Uranium Prices Rise (US$62.5/lb) in Slower Trading After Japan Quake, Ux Says
By Jason Scott - Mar 29, 2011 9:12 AM GMT+0800
Uranium spot prices rose 4.2 percent in a slower market last week following "chaotic" trading in the wake of Japan's biggest earthquake that damaged nuclear reactors.
Uranium-oxide concentrate for immediate delivery gained $2.50 to $62.50 a pound in the seven days ended yesterday, Ux Consulting Co. said in an e-mailed report today. The price is based on the most competitive offer tracked by the Roswell, Georgia-based company.
"The spot uranium market slowed for the second week in a row with respect to overall volume and price movements, but still exhibited decent volume and the price moved in a couple of directions," Ux said in the report.
A magnitude-9 earthquake and ensuing tsunami on March 11 that damaged Japan's Fukushima Dai-Ichi plant and caused radiation leaks triggered selling of the nuclear fuel, which is down $7.25 from the start of the month, according to Ux. The world's worst nuclear crisis since Chernobyl in 1986 prompted officials in China and India to call for reviews of atomic energy programs.
Nuclear-power utilities buy the bulk of their uranium for processing into fuel from mining companies, with the contracts mostly extending beyond a year. The market for immediate delivery, or spot market, allows trading for delivery within a year and includes financial investors. The U.S. government also periodically conducts auctions to reduce stocks.
To contact the reporter on this story: Jason Scott in Perth at [email protected]
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