Uranium Prices Came down & slipped below $50

The uranium spot price fell down last week by, dropping below the $50 mark for the first time in a year as sellers gave in to lower bids.The TradeTech is reported a spot price of $49.50 per pound that reduced 25 cents from the previous week and also several utilities are evaluating ‘buy and hold’ strategies stepping into the market to take advantage of the recent drop in price and they are going to hold the material in inventory until the material is actually needed.

          And the consulting firm also said that the transaction activity in the spot market remains very weak with the transaction volume less than 500,000 pounds of U308 over the past two months.Japan’s total nuclear power plant utilization, was zero in June, an average of 2.9 percent for July following the restart of two nuclear reactors at Kansai Electric Power’s Ohi plant. Last year’s run rate for July was an average of  33.9% only.

          Comes to the positive thing the RedBook report, published jointly by the Organisation for Economic Cooperation and Development Nuclear Energy Agency and the International Atomic Energy Agency, forecasts that uranium demand will rise “for the foreseeable future.” While the report’s writers concede that the current global defined resource base is enough to meet demand, “timely investment” in production facilities is needed.