Uranium Prices Jump on Rising Demand
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ShareBy Dave Brown – Exclusive toUranium Investing NewsThe spot market price of uranium jumped 5.5 percent over the past week to about $48 per pound, an increase of approximately $2.50 since the end of August. The rapid spot price rise appreciation was reflected in the price differential of TradeTech and Ux Consulting with a two business day publishing lag. TradeTech raised its spot price Friday to $46.75 per pound up $1.25 from August 31, while Ux raised its price Tuesday to $48 per pound, reflecting a $3.00 increase from August 30.
Several analysts suggest the upward pressure on the price is the result of a combination of increased demand by non-end-users and relatively few current sellers. As a result, the spread between willing buyers and willing sellers widened this week, and several buyers extended their time horizon for delivery into the first quarter of 2011. According to several sources, Argentina’s Combustibles Nucleares Argentinos S.A. (CONUAR) is said to be looking to buy about 520,000 pounds of uranium for delivery next year.
A total of eight transactions were concluded during the first three days of September. Producers and intermediaries were the buyers in the majority of the transactions with all eight transactions concluded at successively higher prices above $45.50.
Fourth quarter spot price forecasts of $50 per pound may be realized sooner than anticipated as end-user demand could remain strong with utilities filling any remaining uranium requirements they may have in 2011. Over 30 million pounds of uranium has sold in the spot market this year, and sales targets for 2010 may have already been met.
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