RBC Capital Markets: Uranium Weekly (September 24,...

RBC Capital Markets: Uranium Weekly (September 24, 2013)
According to RBC Capital Markets:

September 24, 2013
Uranium Weekly

Ux Spot Price Up $0.50 to $35.15/lb; TradeTech Up $0.90 to $35.25/lb

Ux spot price indicator was up $0.50 to $35.15/lb and TradeTech was up $0.90 to $35.25/lb. Ux reported that spot market activity picked up in the middle of last week, then slowed by the end of it. The stall in activity was likely due to market participants awaiting the outcome of a request by a U.S. utility for spot delivery of close to 300,000 pounds U3O8.

Ux reported 1.7 million pounds U3O8e in 15 transactions during September 2013 (month-to-date).

The 2013 YTD spot transaction volume is now 32.3 million pounds U3O8e in 226 transactions. At this time last year, the 2012 spot transaction volume was 26.2 million pounds U3O8e in 165 transactions.

Term Market

Ux term price indicator was unchanged at $55.00/lb, and TradeTech was unchanged at $53.00/lb (quoted monthly at month-end). Ux reported that the term market remains moderately active with several utilities either awaiting or evaluating offers.

A U.S. utility entered the market seeking over one million pounds U3O8e with delivery starting in 2016. A non-U.S. utility is seeking offers for just over one million pounds U3O8e contained in UF6 with delivery over the 2015 to 2019 time period.

A non-U.S. utility is requesting offers for approximately 1.2 million pounds U3O8e for delivery over a six year period.

A non-U.S. utility continues to evaluate offers for approximately 900,000 pounds per year U3O8e with delivery over the 2015 to 2020 time period.

A U.S. utility is seeking uranium contained in EUP with delivery beginning in 2015. A number of U.S. and non-U.S. utilities are considering entering the term market to take advantage of current price levels.