Uranium Price, Trading Rise for Fourth Week as Output Curbed By...

Uranium Price, Trading Rise for Fourth Week as Output Curbed

By Yuriy Humber

Nov. 24 (Bloomberg) -- Uranium gained for a fourth week, the longest winning streak this year, as producers curb development of mines and utilities bought on concern prices will keep rising.

Uranium-oxide concentrate for immediate delivery rose $2 to $55 a pound, Denver-based pricing service TradeTech LLC said in a report Nov. 21. Weekly demand totaled 6.5 million pounds, about 2 million pounds more than supply. Last week saw nine deals for 1.4 million pounds, 8 percent more than the previous week.

``Spot uranium demand remains steady,'' TradeTech said. ``Negative news from a variety of producers and the increase in prices over the past few weeks have spurred a number of off- market inquiries.''

Uranium has gained $10 a pound in the past four weeks after producers including Cameco, the world's biggest, cut output and spending on new mines because of the global credit crunch and declining prices this year.

``Supply is choking off and demand is rising,'' said John Wong, a fund manager in London at CQS UK LLP, which has $10 billion under management. ``The forced sellers we saw two months ago are gone. In these capital markets, the producers can't raise cash for new projects, so it'll be 2013 before we see any new supply of significance.''

China National Nuclear Corp., the nation's biggest nuclear plant builder, said Nov. 18 that weaker spot prices will hurt the country's plans to explore for the fuel at home and overseas.

China may raise its 2020 nuclear power capacity target to at least 70 million kilowatts from 40 million kilowatts to help cut greenhouse-gas emissions and curb the effect on power production of delays in transporting coal, the Xinhua News Agency said this month, citing a state official.

The country was forced to shut some coal-fired plants in January after the worst snowstorms in 50 years wrecked railway lines and hampered fuel transportation, leading to electricity shortages affecting half of the nation's 31 provinces. China relies on coal for two-thirds of its energy needs.