Uranium spot price firms

The spot price for uranium oxide noted a modest advance of 25 cents to US$40.75/lb on March 8. European conversion rates remained unchanged at US$8.00/kgU while North American rates slipped by US$0.25 to US$41.75/kgU, according to UxConsulting

Month-end spot prices on February 22 stood 75 cents lower at US$41.75/lb. TradeTech reports a total of 15 transactions during the month with sellers discounting offer prices to attract buyers. Demand of late has been driven by buyers looking for discounted rather than necessary purchases. The postponement of a new uranium fund, Uranium Investment Corporation, added further malaise to the market as an expected rise in demand from the fund did not materialise in the course of the month. Prices were further sent downward by extra supply as the US Department of Energy (DoE) brought some of its excess inventories to the market. During this year, the DoE envisages the sale of 1337tU as UF6 (2.35mlb U3O8).

However, the long-term view remains a positive one as the world’s reactor requirements are well ahead of the mineral’s primary production and forecast to rise significantly over the next decade.