Agreement Suspending the Antidumping Investigation on Uranium From Kazakstan, Kyrgyzstan and Uzbekistan

DEPARTMENT OF COMMERCE

[A-834-802, A-835-802, A-844-802]

Agreement Suspending the Antidumping Investigation on Uranium

From Kazakstan, Kyrgyzstan and Uzbekistan

AGENCY: Import Administration, International Trade Administration, U.S.

Department of Commerce.

ACTION: Notice of price determination on uranium from Kazakstan,

Kyrgyzstan and Uzbekistan.

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SUMMARY: Pursuant to Section IV.C.1. of the antidumping suspension

agreement on uranium from Kazakstan, the Department of Commerce (the

Department) calculated a price for uranium of $12.25/lb. On the basis

of this price, the export quota for uranium pursuant to Section IV.A.

of the Kazakstani agreement, as amended on March 27, 1995, is 500,000

lbs. for the period April 1, 1996, through September 30, 1996. Exports

pursuant to other provisions of the Kazakstani agreement are not

affected by this price. The export quota for uranium pursuant to

Section IV.A. of the Uzbek agreement, as amended on October 13, 1995,

was determined by the last price determination (60 FR 52368), so this

notice does not affect them. The Kyrgyz have no Appendix A quota, so

this notice does not affect them.

EFFECTIVE DATE: April 1, 1996.

FOR FURTHER INFORMATION CONTACT: Alexander Braier or Yury Beyzarov,

Office of Agreements Compliance, Import Administration, International

Trade Administration, U.S. Department of Commerce, 14th Street &

Constitution Ave., NW, Washington, DC 20230; telephone: (202) 482-1324

or (202) 482-2243, respectively.

Price Calculation

Background

Section IV.C.1. of the antidumping suspension agreement on uranium

from Kazakstan specifies that the Department will issue its observed

market price on April 1, 1996, and use it to determine the quota

applicable to exports from Kazakstan during the period April 1, 1996,

to September 30, 1996. Consistent with the Department's letter of

interpretation dated February 22, 1993, we provided interested parties

with our preliminary price determination on March 15, 1996.

Calculation Summary

Section IV.C.1. of the Kazakstani agreement specifies how the

components of the market price are reached. In order to determine the

spot market price, the Department utilized the monthly average of the

Uranium Price Information System Spot Price Indicator (UPIS SPI) and

the weekly average of the Uranium Exchange Spot Price (Ux Spot). In

order to determine the long-term market price, the Department utilized

the weighted-average long-term price as determined by the Department on

the basis of information provided by market participants and a simple

average of the UPIS U.S. Base Price for the months in which there were

new contracts reported. Our letters to market participants provided a

contract summary sheet and directions requesting the submitter to

report his/her best estimate of the future price of merchandise to be

delivered in accordance with the contract delivery schedules (in U.S.

dollars per pound U3O8 equivalent). Using the information

reported in the proprietary summary sheets, the Department calculated

the present value of the prices reported for any future deliveries

assuming an annual inflation rate of 2.52 percent, which was derived

from a rolling average of the annual GDP Implicit Price Deflator index

from the past four years. The Department used the base quantities

reported on the summary sheet for the purpose of weight-averaging the

prices of the long-term contracts submitted by market participants. We

then calculated a simple average of the UPIS U.S. Base Price and the

long-term price determined by the Department.

Weighting

The Department used the average spot and long-term volumes of U.S.

utility and domestic supplier purchases, as reported by the Energy

Information Administration (EIA), to weight the spot and long-term

components of the observed price. In this instance, we have used

purchase data from the period 1991-1994. During this period, the spot

market accounted for 73.10 percent of total purchases, and the long-

term market for 26.90 percent.

As in previous determinations, the Department used the Energy

Information Administration's (EIA) Uranium Industry Annual to determine

the available average spot- and long-term volumes of U.S. utility

purchases. We have updated the data to reflect the period 1991 through

1994. The EIA has withheld certain contracting data from the public

versions of the Uranium Industry Annual 1993 and the Uranium Industry

Annual 1994 because this data was business proprietary. The Department

has used this data to update its weighting calculation. Accordingly, it

may only be released under Administrative Protective Order.

Calculation Announcement

The Department determined, using the methodology and information

described above, that the observed market price is $12.25. This

reflects an average spot market price of $12.46, weighted at 73.10

percent, and an average long-term contract price of $11.67, weighted at

26.90 percent. Since this price is above the $12.00/lb. minimum

expressed in Appendix A of the amended Kazakstani agreement, Kazakstan

receives a quota of 500,000 lbs. for the period April 1, 1996, to

September 30, 1996.

Comment

Consistent with the Department's letter of interpretation dated

February 22, 1993, we provided interested parties our preliminary price

determination on March 15, 1996. We received a comment from interested

parties stating that the

[[Page 15469]]

Department should use the UPIS ``U.S. Base Price Indicator'' as one of

the indicating variables for the long term price as opposed to the UPIS

``Base Price Indicator,'' because the former represents U.S. utility

purchases, while the latter represents purchases worldwide. As a result

of the comment, we have used the UPIS ``U.S. Base Price Indicator'' in

our calculation.

After analysis of the above comment, we have determined that the

observed market price for uranium is $12.25/lb. The Department invites

parties to provide pricing information for use in the next price

determination. Any such information should be provided for the record

and should be submitted to the Department by September 5, 1996.

Dated: April 1, 1996.

Joseph A. Spetrini,

Deputy Assistant Secretary for Compliance.

[FR Doc. 96-8509 Filed 4-5-96; 8:45 am]

BILLING CODE 3510-DS-P