Washington (Platts)--8Jul2008

Uranium's spot price jumped $1 a pound for the second week in a row and
is now at $60/lb, according to TradeTech and Ux Consulting. Both price
reporting companies also suggested that the price was continuing to face
upward pressure, as sellers raised their offer prices in the face of increased
demand, primarily from the investment community.
In its July 7 report, Ux Consulting noted that deals that have delivery
out more than two to three months are going at higher prices. The report added
that it "is likely that offer prices will continue to firm up, and reflect
slight increases over the next several weeks." According to one analyst,
potential buyers are seeing more market-based pricing schemes for deliveries
later this year, meaning that a number of sellers are bullish on where the
price is headed. The fixed-price offers that are being made, this analyst
said, are running higher than $60/lb, with some now said to be near the $70/lb
level. In Platts' opinion, based on discussions with market sources, spot U3O8
transactions this week are likely to be concluded within the range of
$58-$63/lb U3O8.