Washington (Platts)--4Sep2007

The spot market price of uranium continued its downward plunge to $85 a
pound U3O8, price reporting company TradeTech said in its latest market
review. TradeTech's price at the end of July was $123/lb. 

     The decline was due primarily to reports of various winning bids in a
recent auction of eight lots of uranium by the US Department of Energy. It its
believed that one winning bid -- by US utility Exelon for a small lot of some
20,000 lb U3O8 equivalent -- went for a price that analysts evaluated as being
around $60/pound. 

     DOE, which has declined to release the details of its auction, said on
its web site that it expects to release information by September 28
identifying  winning bidders, the amount of uranium purchased and the average
price paid. 

     TradeTech said it believes the largest DOE lot -- about 260,000 pounds of
U3O8 equivalent -- went for an evaluated price just below $85/pound. But the
company said that by the end of August, the price may have rebounded slightly
with one deal reported involving 150,000 lb U3O8 at a price "very near"
$85/lb.

		--Mike Knapik, newsdesk@platts.com