The daily spot price of uranium was $36/lb Monday, up 50 cents since October 21, as "buyers showed renewed interest" in acquiring material, according to price publisher TradeTech.
The daily spot price, which was unchanged at $35.50/lb from October 9 to October 20, rose 25 cents October 21 and by another 25 cents to $36/lb on Friday, TradeTech said in its weekly report on Friday. Its daily spot price remained unchanged on Monday.
Overall, "five transactions involving approximately 500,000 pounds U3O8" equivalent were concluded for the week ended Friday, TradeTech said. Utilities, traders and financial entities "all concluded purchases" for the week ending Friday, it said, "with traders selling the bulk of the material."
"This certainly can affect the spot market" price, a market source said in an interview Friday, adding that "some sellers need to acquire spot [market] material to fulfill their contacts for long-term deliveries."
Market sources said the daily spot price increase also was due in part to a number of utilities coming into the market to meet their U3O8 needs in 2017 and 2018.
A second market source said Friday that the U3O8 spot market is being buoyed by activities by Uranium Participation, a Toronto-based firm that "invests substantially all of its assets" in the purchase of U3O8 and UF6, according to a post on its website. The company, known as UPC, said in an October 3 statement that it was seeking to sell shares to raise as much as $200 million.
"There's a realization that there will be a potential increase in demand on a consistent basis. UPC, unlike the past, likely will buy material fairly regularly," the source said.
Price publisher Ux Consulting, which publishes a weekly U3O8 price, reported it at $36.50/lb Monday, up by 85 cents from October 20.
The Ux daily Broker Average Price -- based on information from Evolution Markets and Numerco -- was $36.50/lb Monday, up 37 cents from Friday. Ux reported the BAP bid-offer spread at $36.25-36.75/lb Monday, with the bid up by 25 cents and offer up by 50 cents from Friday.
The Platts NuclearFuel range for the week is $35.50/lb-$36.75/lb.
