Uranium Declines 1%, First Drop This Year, UxC Says
(Corrects the percentage change in headline and second paragraph.)
Uranium prices, which gained 17 percent in January, fell for the first time this year as traders sold to secure profits from the nuclear fuel, according to Ux Consulting Co.
Uranium-oxide concentrate for immediate delivery traded at $72.25 a pound in the seven days ended yesterday, down 1 percent from the week before, UxC said in an e-mailed report today, based on the most competitive offer tracked by the Roswell, Georgia-based company. That compares with $73 on Feb. 8 and $62.50 at the beginning of the year, according to UxC.
“Attitudes shifted over the past week, and several participants shared the view that the top had been taken off the market, at least for the near term,” UxC said in the report. “A few sellers appear to view the current price level as an opportunity to lock in previous gains.”
More than 150 new reactors are planned worldwide by 2030, with China planning 110 units, according to data compiled by the World Nuclear Association. Uranium prices, which reached a high of $136 a pound in 2007 before falling to about $40, have risen since mid-2010 as China increased the use of nuclear power to curb emissions from burning coal.
There have been “numerous reports” of Chinese traders seeking to sell uranium on the spot market in the past week, UxC said.
“Over the past several months, each time the spot price showed signs of flattening or a downward turn, renewed demand interest reversed the price movement,” UxC said. “It will be interesting to see how the market reacts to this most recent downturn in price.”
To contact the reporter on this story: Jason Scott in Perth at Jscott14@bloomberg.net
To contact the editor responsible for this story: Clyde Russell at crussell7@bloomberg.net
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