Uranium Spot Price Fades Amid Global Financial Crisis

Like many commodity markets, the global financial crisis has affected the international market for uranium. TradeTech's weekly uranium spot price dropped $4.00 to $47.00 per pound U3O8 on October 10, which marked the lowest price level since June 2006, and ended the month at $46.00 per pound.

Denver, CO (PRWEB) November 5, 2008 -- The uranium market experienced a price decline in October, with TradeTech's spot uranium price sliding from $52 to $45.00 per pound, before rebounding slightly to $46.00 per pound U3O8 on October 31.

Like many commodity markets, the global financial crisis has affected the international market for uranium. In fact, TradeTech's weekly uranium spot price dropped $4.00 to $47.00 per pound U3O8 on October 10, which marked the lowest price level since June 2006.

Since 2004, investors and hedge funds have been major participants in the spot uranium market, primarily as buyers. However, the recent economic downturn and credit crisis prompted a large sell-off from this sector as inventory holders were forced to liquidate assets. "This sell-off created downward pressure on the spot price and forced other sellers to cut their prices to remain competitive in a market where demand has remained primarily discretionary and extremely price sensitive," said TradeTech President Treva Klingbiel.

Nonetheless, discretionary buyers were attracted to the market by the drop in prices and transaction volume for October was high. "The steep spot price decline attracted significant buying interest throughout October. It now appears the decline has abated and the spot uranium price is showing signs of firming," Klingbiel added.

TradeTech publishes the Nuclear Market Review each Friday evening, which reports the weekly uranium spot market price, uranium trading activity, industry news, and market data. TradeTech also publishes The Nuclear Review, a monthly trade publication dedicated to the international uranium and nuclear energy industry.

TradeTech, and its predecessor companies-NUEXCO Information Services, CONCORD Information Services, and CONCORD Trading Company-has supported the uranium and nuclear fuel cycle industry for 40 years, and is widely recognized for its expertise in trading activities and its comprehensive knowledge of the technical, economic and political factors affecting this industry. TradeTech provides expert market consulting, participates in the buying and selling of uranium products and services, and maintains an extensive information database on these industries.

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E-mail: info @ tradetech.com

http://www.uranium.info

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