Slumped Buying Interest Weighs on Prices

摘要

After last week’s surprising $4 climb, the spot uranium price cooled a bit this week, settling at $35.38 per pound of U3O8, according to NIW’s Uranium Price Panel. Market sources largely attributed the leveling off to a lack of purchasing interest that had been present from intermediaries a week ago. Two people said a seller, characterized as “aggressive,” was unable to find a firm buyer at $36/lb, but NIW was unable to confirm that. By contrast, one source said this week’s price was essentially a return to normal, attributing last week’s high level of purchasing interest to rumors that one or more traders were attempting to cover their potential future obligations in anticipation of positive news on a supply contract, perhaps with either Duke Energy or Canadian utility Ontario Power Generation. The effects of that buying interest may have been exacerbated further by earlier spot purchasing interest from Extract Resources UK, the marketing arm of Hong Kong-based Taurus Minerals. Taurus is majority-owned by China General Nuclear Power Co. and itself owns Namibian-based Swakop Uranium, which is developing the Namibian Husab project. Extract’s purchase meant there were fewer available pounds when buying interest on the part of traders picked up.