Got this from u308.biz Remember way back to last week when there...

Got this from u308.biz

Remember way back to last week when there was so much excitement about the rallying uranium price? Uh, yeah. So do we. Unfortunately, the market has taken a serious turn for the worse. Industry consultant TradeTech reported that uranium’s spot price plunged by US$6 a pound (or 13.6%) over the past week to US$38. That is the second-largest week-over-week drop since 1996. TradeTech noted that buyers simply exited the market, forcing sellers to slash their price expectations. The spot uranium market is small and illiquid, so big price swings are common. But TD Securities analyst Greg Barnes said the action of the past few weeks (a big rise followed by an abrupt crash) is among the most volatile he has seen in years. In his view, the only comparables are the price collapse following the Fukushima disaster in 2011, and the rapid rise during the bull market in 2006 and 2007. Mr. Barnes thinks the current volatility is more reflective of trader positioning in a thin market than utilities exhibiting strong fundamental demand. He is not convinced that the rapid drop will be enough to trigger a big wave of buying by utilities. “We have heard from several sources that the recent price rally has been driven more by transient supply tightness and that over the medium term, the market remains well supplied,” he said in a note. That view is likely shared by others. The general feeling among analysts, investors and uranium mining companies is that there is plenty of excess supply in the market for now, but it should disappear over the next few years as Chinese demand ramps up and more of Japan’s reactors are restarted. Mr. Barnes said he will be monitoring the uranium market closely over the next few weeks. But for now, he is maintaining his price forecasts of US$35, US$40 and US$55 a pound for 2015, 2016 and 2017, respectively. His long-term price is US$70. Many experts think a price in that range is necessary to encourage more production.

certainly bouncing around ATM.