The spot price of uranium underwent its first increase in three years in May when the range for bids and offers stood at US$8.90-9.35 per lb. U/c3h/O/c8h/, NUKEM reports. The company, which provides nuclear fuel market consulting and information services, attributes the rise in price to falling supplies and higher demand. Activity in the natural uranium spot market during the first four months of this year was up by 30% compared with the same period in 1989, says the company in explaining the drain on supplies.
Demand came from European and American buyers. Some producers are buying rather than mining their own deposits to meet commitments because the current price is below most production costs, NUKEM says. Utilities have been buying to meet their requirements or to take advantage of the price.
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