stubborn spot price Uranium spot price drifts down on discretionary demand
Washington (Platts) - The spot price of uranium is about $35.25/lb, down 5 cents from Friday, as some sellers in the market, seeing demand wane, have lowered offer prices to conclude deals, analysts said Tuesday.
Price publisher TradeTech said Friday in its month-end report that "utilities were active buyers" in the market February, but their purchases mostly were discretionary.
"Without the presence of requirements-driven buying, sellers were faced with lowering offer prices to attract buyers or [forgo] sales opportunities altogether," TradeTech said.
A market source said Tuesday that the spot price is drifting down, but he does not expect it to fall much further. He said the spot price will get support when Toronto-based Uranium Participation Corp. enters the market.
The investment holding company said February 6 it had reached an agreement with underwriters to raise about $52 million to buy U3O8 and/or UF6 from the spot market. Market sources previously said that the deal would allow UPC to buy about 1.5 million lb of U3O8-equivalent, about 4% of annual spot demand.
Link to full report: https://www.platts.com/latest-news/electric-power/washington/uranium-spot-price-drifts-down-on-discretionary-21288718