Transcript from Trade Tech journal for the week ending 25 June 2010 follows... After several weeks of inactivity, buyers returned to the spot uranium market this week. A US utility entered the market seeking offers for 260 thousand pounds U3O8 or U3O8 contained in UF6; offers are due July 20. In addition, four utilities and two intermediaries are actively seeking offers for spot deliveries. Three transactions totaling over 500 thousand pounds U3O8 equivalent were concluded this week and another transaction totaling 200 thousand pounds U3O8 is expected to close early next week.
Buyers showed an increased willingness to pay higher prices as the week came to a close. As a result, TradeTech?s Spot Uranium Price rose $0.25 to $41.00 per pound U3O8.
A number of buyers believe that the market price has reached the bottom and have moved to acquire material in anticipation of a future price increase. This view was reinforced by the announcement that China has moved to secure long-term contracts with primary suppliers. Although market participants have long pointed to China?s nuclear program as the impetus for future demand growth, the recent announcements confirm that the country is taking action now to lock in future supplies. This surge in buying interest comes just as the US Department of Energy (DOE) enters the market to sell the final lot of inventory being sold in 2010 to fund cleanup efforts at the Portsmouth enrichment facility. USEC has requested bids on behalf of DOE for just over 250 tU of UF6. Bids are due to USEC no later than July 2, with delivery to occur on August 6, 2010.
New demand emerged this week in the term uranium market. A US utility issued a Request for Proposals for 200 tU as UF6 or equivalent U3O8 to be delivered in 2011 and 2012. In addition, the utility is seeking offers for up to 450 tU as U3O8 or equivalent U3O8 for delivery in 2015 and beyond. The utility has requested that offers be submitted by July 20. One transaction, involving the sale of 23 million pounds U3O8 with delivery extending to 2020, is reported this week. One US utility, seeking 600 thousand pounds U3O8 equivalent per year in 2016-2021, continues to evaluate offers. One non-US utility is reviewing offers for over 1.5 million pounds U3O8 to be delivered between 2011 and 2015. One non-US utility is looking for up to 2.6 million pounds U3O8 for delivery beginning in 2014. Another non-US utility is seeking material for delivery in 2010-2016. One US utility is seeking offers for over 1 million pounds U3O8 with deliveries beginning in 2011.
How anyone here looked at BKY ?
Cait
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