Red-Hot Resources

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Saturday, July 07, 2007

Spot Price of Uranium Falls Again

According to TradeTech's Nuclear Market Review, the spot price of uranium oxide fell another $2 per pound this week to $133. The long-term price remains at $95. Other nuggets from the latest Nuclear Market Review

Current active spot supply now totals over 3.2 million pounds U3O8 equivalent … Active demand is extremely weak with less than 900 thousand pounds U3O8 equivalent being sought by buyers, all of which can be characterized as discretionary in nature … With no "have to" demand present in the market, sellers are for the first time in many, many months showing a willingness to sell below the current published price in order to attract a willing buyer … This marks the first time since May 2001 that the spot uranium price has dropped in two consecutive weeks.

So the spot price is coming down and the long-term price remains strong. It had to happen sooner or later; let's see what opportunities this presents us.



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