uranium

On June 12th, Denison Mines (AMEX: DNN) through Uranium Participation Corp (TSX: UPC) will receive bids for 125 thousand pounds U3O8 for delivery in June.

Later this week, on June 15th, Nufcor offers 200 thousand pounds U3O8 and 100 tUF6.

According to Nuclear Market Review (NMR), “The material is located at Eurodif and available for delivery on June 29th.” TradeTech stood firm on the consulting service’s weekly spot price indicator despite the three dollar discrepancy with competitor, Ux Consulting. NMR editor Treva Klingbiel explained in the June 8th issue, “Demand remains strong with 14 utilities seeking offers totaling approximately 26 million pounds U3O8 equivalent for delivery in 2007 – 2018.”

An AREVA subsidiary, Eurodif is based in southeastern France and enriches uranium for about 23 percent of the world’s nuclear reactors. Eurodif stands for ‘European Gaseous Diffusion,’ and refers to the process utilized to enrich uranium hexafluoride (UF6) in civilian reactors.

Joe McCourt of New York Nuclear held the weekly trading session on Thursday this week, delayed because of the fuel market convention held in Greece. Thursday’s two-hour screen session trading, closed with a bid to buy 10,000 pounds U3O8 at $138/pound and an offer to sell at $155/pound. These are the highest bid/ask prices posted on Uranium Online since trading began.

McCourt wrote in his June 8th edition of FreshFUEL, “With the continued ‘long march’ of the spot price, we could see a cash-futures inversion. If this inversion does happen, the market is saying that it’s better to own U3O8 today than to ‘expect’ to own it at the end of the month.”