PRZOOM - /newswire/ -
Sarasota, FL, United States, 2006/06/14 - According to TradeTech LLC, U.S. utilities are looking at tight supplies. Russia’s Rosatom head threatens American utilities with no HEU-2. Combine those with an active hurricane season and we may see higher uranium prices before summer’s end..
StockInterview.com’s Senior Editor James Finch noted a confluence of indicators in his recent Market Outlook Journal column, which began with an announcement on the TradeTech LLC website, “Buyers are expected to compete aggressively for this material and TradeTech expects uranium prices to continue their upward climb in June.”
Finch noted Russia’s ongoing squabble with the U.S. Department of Commerce, and remarks recently made by Sergei Kiriyenko, head of Russia’s Federal Agency for Nuclear Power, to U.S. utilities and about the future of the HEU deal with the United States. He also reviewed the recent hurricane season forecast issued by the Atmospheric Science Department at Colorado State University.
Finch concluded in his assessment, “Russia’s desire for a uranium/nuclear monopoly, hurricanes, tight supplies through the summer and the likelihood of yet another energy crisis before Labor Day could spell a significant boost in spot uranium pricing. It would not surprise us should spot uranium trade closer to $60/pound over the next 100 days.” He also noted any dramatic price spike would be unsustainable, adding, “…but it would be an eye-opener and attract renewed interest in the domestic uranium mining sector.”
Finch warned the Russians are forcing U.S. utilities to consider alternative options to meet their unfilled nuclear fuel demands over the next five years. He wrote, "Should the Russians absolutely confirm there will be no HEU-2 deal, U.S. utilities will be driven to closely investigate working relationships with domestic uranium development companies for reliable nuclear fuel supplies." Finch also noted U.S. utilities have formed a lobbying group, AHUG (Ad Hoc Utility Group), to help end the U.S. Commerce Department's restrictions on Russian uranium.
To read James Finch’s commentary on uranium prices, please visit the Internet news website, StockInterview.com. The Market Outlook Journal feature is entitled, “Even Higher Uranium Prices Ahead This Summer,” and can be found on the journal page.