Saturday, March 22, 2008 at 03:28AM
Another sign of the growing interest in this tiny market sector is the slow, but sure growth of the interest in various vehicles for trading uranium. We have witnessed the birth of the futures market for uranium over at NYMEX and now we another possibility on the cards.
According to David Stellfox, of platts.com who wrote: 'According to industry sources, global mining giant BHP Billiton is one of the companies that have approached the LME about setting up a contract. One major issue yet to be addressed is where the product would be stored.' An interesting point given that the possibility of storing uranium anywhere in the UK will become the target of the various environmental groups who are still opposed to nuclear power. The article goes on to say that;
“They believe an LME contract would help jump-start the moribund uranium spot market, but add that if a uranium market is to develop as have other commodity markets, there will need to be a level playing field for all participants.”
A jump start for the spot market! Well, every little bit helps, and why not? But as we have said many times before it is the long term contract price that is important and not so much the spot price. However, we do tend to watch the spot price more avidly.
It also offers an alternative to having to use the conversion facilities for storage, who by their strategic position in this process do have an advantage in terms of knowledgeof the market.
Lets hope that they go for it.
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