PRZOOM - /newswire/ -
Sarasota, FL, United States, 2006/11/13 - Sprott Asset Management Market Strategist Kevin Bambrough told StockInterview, “Utilities are scrounging around looking for contracts in size rather than entering a thin spot market.” On Friday, TradeTech increased its spot uranium price to $61/lb..
Sprott Asset Management Market Strategist Kevin Bambrough told StockInterview.com, “Utilities are scrounging around looking for contracts in size rather than entering a thin spot market.” He compared the stand-off between buyers and sellers to a poker game.
This was confirmed by the increase of the weekly spot uranium price indicator, issued Friday by TradeTech to $61/pound (uranium.info). In an email Gene Clark wrote, “Eight utilities and three intermediaries are chasing over five million pounds of U3O8 equivalent this week. Sellers who needed to fulfill their year end cash needs appear satisfied.” He added that over twenty utilities are now hoping to obtain more than 55 million pounds of U3O8 for long-term delivery beginning as early as next year.
Bambrough also sees speculators competing for the tight uranium supply. “I'm already hearing rumblings from many sources that another round of non-utility buying is entering the physical market now,” he told StockInterview.com. “The forces majeures may not have gone out yet, but those with Cameco’s Cigar Lake production contracts aren't likely to sit around and wait 3 months for the official notice,” Bambrough explained. “If they do, they’ll just get front-run by speculators.”
Strathmore Mineral’s David Miller said to expect higher uranium prices over the next 24-36 months, adding the spot uranium price would go a lot higher before stabilizing.
The feature article entitled, “Spot Uranium Price Creeps Up to $61/Pound as Buyers Begin to Worry About Supply,” appears on the financial news website.
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