Agreement Suspending the Antidumping Investigation on Uranium from Kazakhstan and Kyrgyzstan

DEPARTMENT OF COMMERCE

International Trade Administration

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

Agreement Suspending the Antidumping Investigation on Uranium

from Kazakhstan and Kyrgyzstan

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

Department of Commerce.

ACTION: Notice of Price Determination on Uranium from Kazakhstan and

Kyrgyzstan.

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SUMMARY: Pursuant to Section IV.C.1. of the agreements suspending the

antidumping investigation on uranium from Kazakhstan and Kyrgyzstan, as

amended, (antidumping suspension agreement on uranium from Kazakhstan

and Kyrgyzstan), the Department of Commerce (the Department) calculated

a price for uranium of $11.76/pound of U3O8 for

the relevant period, as appropriate.1 Under Section IV.A,

exports from Kazakhstan to the U.S. are subject to quotas determined

based on price levels as outlined in Appendix A. On the basis of this

price and Appendix A of the suspension agreement with Kazakhstan, there

is no quota for uranium from Kazakhstan for the period April 1, 1998,

through September 30, 1998.

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\1\ Section IV.A. of the agreement with Uzbekistan calls for a

quota allocation that is tied to U.S. Production of

U3O8. Pursuant to such provision, the quota

for the current relevant period for Uzbekistan, October 13, 1997-

October 12, 1998, has been announced separately in the letter,

Production-Based Quota Methodology for Uzbekistan, dated October 10,

1997 in accordance with Section IV.A of that agreement.

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EFFECTIVE DATE: April 1, 1998.

FOR FURTHER INFORMATION CONTACT: Letitia Kress or Jim Doyle, Office of

Antidumping Countervailing Duty Enforcement--Group III, Import

Administration, International Trade Administration, U.S. Department of

Commerce, 14th Street & Constitution Ave., NW, Washington, DC 20230;

telephone: (202) 482-6412 or (202) 482-0159, respectively.

Price Calculation

Background

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

from Kazakhstan and Kyrgyzstan specifies that the Department will issue

its determined market price on April 1, 1997, and use it to determine

the quota applicable to imports from Kazakhstan during the period April

1, 1998, to September 30, 1998. Consistent with the February 22, 1993

letter of

[[Page 16974]]

interpretation, the Department provided interested parties with the

preliminary price determination on March 20, 1998.

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 calculated a simple average utilizing 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 calculated a simple average utilizing the weighted-average

long-term price as determined by the Department (see explanation below)

on the basis of information provided by market participants (market

study) and a simple average of the UPIS U.S. Base Price for the months

in which there were new contracts reported.

With regard to the market study, 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 market study's proprietary summary sheets, the Department

calculated the present value of the prices reported for any future

deliveries assuming an annual inflation rate of 2.30 percent. The

inflation rate was derived from a rolling average of the annual Gross

Domestic Product Implicit Price Deflator index from the past four

years. The Department then calculated weight-averaged annual price

factors according to the specified nominal delivery volumes for each

delivery year. These factors are summed to arrive at the long-term

price by reported contract. These contract prices are then weight-

averaged together to determine one overall long-term contract price for

the market study component. The Department then calculated a simple

average of the market study long-term contract price UPIS U.S. Base

Price.

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 calculated spot and

long-term components of the observed price. In this instance, we have

used purchase data from the period 1993-1996. During this period, the

spot market accounted for 79.31 percent of total purchases, and the

long-term market for 20.69 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 1993

through 1996. The EIA has withheld certain business proprietary

contract data from the public versions of the Uranium Industry Annual

1993, Uranium Industry Annual 1994, Uranium Industry Annual 1995 and

the Uranium Industry Annual 1996 (the most recent edition). The EIA,

however, provided all business proprietary data to the Department and

the Department has used it to update its weighting calculation.

Calculation Announcement

The Department determined, using the methodology and information

described above, that the observed market price is $11.76. This

reflects an average spot market price of $11.84, weighted at 79.31

percent, and an average long-term contract price of $12.29, weighted at

20.69 percent. Since this price is below $12.00-$13.99 as defined in

Appendix A of the suspension agreement with Kazakhstan, Kazakhstan does

not receive an Appendix A quota for the period April 1, 1998, to

September 30, 1998.

Comments

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

the Department provided interested parties the preliminary price

determination for this period on March 20, 1998. No interested party

submitted comments.

Dated: April 1, 1998.

Joseph A. Spetrini,

Deputy Assistant Secretary for Antidumping Countervailing Duty--Group

III.

[FR Doc. 98-9093 Filed 4-6-98; 8:45 am]

BILLING CODE 3510-DS-P