The spot price of uranium dropped $10 over the last week to $75/pound
U3O8, according to both TradeTech and Ux Consulting.

Some analysts believe the market may have now reached a bottom and
that the spot price will now head back up as more buyers begin looking for
material. But Ux Consulting said late Monday that if the long-term U3O8 price
starts to weaken (it has stayed at $95/lb for a number of months), then it is
likely that the spot price will fall further. If the long-term price doesn't
decline, then more spot demand is likely as buyers look to buy and hold
uranium, Ux Consulting said.

The $10 decline over the week was the result of a September 24 auction of
100 metric tons uranium as either U3O8 or UF6 (about 260,000 pounds of U3O8
equivalent) by Nukem. Nukem is believed to have sold slightly more material to
three companies, one of which is Uranium Participation Corp., a Canadian
company that has been investing in uranium for the past several years, sources
said.

The US Department of Energy on Friday announced the results of its
mid-August auction of 200 mt of UF6 (about 520,000 pounds of U3O8 equivalent).
DOE said it sold the uranium in eight lots at an average price of $213.48/kgU.
The successful buyers were Florida Power and Light, FPL Energy Seabrook,
Exelon Generation, Progress Energy, and Piney Branch Park of New York, an
investment company.

The Platts NuclearFuel range for the week was $70-$80/pound U3O8.

--Mike Knapik, newsdesk@platts.com