Saturday, December 16, 2006
uranium feeding frenzy spotted
TradeTech reports that the uranium spot price jumped up $7 this week to $72 per pound.
It will be very interesting to see what UxC reports on Tuesday of next week. Their last report showed a price of $65.50, up $2.50 from the prior week. If they do report a $72 spot price, I wouldn't be surprised if the price actually drops a bit afterward. I mean, it's like, overdue.
UPDATE Tuesday 12/19/06:
Yep, UxC is showing a $72 spot price.
Bids were due December 15 to a US producer auctioning 260 thousand pounds U3O8. Other sellers, in anticipation of future price increases, have grown increasingly reluctant to release material into the market, and thus competition for the auction material was expected to be aggressive. Meeting this expectation, competition was indeed fierce, as buyers exhibited a willingness to pay a strong premium in order to purchase material at a fixed price. The producer received multiple bids with the winning bid at, or very near, the December 15 Uranium Spot Price Indicator of $72.00 per pound U3O8.As far as I can tell, this is one auction only and not any other deals. The spot market is very thin with sometimes just a single transaction, if that.
It will be very interesting to see what UxC reports on Tuesday of next week. Their last report showed a price of $65.50, up $2.50 from the prior week. If they do report a $72 spot price, I wouldn't be surprised if the price actually drops a bit afterward. I mean, it's like, overdue.
UPDATE Tuesday 12/19/06:
Yep, UxC is showing a $72 spot price.
// posted by Bruce @ 7:52 PM 
