Washington (Platts)--18Dec2007
The spot price of uranium dropped to $90/pound U3O8, based on lower offer
prices by one and possibly several sellers looking to move material within the
next 30 days, market analysts said.
Both TradeTech and Ux Consulting lowered their spot price indicators to
$90. TradeTech, which lowered its price $3, said late Friday that sellers with
both U3O8 and UF6 were active in the market and that "mismatches between form
and delivery location prompted some sellers to lower their offer prices in
order to attract buyers."
Ux Consulting, which lowered its spot price indicator $2, said late
Monday that the lower offer prices are a result of very limited demand.
Some analysts suggested that to attract buyers, sellers may now have to
offer prices below $90. That, however, could change if Cameco on Wednesday
provides a bearish update on progress at getting its flooded Cigar Lake
uranium mine into service.
Separately, Westinghouse is said to be offering enriched uranium product
for delivery in March 2008 (about 600,000 pounds U3O8 equivalent). Bids are
said to be due to the company January 25.
The Platts NuclearFuel range for the week was $89-$95/pound U3O8.
--Mike Knapick, newsdesk@platts.com
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