Around this time last year, optimists were anticipating that the spot uranium price would march on to US$200 per pound.
But that bullish run seems to be over as prices fall, sparking speculation that they are likely to plunge further in the face of waning buyers' interest and a looming oversupply of the metal.
In late June last year, uranium spot prices hit the highs at US$136 per pound, from a low of US$7/lb in 2000, bolstered by a tight market and speculative buying. Currently, the prices are down by slightly over 37% from June 2007 spot prices, sending quivers throughout the markets.
Last week alone, uranium dropped 5.6% to US$84 as sellers cut prices to generate business after trading volumes in 2007 fell to their lowest in a decade, according to a Bloomberg report Tuesday. During the week, supplies on the spot market more than twice exceeded demand, with two sales totaling 200,000 pounds of yellow cake concluded.
But that bullish run seems to be over as prices fall, sparking speculation that they are likely to plunge further in the face of waning buyers' interest and a looming oversupply of the metal.
In late June last year, uranium spot prices hit the highs at US$136 per pound, from a low of US$7/lb in 2000, bolstered by a tight market and speculative buying. Currently, the prices are down by slightly over 37% from June 2007 spot prices, sending quivers throughout the markets.
Last week alone, uranium dropped 5.6% to US$84 as sellers cut prices to generate business after trading volumes in 2007 fell to their lowest in a decade, according to a Bloomberg report Tuesday. During the week, supplies on the spot market more than twice exceeded demand, with two sales totaling 200,000 pounds of yellow cake concluded.
