Uranium oxide prices are continuing their seemingly inexorable, record-breaking climb.
Based on recent auction bids, the spot price of the key component of nuclear fuel climbed to yet another new high of $138 (U.S.) a pound as of June 1, up $5 from the day before, according to TradeTech, of Denver, Co., one of two U.S. firms that track sales of the fissile metal.
The other firm, Ux Consulting Co. LLC of Roswell, Ga., said the spot price rose to $135 a pound in the week ended Monday, up $10 from the preceding week.
Ux Consulting and the New York Mercantile Exchange recently launched the first public market for uranium oxide, although all contracts are settled in cash, rather than by delivery of the metal. The price of the June contract was $137 a pound at Monday's close, down $3.
The spot price of the fissionable metal has nearly doubled so far this year and shot up by more than 500 per cent since 2003, as demand continues to outstrip supply and delays continue to plague several massive new planned mines.
Already some industry analysts and participants are forecasting prices could soar to as high as $250 a pound by the end of next year.
The performance has triggered a rush of exploration for new sources, as well as some consolidation among existing players. Just Monday, for example, aggressive sxr Uranium One Inc. of Toronto unveiled its latest planned acquisition, with a $1.75-billion, all-stock offer for Energy Metals Corp. of Vancouver.
Nuclear power plant operators buy most of their uranium oxide supplies under long-term contracts that are generally priced at only about one-third of the spot market price.
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