August 14, 2010

Uranium Spot Price Keeps Edging Higher


Today's Spot Price Update Friday 13th August 2010

Nymex Uranium Futures As Of Today 13th August has Closed at US$46.90 P/Lb + another 40cent p/Lb

Next Week Is Looking Good !

Spot uranium prices rose again this week, to the highest level since November last year, to trade at $46,50/lb.

Haywood Securities analyst Geordie Mark said in a report published Friday that the fuel’s spot price would likely average at $65/lb next year, and climb to $85/lb in 2012.

Last week, market watchers at Denver-based TradeTech sounded a bullish note on the uranium spot price.

“New demand emerged with two non-US utilities entering the market. While supply remains sufficient to meet current demand, the recent increase in the spot uranium price led sellers to raise their offer prices with each new sales opportunity,” the company said.

“Buyers exhibited an increased willingness to pay higher prices to secure material as the week progressed and, as a result, the gap between willing buyers and willing sellers narrowed significantly.”

The uranium spot market is usually thinly traded, with more than 90% of the fuel being bought and sold on long term contracts, but the spot price is used to determine longer term prices.

Haywood predicted long-term contract prices would average $65/lb this year, and rise to $70/lb in 2011, before reaching parity with the spot price of $85/lb in 2012.

Vadim Zhivov, the director-general of Russia's State-owned uranium miner said last week medium term uranium spot prices would go beyond $55/lb.

“And I think that the long-term prices will be higher still than the spot prices going forward,” he said.

On Friday Canada’s biggest uranium miner, Cameco, lowered its uranium sales forecast for the year to 30-million pounds, compared with an earlier range of 31-million to 33-million pounds.

The company said it would sell less nuclear fuel on the spot market, which it described as highly discretionary. This means more good news for prices.

Vancouver-based Uranium One increased its production guidance for this year to seven-million pounds.


On Friday, World Nuclear Association director-general John Rich said “dozens of nations, many of which had ignored or shunned nuclear power for decades, lining up to prepare and equip themselves to employ this remarkable technological asset”.

“Our world will need 8 000 GW of nuclear power in the 21st Century, and that this need can be met,” he told an audience in London.

In 2008, the world used 367 GW of nuclear power.

Spot uranium prices reached a high of$135/lb in 2007 before crumbling to levels below $40/lb.

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