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[Federal Register Volume 62, Number 69 (Thursday, April 10, 1997)]
[Notices]
[Pages 17589-17590]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-9259]

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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
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