TradeTech s uranium spot price climbed during the month of October amid renewed buying interest from a variety of market participants and ended the month at US$52 per pound uranium oxide (U3O8) an increase of more than 11 percent compared to the September 30 TradeTech Exchange Value of $46.75(1).
The steep price hike, the largest increase in TradeTech s Exchange Value since November 2008, was fueled by greater demand from utilities, producers, and traders, TradeTech reported in its October 31 "Nuclear Market Review." The uranium spot price strengthened throughout October, driven largely by the entrance of utilities in the market, which were seeking offers for spot, mid- and long-term deliveries. This increase in demand encouraged sellers and led to steadily higher prices in offers and transactions, said TradeTech President Treva E. Klingbiel. Uranium producers were also active buyers in October, which provided further support for higher prices. Demand in the term uranium market was extremely strong as well, with a number of utility buyers evaluating mid- and long-term offers.
For the month of October, TradeTech reported total spot market sales volume of more than 4.8 million pounds U3O8, which was transacted in 36 deals. Total year-to-date volume stands at 37.4 million pounds U3O8 equivalent, compared to 28.3 million pounds U3O8 equivalent transacted during the same period in 2009.
Added utility and producer demand is expected to emerge in November and TradeTech expects uranium spot market prices to remain firm or increase slightly.
(1) TradeTech s Exchange Value reflects the company s judgment of the price at which spot and near-term transactions for significant quantities of natural uranium concentrates (U3O8) could be concluded as of the last day of the month.
The steep price hike, the largest increase in TradeTech s Exchange Value since November 2008, was fueled by greater demand from utilities, producers, and traders, TradeTech reported in its October 31 "Nuclear Market Review." The uranium spot price strengthened throughout October, driven largely by the entrance of utilities in the market, which were seeking offers for spot, mid- and long-term deliveries. This increase in demand encouraged sellers and led to steadily higher prices in offers and transactions, said TradeTech President Treva E. Klingbiel. Uranium producers were also active buyers in October, which provided further support for higher prices. Demand in the term uranium market was extremely strong as well, with a number of utility buyers evaluating mid- and long-term offers.
For the month of October, TradeTech reported total spot market sales volume of more than 4.8 million pounds U3O8, which was transacted in 36 deals. Total year-to-date volume stands at 37.4 million pounds U3O8 equivalent, compared to 28.3 million pounds U3O8 equivalent transacted during the same period in 2009.
Added utility and producer demand is expected to emerge in November and TradeTech expects uranium spot market prices to remain firm or increase slightly.
(1) TradeTech s Exchange Value reflects the company s judgment of the price at which spot and near-term transactions for significant quantities of natural uranium concentrates (U3O8) could be concluded as of the last day of the month.
