Spot uranium prices have weakened

By Tom Stundza -- Purchasing, 4/16/2008 11:32:00 AM

The spot-market price has slipped below $70/lb for uranium grade U3O8, according to price-reporting firms TradeTech (citing $69) and Ux Consulting (noting $68). In December, uranium was nearing a record by selling at $93 and then slipped to $90 for a couple of months before going into a slide.

Now, Platts.com says that some analysts are predicting still more weakening of the material used to make nuclear fuel because demand is thin. That’s because there are market reports that the U.S. Department of Energy will sell several million pounds of uranium later this year and that could drive prices lower, perhaps well below $60. However, some analysts believe a market price of $65 might spark enough buying interest to reverse the downward price trend.