Uranium Spot Price Hits $70.00 P/Lb New 52 Week High

Published on Wednesday January 26 2011

January 26, 2011–The spot uranium price continued its upward climb this week increasing $3.50 to $70.00 per pound U3O8, the highest level reported since April 2008.

CURRENT URANIUM SPOT PRICE

52 Week High 
US$70.00P/Lb

Uranium-oxide concentrate for immediate delivery traded at $70 a pound in the week to yesterday, UxC said in an e-mailed report today, based on the most competitive offer the Roswell, Georgia-based company was aware of. That compares with $68 on Jan. 18, $66 on Jan. 11 and $62.50 on Jan. 4.

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Bullish Signal For Uranium Stocks In 2011

Published on Tuesday January 25 2011

The chart of the monthly uranium spot price above shows the current trading dynamic. Note the quite large falling wedge that was building between 2009 and 2010.

Now the price of uranium has broken out of this falling wedge and appears to be in a new uptrend.   Given the nature of the euphoric price peak near 140 that occurred in 2007 I am tending to think that the uranium price in the year(s) ahead will at the very least test this old high.

In elliottwave terms I believe the current leg up would be primary wave 3 up which tends to be the strongest and longest wave.

If we compare the uranium spot price structure above to the gold price it seems as though uranium represents a much better risk reward in that we seem to be in a much earlier phase of the current run up.  

The gold price and the gold mining stocks have travelled so far and so long that the uranium miners and the uranium price seem to pale in comparison.  And in terms of supply demand, the uranium sector does appear to be a niche energy sector play with only a small handful of uranium mining stocks to choose from whereas in the gold sector we already see that there are more than a few hundred gold mining stocks to choose from.

The uranium mining stocks such as Uranium Resources, Inc. (NASDAQ:URRE), Global X Uranium ETF (NYSE:URA), Uranerz Energy Corp. (AMEX:URZ), Denison Mines Corp. (NYSE:DNN), Cameco Corp. (NYSE:CCJ) Paladin (ASX-PDN) also seem like they are in only round 3 of a 10 inning ball game to the upside.  I am basing this judgement on the longer term chart structures of the uranium mining stocks, the long 2 to 3 year bases, and the enormous breakout volume out of these bases within the last 6 months.

So I think it could be prudent to embark on a uranium mining stock accumulation stance for the next year or two as we see the uranium spot price start to ascend higher.

The uranium mining stocks have moved very fast during the last 6 months.  They may be due for a major correction the next month or two, but I am looking to accumulate them on some meaningful correction during the next couple of months.

Of course it is unknown whether or not the uranium price will be able to launch a repeat persistent performance as it did into 2007.  Past performance is no guarantee of future results as they say.

But whether the uranium price travels up in a straight line or more of zig zag pattern seems to be besides the point.  The long term monthly chart above shows that longer term momentum is clearly indicating higher prices.  Uranium prices can stall out but they are likely to maintain forward momentum based on my read of the above chart.

Written By Thomas Carreno From Best Online Trades 

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Uranium Price Keeps Climbing

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

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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Uranium On The Move

Published on Wednesday December 01 2010

Spot uranium is now sitting at $US61 a pound, a dramatic improvement since June when it only just found support level at a whisker over $US40/lb.

URANIUM prices continue to surge on the back of a looming new wave of investment by China in nuclear power.

So the news today that some Labor federal politicians now want the party to have a serious debate on the subject of nuclear power in Australia - which, unlike wind or solar power, provides base load, reliable electricity at an economic cost - comes just as it is starting to dawn on investors that uranium demand is about to take a big leap.

The latest report from the commodities team at Canada’s Scotiabank notes that China’s 12th five-year plan will call for the doubling of nuclear energy’s role in the country. The report says it is clear that a renaissance in nuclear energy is genuinely under way. China’s National Development and Reform Commission’s Energy Research Institute estimates that the number of nuclear reactors will grow from today’s 13 to the equivalent of more than 80 by 2020. The details of the new five-year (2011-2015) will be released in the first months of next year.

Also boosting spot uranium prices was news of large, long-term supply agreements: one, France’s Areva will supply 52 million pounds at $US67/lb to China Guangdong Nuclear Power Corp; two, Canada’s Cameco will sell that Chinese company 25m pounds (along with 23m pounds to China National Nuclear Association; and, three, the state-owned nuclear power company in Kazakhstan will also supply China Guangdong with 63m pounds by 2020. As Scotiabank notes, these contracts will tie up considerable quantities of uranium.

World production totals 140m pounds a year.

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Uranium Spot Price News Update November 07-2010

Published on Sunday November 07 2010

 November Spot Hits US$56.00P/Lb.


Indicative Weekly Spot Ux U3O8 Price as of Sunday November 07, 2010

Trade Date: 05/11/2010
U3O8 Price (lb) US$56.00 [   +US$2.00  ]

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Uranium Spot Price News Update November 03-2010

Published on Wednesday November 03 2010

 November Spot Hits US$54.00P/Lb. 
US$2.00 increase overnight.

Indicative Weekly Spot Ux U3O8 Price as of November 03, 2010

Trade Date: 03/11/2010
U3O8 Price (lb) US$54.00 [ +US$2.00]

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Uranium Spot Price News Update Oct 21-2010

Published on Thursday Oct 21 2010

 October Spot Hits US$51.50P/Lb. 
US$2.00 increase overnight.

Indicative Weekly Spot Ux U3O8 Price as of October 21, 2010

Trade Date: 21/10/2010
U3O8 Price (lb) US$51.50 [ +US$2.00]

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