[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
