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

DEPARTMENT OF COMMERCE

International Trade Administration

[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, Kyrgyzstan, and Uzbekistan, the

Department of Commerce (the Department) calculated a price for uranium

of $15.34/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 700,000 lbs. for the period April 1, 1997, through

September 30, 1997. The export quota for uranium pursuant to Section

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

940,000 lbs. for the period October 13, 1996, through October 12, 1997.

Exports pursuant to other provisions of these agreements are not

affected by this price.

EFFECTIVE DATE: April 1, 1997.

FOR FURTHER INFORMATION CONTACT: Alexander Braier or Cindy Sonmez,

Office of Agreements Compliance, Import Administration, International

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

Constitution Ave., NW, Washington, DC 20230; telephone: (202) 482-3818

or (202) 482-0961, respectively.

PRICE CALCULATION:

Background

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

from Kazakstan, Kyrgyzstan, and Uzbekistan specifies that the

Department will issue its observed market price on April 1, 1997, and

use it to determine the quota applicable to exports from Kazakstan and

Kyrgyzstan during the period April 1, 1997, to September 30, 1997 and

from Uzbekistan during the period of October 13, 1996 to October 12,

1997. Consistent with the February 22, 1993, letter of interpretation,

the Department provided interested parties with the preliminary price

determination on March 12, 1997.

Calculation Summary

Section IV.C.1. of these agreements 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. The Department's 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 2.34 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

[[Page 17590]]

contracts submitted by market participants. The Department then

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

term price as 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. We have continued to use data which

reflects the period from 1992-1995, as no more recent data is

available. During this period, the spot market accounted for 73.74

percent of total purchases, and the long-term market for 26.26 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 continued to use data which reflects the period 1992

through 1995. The EIA has withheld certain contracting data from the

public versions of the Uranium Industry Annual 1993, Uranium Industry

Annual 1994, and the Uranium Industry Annual 1995 (the most recent

edition) because this data was business proprietary. The EIA, however,

provided this data to the Department and the Department has used it 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 $15.34. This

reflects an average spot market price of $14.97, weighted at 73.74

percent, and an average long-term contract price of $16.38, weighted at

26.26 percent. The decrease in the observed market price from our

preliminary determination reflects the correction of clerical errors,

as discussed below, and our inclusion in the calculation of one other

contract that was received after our preliminary price calculation.

Since this price is between $15.00/lb and $15.99/lb expressed in

Appendix A of the suspension agreement with Kazakstan, as amended,

Kazakstan receives a quota of 700,000 lbs for the period April 1, 1997,

to September 30, 1997. The suspension agreement with Uzbekistan, as

amended, specifies that Uzbekistan shall have access to its Appendix A

quota of 940,000 lbs for the period of October 13, 1996 to October 12,

1997, provided that the calculated price is at or above $12.00 per

pound.

Comments

Consistent with the February 22, 1993, letter of interpretation,

the Department provided interested parties the preliminary price

determination for this period on March 12, 1997. One interested party

submitted comments.

UPIS Index Used

Comment 1: The Ad Hoc Committee of Domestic Uranium Producers (the

producers) request that the Department correct a minor data error in

its spot price segment of the calculation. According to the producers,

the Department inadvertently used the UPIS Short-Term Price Indicator

data rather than the UPIS Spot Price Indicator data, which is

consistent with previous calculations.

Department's Position: The Department agrees with the producers and

has corrected the data error.

Long-Term UPIS Indicators

Comment 2: The producers claimed that the Department erred in its

calculation of the simple average of the long-term UPIS indicators.

Department's Position: The Department agrees with the producers and

has corrected the clerical error in question.

Long-Term Contract

Comment 3: The producers request that the Department carefully

review its calculation of the price for contract #2 because the

reported price is higher than prices seen in the UPIS indicator and

other similar transactions. The producers request the Department to

review the terms of the contract to determine whether the contract is a

renegotiated contract, whether the transaction was part of or related

to another transaction which was not reported, and whether the reported

contract is between related parties. The Department was also asked to

verify whether an appropriate deflator has been used in reporting

prices with respect to this particular transaction.

Department's Position: In response to the producers' comments, the

Department contacted the respondent and confirmed that the survey

response contained accurate information, that the contract in question

was not a renegotiated contract, was not part of or related to another

transaction, did not involve related parties, and that an industry

standard deflater was used. Therefore, the Department continues to use

price-related information regarding contract #2 in its long-term price

determination.

Finally, the Department corrected a clerical error regarding a

delivery year in its calculation of the long-term price for contract

#3. The Department notes that its response to the producer's third

comment applies to this contract as well.

After the analysis of the above comments, the Department has

determined that the observed market price for uranium, effective April

1, 1997, is $15.34/lb.

Dated: April 1, 1997.

Joseph A. Spetrini,

Deputy Assistant Secretary for Antidumping Countervailing Duty--Group

III.

[FR Doc. 97-9259 Filed 4-9-97; 8:45 am]

BILLING CODE 3510-DS-P