As discussed in my article in the April 2004 edition of NEI, the world uranium market has suddenly become much more interesting. Indeed, spot market prices have continued to rise, albeit more slowly, throughout 2004 and are now standing at over USD18 per pound, compared with USD 11 per pound in the middle of 2003. In terms of the currencies of most producing nations, the increase has been less sharp, given the appreciation of their currencies against the US dollar, but the rise is notable and has been sustained. The supply disruptions noted during 2003, such as the flood at the McArthur River mine and the problems at the Metropolis conversion works, clearly had some impact but time has shown that more fundamental reasons lay behind the price increase, notably the revised, longer-term strategy the Russian sellers are now adopting.
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