Disconnect In Uranium

FNArena reported on uranium spot price.

As quoted in the market news:

The two forms are not completely interchangeable for users despite both being, in effect, “uranium”. Thus occasionally we will will see a price disconnect between forms. Moreover, there is also a price consideration related to point of delivery which can again imply price discrepancies.

Industry consultant TradeTech notes that last week saw UF6 offered at the US Energy Commission for prices below that of uranium material offered elsewhere. Not everyone wants UF6 nor wants to go to USEC to get it, so a price disconnect appeared. This meant that the spot uranium market, based on U3O8 or equivalent, was quiet last week, the consultant notes. One assumes traders are preferring to let the overhang clear before pitching new prices.

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