Denver, CO (PRWEB) January 7, 2009
A trend that led to record uranium prices in 2007 was reversed in 2008, as the global financial crisis spilled over into the uranium market and caused the uranium spot price to tumble more than 40 percent.
TradeTech's uranium spot price peaked early in the year at US$89 per pound uranium oxide (U3O8) on January 4, 2008. By mid-October, the price sagged to a low of $45 as near-term demand weakened. Production setbacks brought some uranium producers to the spot market as buyers and the price rebounded slightly in November before settling at $52 as the year came to a close.
The decline in the uranium spot price during 2008 was due largely to the presence of sellers driven by cash requirements, as well as a major sell-off by hedge funds and investors prompted by the recent economic downturn and credit crisis. "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.
Weak utility demand and the desire of some sellers to generate cash before year-end all combined to keep spot uranium prices soft. "Buyers are expected to return to the market during the first quarter of 2009 as new budgets take effect and buying from India and China increases; however, it could take several weeks for the market to regain momentum," 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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