From the Dundee morning notes Monday March 21, 2011
URANIUM NOTES:
IMPACT FROM FUKUSHIMA DAIICHI NUCLEAR CRISIS - SPOT PRICE HITS A LOW AND RECOVERS...
Spot price: US$53.00 (down US$14.75)
Term price: US$70.00 (as of Feb. 28th, 2011)
¡¤Sellers anxious about the impact of the crisis offering deep discounts to complete sales early in the week.
¡¤By Friday, spot price recovered by US$3.00 from Thursday's low of US$50.00/lb
¡¤Buyers were primarily utilities and uranium producers; sellers were traders and financial entities.
¡¤Total of 21 transactions worth 3.6MM lbs of U3O8 changed hands this week.
¡¤These transactions removed the most aggressively priced supply and by end of the week, there was insufficient low-priced supply to meet unanticipated demand.
¡¤News of a transmission line being successfully connected to some of the Fukushima reactors rekindled hopes and spot prices began to recover.
¡¤Uncertainty and resulting price volatility are inevitable for a period of time.
Source: TradeTech's Nuclear Market Review - March 18, 2011
