According to TradeTech, jumped US$5.50 to US$57.50/lb.
TradeTech reports the level of spot demand is “exceptionally high”, albeit “predominately discretionary”, meaning investors and speculators are now back in earnest. Real end-users were more inclined to sit back and reassess last week.
Perhaps the hedge funds are beginning to re-enter. Most will remember that in 2006, hedge funds pushed the uranium spot price to US$138/lb followed by a “true” bust.
However despite TradeTech’s observation of the upswing being based on discretionary buying there has been a marked number of articles outlining the future needs of the uranium power plants that are now being either built of planned. Further China appears to be making sure that it doesn’t get caught short with a stockpile build up. That plus the missiles to megaton project coming to an end in 2012 (Russia) 2013 USA seems to be part of the drivers. Certainly we have seen an uplift in the Uranium share indexes both Australian and Global over the last few weeks.
Some of the high gainers include EXT, GGG, AEE and PDN. Each of these have extraordinary drivers: With EXT bringing the world’s second largest mine into production in 2013, GGG having a lovely mix of uranium coupled with the world’s largest Rare Earth Elements deposit, AEE on track towards proving up a billion pounds of uranium with a minuscule market cap and PDN after doubling its reserves and being the first into new production.