us doe release more uranium on the market

More U supplies coming.....

http://www.uranium.info/in_the_market.php

May 16, 2014 - The spot uranium price dropped again this week after a brief respite from the consistent decline that has gripped the market since January. The US government took center stage this week with the release of two important documents—the US Department of Energy’s (DOE) Secretarial Determination regarding management of its excess uranium inventory and the Energy Information Administration’s (EIA) 2013 US Uranium Marketing Annual Report. DOE’s latest Secretarial Determination confirmed the Department would continue to release uranium inventory into the market. The determination allows for sales or transfers of no more than 2,705 tonnes (7.03 million pounds U3O8) of natural uranium or natural uranium equivalent for calendar years 2014-2022. This represents an increase over the quantities contained in DOE’s 2013 Excess Uranium Inventory Management Plan, which called for transfers to drop to less than 1,700 tonnes (4.42 million pounds U3O8) in 2018. US Energy Secretary Ernest Moniz said that the Department found there would be no adverse material impact on the domestic (US) uranium industries as a result of the transfers. The Uranium Producers of America issued a statement challenging the Secretarial Determination saying that DOE is “violating its legal obligation to ensure these transfers do not have an adverse material impact on the domestic industry” and that its members had provided the Department with substantial information about the current state of the industry, which was not considered. The EIA’s 2013 US Uranium Marketing Annual Report, also issued this week, confirmed that US utilities are moving away from long-term contracting with deliveries under long-term contracts accounting for 46.1 million pounds U3O8 equivalent, as compared to 48.9 million pounds reported for 2012. The report highlights purchases of 57 million pounds U3O8 delivered to US nuclear plant operators last year, the majority of which was derived from foreign suppliers. Utilities and intermediaries were drawn into the market as prices dipped below $29.00 per pound U3O8. A total of eight transactions are reported for the week. Traders and intermediaries participated as sellers. One US utility entered the market seeking offers for both spot and term deliveries. The utility has requested offers be submitted no later than June 6, for 300,000 pounds U3O8 for delivery later this year or early next year. However, the increase in buying interest did little to staunch the decline in prices with sellers consistently dropping prices in order to secure business. TradeTech’s Weekly U3O8 Spot Price Indicator fell $0.75 to $28.25 per pound U3O8--the lowest level recorded since April 2005.