Uranium Spot Price Posts Further Decline
Ux Consulting reports spot uranium prices down $3USD to $65USD per pound.
TradeTech reports a decline of $4USD to $64USD.
Uranium Hits 16 Month Low
TradeTech reports that Uranium oxide for immediate delivery fell to $69 a pound, down $2 from the previous week.
``Although recent transactions have absorbed a significant quantity of supply from the spot market, additional supply continues to emerge,'' TradeTech said.
Uranium Sector Moves Higher Amid Takeover Rumors
Cameco and Uranium One are seeing increased buying interest following a signal that China Nuclear Corp. is seeking acquisitions and partnerships with Canadian uranium producers.
``It's definitely a bullish development for the uranium space,''....... ``It signals China entering the nuclear space and the uranium space in a big way.''.....analyst Max Layton quoted in Bloomberg.
Ux Consulting reports that spot uranium prices declined $2.00 U.S. per lb last week to $71.00 USD.
Uranium oxide inventories continue to build due to reduced processing capabilities. Cameco's (NYSE CCJ) processing plant remains offline and is not expected to resume production until the fourth quarter of 2008. Cameco's facility processes approximately thirty percent of the world's uranium oxide.
Shares of Usec (NYSE USU) rocketed up more than 27% on Thursday.
"We are not hearing any rumors or news responsible for the bullish activity. But obviously people are betting that USEC shares might be running to fill the gap left on the charts created when they warned on Feb. 26 that their outlook would not match street estimates," said Jon Najarian, a founder of Web information site optionmonster.com in Chicago.
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