Saturday, April 07, 2007
Uranium jumps to $113 a pound
StockInterview has the details.
UPDATE April 8, 2007:
Another source for the $113 number.
UPDATE April 10, 2007:
"...there is more of this to come."
A modest lot of 100 thousand pounds U3O8, offered by tiny privately owned Texas-based Mestena Uranium LLC, drove bidders to establish a new record spot uranium price. “The spot uranium price rose dramatically this week, jumping $18 to $113/pound U3O8, following the results of the sealed-bid auction,” according to Nuclear Market Review (NMR) editor Treva Klingbiel.The price is up 57% just this year.
Klingbiel gave three reasons for the aggressive bidding: ERA’s recent mine flooding, continued interest from speculators and utilities seeking significant quantities for near-term delivery. New demand from a U.S. utility also emerged in the long-term uranium market this week. The long-term uranium price remains unchanged at US$85/pound.But the real story behind the long-term price is that contracts written nowadays have clauses for adjusting the price updwards to follow the spot price, pricing floors, and other stuff that's good for sellers and bad for buyers. For contracts, you need to look at more than just the price to get a sense of changing dynamics.
UPDATE April 8, 2007:
Another source for the $113 number.
UPDATE April 10, 2007:
"...there is more of this to come."
// posted by Bruce @ 7:03 AM 
