Washington (Platts)--29Apr2008

Uranium's long-term price has dropped to around $90 a pound U308, the
first change in this indicator in about 11 months. In its April 28 report, Ux
Consulting lowered its long-term price by $5/lb to $90/lb, saying that "a
majority of base prices in long-term offers are still grouped right at the
previous $95 reported price; however, a new lower price level has started to
emerge." TradeTech, which kept its long-term price at $95/lb in its April 25
report, is likely to drop its long-term price later this week, a market
analyst said. While some sellers are still making offers at $95/lb, there are
"no willing buyers" at that level, this analyst said, adding that he was aware
of at least one -- and possibly several -- recent offers with a long-term base
price below $90/lb. The spot price, meanwhile, remained at $65/lb this week,
according to both TradeTech and Ux Consulting. Buyers were said to be holding
back from entering the market, waiting to see if the price continues to drop.
Sellers, on the other hand, appear reluctant to make any offers now below
$65/lb. According to Ux Consulting, "Buyers and sellers are at an apparent
stand off with respect to spot delivery." The Platts' NuclearFuel spot uranium
price range for this week was $61-$67/lb U3O8.