delivery later this year or early next year. At least six different utilities are ready to enter the term uranium market by the end of the September quarter while several others are planning entry by year-end, TradeTech reports.

On the other side of the fence, the US Department of Energy is looking for bids for depleted material held at its Kentucky and Ohio facilities.

TradeTech's term price indicators remain unchanged at US$39/lb (medium) and US$54/lb (long).

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