Uranium Prices Continue to Climb
Denver, Colorado, February 2, 2006—Prices in the uranium spot market rose steadily throughout January, continuing a trend that led to a record price increase last year. The spot market price climbed to $37.50 per pound U3O8 on January 31, as near-term uranium supply remains extremely thin.
The year 2005 was a watershed year for the uranium market, marking the most dramatic rise in the spot uranium price since 1975. Prices at the beginning of the year were US$21.20 per pound U3O8; however, by December 31, the spot price had risen by more than $15, to $36.50 per pound U3O8.
“The shift from a buyers’ market to a sellers’ market that began in 2003 gained new momentum in 2005. A driving force behind this increase was the entry into the market of a new type of buyer—the investor/speculator,” said Treva Klingbiel, president of TradeTech, LLC, a nuclear energy market consultant. Total spot volume for 2005 was slightly less than 30 million pounds U3O8 equivalent, and investors acounted for over 36 percent of all spot uranium purchases (approximately 11 million pounds U3O8).
Unlike the buyer category, seller categories changed little in 2005. Traders and intermediaries continue to dominate as sellers in the spot uranium market, accounting for more than 50 percent of all sales concluded last year, according to TradeTech. “One question facing market participants as 2006 begins is whether investors will remain a major influence on demand and continue to exert upward pressure on prices,” Klingbiel said.
TradeTech, and its predecessor companies–NUEXCO Information Services, CONCORD Information Services, and CONCORD Trading Company–has supported the uranium and nuclear fuel cycle industry since 1968, and is widely recognized for its expertise in trading activities and its comprehensive knowledge of the technical, economic and political factors affecting this industry. TradeTech provides expert market consulting, participates in the buying and selling of uranium products and services, and maintains an extensive information database. TradeTech publishes the Nuclear Market Review each Friday and The Nuclear Review, a monthly publication dedicated to the international uranium and nuclear energy industry.
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