Holy Cow! Uranium Spot Price Drops to $85 per Pound
TradeTech's Nuclear Market Review reveals:
The spot price for uranium dropped dramatically over the course of August. At the outset of the month, TradeTech’s Exchange Value stood at $123.00 per pound U3O8, and now at month-end, it stands at $85.00 per pound U3O8. This decrease in the price is largely due to the presence throughout the month of sellers driven by cash requirements, such as the US Department of Energy (DOE).
The trigger was the sale of UF6 (equivalent to 520,000 pound of uranium oxide) sold by the US government. Since buyers knew the US government would go through with the sale no matter what, they put in very low bids. Several of the low bids were accepted.
Strangely, the long-term contract price is STILL at $95 per pound. The spot price is now below the contract price! How long do you think that will last?
We still seem to be seeing a "buyers' strike", as buyers put off purchases and hold out for lower prices. I think that will come back to bite them, but I could be wrong.
The spot price for uranium dropped dramatically over the course of August. At the outset of the month, TradeTech’s Exchange Value stood at $123.00 per pound U3O8, and now at month-end, it stands at $85.00 per pound U3O8. This decrease in the price is largely due to the presence throughout the month of sellers driven by cash requirements, such as the US Department of Energy (DOE).
The trigger was the sale of UF6 (equivalent to 520,000 pound of uranium oxide) sold by the US government. Since buyers knew the US government would go through with the sale no matter what, they put in very low bids. Several of the low bids were accepted.
Strangely, the long-term contract price is STILL at $95 per pound. The spot price is now below the contract price! How long do you think that will last?
We still seem to be seeing a "buyers' strike", as buyers put off purchases and hold out for lower prices. I think that will come back to bite them, but I could be wrong.
Labels: uranium
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posted by Sean Brodrick @ 12:46 PM
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