here is the latest uranium market news from platts. this is the...

here is the latest uranium market news from platts. this is the first update in many months from these guys. always interesting.

The uranium daily spot price was $39/lb Monday, down 30 cents from a week ago, price reporting company TradeTech said.

The daily spot price had held steady at $39.30/lb from April 2 through April 9, falling 30 cents the next day to $39/lb, where it has remained, TradeTech said. This is the lowest daily spot price since the company reported it at $39/lb on March 2.

A market source interviewed Friday attributed the uranium spot market's relative low activity level to the fact that demand is "very discretionary, with utilities not really needing to buy material now." These companies will buy material, he said, "when they see a good price and act to add material to inventory."

TradeTech, in its report for the week ended Friday, said "several" transactions were concluded Friday at around $39/lb, although it did not provide the volume of deals concluded.

"The impetus for the price drop is largely tied to feedback from utilities evaluating mid- and longer-term Requests for Proposals" to buy material, it said. "Although the utilities are still officially evaluating [U3O8 purchases], several sellers had offers expire, thus freeing up material."

There will "have to be a change in utilities' mindset before we see a pickup in market activity," a second market source said Friday, explaining that utilities "will buy exactly what they need just about when they need it."

Meanwhile, David Sadowski, an analyst with Raymond James' Vancouver office, wrote in a note that a Tuesday decision by a Japanese district court to issue an injunction against the restart of two reactors at Takahama "is certainly a negative for the ... uranium space."

Sadowski said that "restarts are a key psychological catalyst for uranium [stockpiles], as they should reduce the perceived overhang of [more than 1 million lb] U3O8 inventory sitting at utilities in Japan (i.e. sending the message they won't get dumped)" on the market.

TradeTech on Friday reported a weekly spot price of $39/lb, down 30 cents from April 3.

Price reporting company Ux Consulting on Monday posted a weekly U3O8 spot price of $39/lb, down 25 cents from April 6.

Ux's Broker Average Price, or BAP, on Monday was $39.13/lb, down 6 cents from Friday. Ux reported a BAP bid-offer spread Monday of $38.75-$39.50/lb, with the bid down 13 cents and the offer unchanged from Friday. The BAP is based on information from Evolution Markets and Numerco Ltd., Ux said.

Market sources expect spot U3O8 transactions over the next week to be concluded within a range of $39-$39.75/lb.

http://www.platts.com/latest-news/e...aily-spot-price-slides-30-cents-from-21290132