[Federal Register Volume 59, Number 196 (Wednesday, October 12, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-25081]


[[Page Unknown]]

[Federal Register: October 12, 1994]


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DEPARTMENT OF COMMERCE
[A-100-002]

 

Notice of Price Determination; Uranium from Kazakhstan, 
Kyrgyzstan, and Uzbekistan

AGENCY: International Trade Administration, Import Administration, 
Commerce.

ACTION: Notice.

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SUMMARY: Pursuant to section IV.C.1. of the antidumping suspension 
agreements on uranium from Kazakhstan, Kyrgyzstan, and Uzbekistan, the 
Department calculated an observed market price for uranium of $11.13/
lb. On the basis of this price, the export quota for uranium pursuant 
to Section IV.A. of each of the agreements is zero. Exports pursuant to 
other provisions of the agreements are not affected by this price.

EFFECTIVE DATE: October 1, 1994.

FOR FURTHER INFORMATION CONTACT: Melissa Skinner, Beth Chalecki, 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) 
482-0159, (202) 482-2312, or (202) 482-2243 respectively.

PRICE CALCULATION:

Background

    Section IV.C.1. of each agreement specifies that the Department 
will issue the DOC observed market price on October 1, 1994, and use it 
to determine the quota applicable to imports from the various republics 
during the period October 1, 1994 to March 31, 1995.

Calculation Summary

    Section IV.C.1. of each 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 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 2.78 percent, which was derived from a rolling 
average of the annual GNP 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 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 1989-1992, as in the previous 
determination. During this period, the spot market accounted for 31.39 
percent of total purchases, and the long-term market for 68.61 percent. 
We were not able to include data from the 1993 EIA Uranium Industry 
Annual because it has been withheld due to its proprietary nature.

Calculation Announcement

    The Department determined, using the methodology and information 
described above, that the observed market price is $11.13. This 
reflects an average spot market price of $9.33, weighted at 31.39 
percent, and an average long-term contract price of $11.95, weighted at 
68.61 percent. Since this price is below the $13.00/lb. minimum 
expressed in Appendix A of the agreements, there will be no quota under 
Section IV.A. of the agreements available to any signatory republic for 
the period October 1, 1994 to March 31, 1995.

Comments

    Consistent with the Department's letters of interpretation dated 
February 22, 1993, we provided interested parties our preliminary price 
determination on September 12, 1994. We received no comments.
    Allowing for additional information received since September 12, we 
have determined that the observed market price for uranium is $11.13/
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 by March 5, 1995.

    Dated: October 4, 1994.
Paul L. Joffe,
Deputy Assistant Secretary for Import Administration.
[FR Doc. 94-25081 Filed 10-11-94; 8:45 am]
BILLING CODE 3510-DS-P