~~ Uranium Haven ~~

[fazoolius]

Spot uranium ticking lower
Leonard Zehr, today at 10:42 AM EDT

Prices for uranium in the spot market have dropped yet again because of excess supply and anemic demand, drawing ever closer to quotes on long-term contracts.

Ux Consulting Co. has cut the spot price by $10 (U.S.) a pound to $110, while the spot price at the other industry bible, TradeTech, fell $3 to $120.

Ux contends that a correction is taking place in the spot market, with “motivated sellers aggressively liquidating supplies.”

The upcoming U.S. Department of Energy auction of up to 200 million tonnes of uranium hexafluoride, containing about 520,000 pounds of uranium oxide, in eight lots may be a catalyst for the spot weakness. “Sellers may be trying to place material prior to offers due in mid-September,” Ux suggests.
Looking forward, Ux Consulting sees “fewer sellers willing to sell at lower prices, but believes prices could retreat in the near-term and rebound once determined sellers have sold out and-or spot demand picks up.”

The long-term market remains active with 11 buyers looking for a total of 27 million pounds of uranium, with prices unchanged at $95 a pound.