Washington (Platts)--10Jun2008

After several weeks of conflicting signals about whether a bottom has
been reached in this current spot uranium market cycle, a growing number of
analysts are feeling more confident that the spot price will move above $60 a
pound U3O8 in the coming weeks rather than continue to weaken.

Price-reporting firm TradeTech late Friday kept its spot price at $60/lb,
saying that "sellers are testing whether the market has indeed bottomed at
current price levels."

The company added that it was seeing fewer sellers willing to discount
uranium in order to make a deal, and that "the price gap between willing
buyers and willing sellers remains narrow."

But some analysts said they do not expect the price to show much movement
for at least a month if demand does not pick up. And there are still reports
of at least one trader that may be willing to part with material at a price
slightly below $60/lb. "I think I could still buy 100,000 pounds at $59 and
change," one broker told Platts. He added, however, that he is more confident
this week that there will be an uptick in the price, but that it will take
some negative supply news to push the price above $65.

The Platts NuclearFuel range for the week was $58-$64/lb U3O8.

--Mike Knapik, newsdesk@platts.com