It is not always easy to push a big order through an actively traded, exchange-listed market without having a sway on the price in that market. It is almost impossible in a non-exchange market which relies on asking for interest from the market itself.
Two weeks ago an institutional buyer was contemplate the purchase of one million pounds of U3O8 at spot, I imagine as an approximate trade, and hence disclosed its notice to the usual suspect. Word spread, and future sellers all backed off. The spot uranium price then bounced up as other buyers chased trades.
The irony is that not only did the price become too steep for the organization; its own share price fell as well. Hence, reports industry advisor Trade Tech, no deal.
Once again the floor was pulled out from under the spot market, and prices have responded accordingly. Some 800,000lbs of U3O8 equivalent did change hands in several dealings over the course of last week, but prices trended lower with each trade now that the seller are on the hop once more. TradeTech’s weekly spot price needle has fallen US75c to US$35.00/lb.
These fluctuations in the spot price are having their result on the term market. A number of utilities are looking to enter the term market for supply contracts, Trade Tech reports, but none appears in a huge hurry while price actions are unclear. No term transactions were report last week.
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