Uranium Prices Fall Again

The spot price for uranium has fallen for the second consecutive week, marking the first time this has happened since May 2001. TradeTech’s indicator dipped US$2 to US$133 per pound.

“The spot uranium price continued to show signs of weakness as more sellers entered the market this week,” TradeTech said in its Nuclear Market Review for the week ending July 6.

With sellers apparently willing to sell below published prices to attract buyers, weaker demand is demonstrating how sensitive prices can be.

But it only takes one market surprise like the flooding of Cameco Corp.’s (CCJ) Cigar Lake mine last October to bring buyers back into the spot uranium market, notes Stock Interview.com. It points to territory conflicts in the Republic of Niger as the next source of a potential uranium squeeze.

Tuareg rebels recently captured a Chinese uranium executive and have been attacking mining interests in Niger since February. The country has the fourth largest uranium mining industry in the world.

CCJ 1-yr chart: