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Uranium Prices Increase 3 Percent; Traders Focus on $70 a Pound, UxC Says

By Jason Scott - Jan 18, 2011 10:10 AM GMT+0800

Uranium prices rose 3 percent in the past week and traders are focusing on whether the nuclear fuel will test the $70 a pound level, according to Ux Consulting Co.

Uranium-oxide concentrate for immediate delivery traded at $68 a pound in the week to yesterday, UxC said in an e-mailed report today, based on the most competitive offer the Roswell, Georgia-based company was aware of. That compares with $66 on Jan. 11 and $62.50 on Jan. 4.

"It is taking some time once again for the market to become fully engaged at the beginning of the year," UxC said. Some sellers are now "content to wait to see if the spot price will break the $70 level," according to the report.

Uranium prices reached a high of $136 in 2007 before falling to about $40 over the last few years as the rapid expansion of production from Kazakhstan saw supply outstrip demand, according to UxC. The price of the fuel surged 40 percent in 2010 as China increased the use of nuclear power to curb emissions from burning coal.

Holidays in the U.S., Russia and Asia in recent weeks mean the market hasn't been able to react to this month's price increases, UxC said.

http://www.bloomberg.com/news/2011-01-18/uranium-prices-increase-3-traders-focus-on-70-uxc-reports.html