Uranium Surge Sees Traders ‘Scared Into Buying,’ UxC Reports
By Jason Scott -
Jan 24, 2011 7:39 PM MT
Uranium prices rose 3 percent in the past week, bringing gains of the nuclear fuel to more than 70 percent in the past seven months, according to Ux Consulting Co.
Uranium-oxide concentrate for immediate delivery traded at $70 a pound in the week to yesterday, UxC said in an e-mailed report today, based on the most competitive offer the Roswell, Georgia-based company was aware of. That compares with $68 on Jan. 18, $66 on Jan. 11 and $62.50 on Jan. 4.
Traders may be “scared into buying, fearing that if they wait, they would end up paying much higher prices,” UxC said. “This behavior does appear to be propelling the market for now, as more buyers have emerged as the price has ticked up.”
Uranium prices, which reached a high of $136 in 2007 before falling to about $40, have surged since mid-2010 as China increased the use of nuclear power to curb emissions from burning coal.
Spot prices may advance to $75 a pound by the second quarter after China’s imports of the nuclear fuel in December gained 38 percent over the previous month, Macquarie Group Ltd. said in a Jan. 22 report.
To contact the reporter on this story: Jason Scott in Perth at Jscott14@bloomberg.net
To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net.
