Uranium Spot Price to Trend Upward

IFP

In the week ended 20 May, seven transactions were concluded as the uranium price retreated after an increase noted in the week on the back of persistent rumurs that Fluor-B&W reached an agreement with a buyer for the purchase of up to 450tU as UF6 per quarter for the next 10 quarters. But the sale was not confirmed later in the week and interest waned as prices rose.

By the end of the week, the spot price was reported at US$56.00/lb, according to TradeTech reports. After the weekend, The Ux Consulting Company reported a WoW fall of US$0.25 in its uranium price indicator to US$57.50/lb.

While the Fukushima disaster has had no doubt a negative effect on the uranium prices, experts indicate that the market will recover. Many key nuclear power capacity nations, such as China, Russia and India, are still continuing to build new reactors, which will push up the demand for the fuel.

The Commerzbank estimates that uranium will climb to US$69/lb this year and continue its upward trend to US$80 the following year. Deutsche Bank puts the price at US$65/lb t his year with US$5/lb annual rises over the next few years.