[Federal Register Volume 63, Number 66 (Tuesday, April 7, 1998)]
[Notices]
[Pages 16973-16974]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-9093]
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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
