Washington (Platts)--21Aug2007

The spot price of uranium dropped $15 a pound over the past week and now
stands at $90/lb U3O8, Ux Consulting said late Monday. 

     At $90/lb the spot price is now $5/lb below the long-term price
indicator, the first time the spot price has dropped below the long-term price
since late 2006, Ux said. 

     This reported decline in the price came after TradeTech kept its price at
$105/lb on August 17, the day the US Department of Energy received bids in its
auction of 200 metric tons uranium as UF6 (about 520,000 lb U3O8 equivalent).

     Although the results of that auction may not be known until the end of
August, analysts said sellers have apparently concluded that prices below
$100/lb will be necessary to entice prospective buyers into the market. 

     The question now, analysts said, is how far the price will drop. A
support level, Ux said, is likely to materialize when demand picks up, as
buyers search for bargains, and the number of determined sellers declines.