Published on Sunday December 11 2010
Trade Date: Friday Dec 11 2010
UxC U3O8 Spot US $61.00
UxC U3O8 Mid Term US $62.00
UxC U3O8 Long Term US $65.00
Trade Date: Friday Dec 11 2010
UxC U3O8 Spot US $61.00
UxC U3O8 Mid Term US $62.00
UxC U3O8 Long Term US $65.00
Spurred by China, the spot price of uranium has surged nearly 50 percent higher since June.
Sydney, Australia-based Resource Capital Research reports the spot price of uranium at $60 a pound, up from $40.75 in June.
“The recent surge has been driven by Chinese buying, the price impact of which has been exacerbated reportedly by the return of financial investors and hedge funds to the uranium market,” the firm said.
There also has been increased confidence in the outlook for building Chinese reactors, in light of recent memorandums of understanding and long-term sales agreements announced by the Chinese with several uranium suppliers.
In addition, there are “indications of market discipline containing production growth in Kazakhstan,” according to Resource Capital Research.
The spot price is expected to consolidate at around the $60 level, and potentially increase in the first quarter 2011.
“Utility purchases remain discretionary, though timing of demand from long-term Chinese inventory build continues to be a factor and will continue to influence short-term market trends, as will Japanese and Indian utility purchases, which are expected to increase,” according to the analysis.
The long-term contract price is $65 a pound, up from $60 three months ago.
There are 441 nuclear power reactors in operation and 58 under construction.
There were 479 new nuclear reactors planned or proposed globally as of November 2010.
China had the most at 159, followed by India with 60, Russia at 44 and the United States at 31.
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