Strathmore Minerals Corp STHJF

Trade Tech article.

[easyryder]

June 25, 2010–After several weeks of inactivity, buyers returned to the spot uranium market this week. A US utility entered the market seeking offers for 260 thousand pounds U3O8 or U3O8 contained in UF6; offers are due July 20. In addition, four utilities and two intermediaries are actively seeking offers for spot deliveries. Three transactions were concluded this week and another transaction totaling 200 thousand pounds U3O8 is expected to close early next week. Buyers showed an increased willingness to pay higher prices as the week came to a close. As a result, TradeTech’s Spot Uranium Price rose
.25 to $41.00 per pound U3O8. A number of buyers believe that the market price has reached the bottom and have moved to acquire material in anticipation of a future price increase. This view was reinforced by the announcement that China has moved to secure long-term contracts with primary suppliers. Although market participants have long pointed to China’s nuclear program as the impetus for future demand growth, the recent announcements confirm that the country is taking action now to lock in future supplies. This surge in buying interest comes just as the US Department of Energy (DOE) enters the market to sell the final lot of inventory being sold in 2010 to fund cleanup efforts at the Portsmouth enrichment facility. USEC has requested bids on behalf of DOE for just over 250 tU of UF6. Bids are due to USEC no later than July 2, with delivery to occur on August 6, 2010. read more