TradeTech Uranium Spot Price Reaches Two-Year High in 2010 -- Highest Spot Price Recorded Since August 2008
TradeTech's Uranium Spot Price Indicator climbed nearly 40 percent in 2010 to end the year at US$62.00 per pound U3O8?the highest spot price recorded since August 2008.
Denver, CO (PRWEB) January 3, 2011
A declining trend in uranium prices that began with the global financial crisis in 2008 and continued into 2009 was reversed in 2010, as TradeTech's Uranium Spot Price Indicator climbed nearly 40 percent to US$62.00 per pound uranium oxide (U3O8) by year end.
TradeTech's uranium spot price began the year at $44.50 per pound U3O8 and fell to an annual low of $40.50 on February 28, before prices began to strengthen at mid year. The price increase was spurred further in November when the spot price rose above the $60.00 level for the first time since August 2008. "China's ambitious nuclear power expansion plan and the signing of two new contracts for its long-term uranium supply attracted renewed interest from the financial and investor sectors and propelled the price movement," said TradeTech President Treva E. Klingbiel. "Additionally, the emergence of significant mid- and long-term demand combined with discretionary buying to exert further pressure on prices during the fourth quarter," Klingbiel said.
The increase in the spot price was also supported by record spot market activity, with annual spot sales volume reaching 42.8 million pounds U3O8. The last time spot market activity was close to this level occurred two decades ago, when 1990 spot sales volume totaled 40.6 million pounds U3O8. "December sales of more than 2.2 million pounds U3O8 brought 2010 spot market volume to the record level, as producers, traders, and intermediaries attempted to place material before year end," Klingbiel said.
Presently, spot uranium supply remains extremely thin as most sellers hold firm to offer prices and wait for increased demand during the first quarter of 2011. While spot demand is forecast to increase in the first quarter of this year, January is a traditionally slow month for the uranium spot market and prices are expected to remain firm or increase slightly, TradeTech noted in its December 31Nuclear Market Review.
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