July 20, 2010


Click Image Below For Historical Spot Prices

Ux Consulting late Monday raised its price to $41.75 a pound U3O8, 25 cents above the price publisher's July 12 number.

But UxC noted that at least one deal was concluded over the past week below $41.50/lb. And while offer prices increased slightly (UxC bases its price on the most competitive offers it is aware of), that trend may not hold, UxC said. "Once the outcomes of the solicitations [to Taiwan Power and New Jersey's Public Service Electric and Gas] are known, sellers may look to market their unsold material a little more aggressively.

" Taipower is looking for up to 300,000 lb U3O8 equivalent for delivery anytime up to December 21, while PSE&G is looking for about 260,000 lb U3O8 equivalent for delivery this year. PSE&G also is seeking about 520,000 lb U3O8 equivalent to be delivered in 2011 and 2012 and up to 425 mtU per year (about 1.2 million lb U3O8 equivalent) starting in 2015. TradeTech late Friday kept its spot price indicator at $41.50/lb. Although there were signs last week that the price was softening, new demand emerged that gave some support to the price, an analyst said. TradeTech reported that one producer made a small purchase, and two US utilities quietly sought offers.

TradeTech also reported that because of a labor dispute at Honeywell's UF6 conversion plant in Metropolis, Illinois, some buyers are expressing a preference for delivery of material elsewhere. (Much of the U3O8 and UF6 that is bought and sold in the uranium market is presently in storage at licensed uranium conversion or enrichment facilities.) UxC?s broker average price, or (BAP), was $41.61/lb on July 12, down slightly from the $41.64/lb BAP on July 12.

The BAP is a daily calculated midpoint of the bids and offers reported by three brokers -- ICAP, Tullett Prebon, and MF Global, according to UxC. In the long-term market, UxC kept its long-term price at the end of June at $58/lb, and TradeTech kept its price at $60/lb.

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