[Federal Register Volume 61, Number 68 (Monday, April 8, 1996)]
[Notices]
[Pages 15468-15469]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-8509]
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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