1983S3715 — EN — 02.03.1984 — 001.001 — 1
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►B COMMISSIONDECISIONNo3715/83/ECSC
of23December 1983
fixingminimumpricesforcertainsteel products
(OJ L 373, 31.12.1983, p. 1)
Amended by:
Official Journal
No page date
►M1CommissionDecisionNo 559/84/ECSC of 29 February 1984 L 61 23 2.3.1984
▼B
COMMISSIONDECISIONNo3715/83/ECSC
of23December 1983
fixingminimumprices forcertainsteel products
THE COMMISSION OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Coal and Steel
Community, and in particular Articles 47, 61 and 64 thereof,
On the basis of studies made jointly with undertakings and associations
of undertakings and after consulting the Consultative Committee andthe Council as to the advisability of fixing minimum prices for certainsteel products and as to the level of these prices,
Whereas:The steel industry in the Community is beset by serious difficulties
despite the fixing of production quotas for certain products.
In view of the scale of the difficulties facing the steel industry, the
Commission has recognized the existence of a manifest crisis.
Particularly where flat products, sections and beams are concerned,
prices have slumped despite the actiontakeninrespect of quan tities.
The restructuring of the steel sector throughout the Community can be
carried through only if undertakings have a stable income.
The financial situation of most undertakings remains precarious. The
prices charged for certain steel products are no longer in line with theguidance prices published by the Commission and, consequently, it isnecessary to place a limit on the rebates granted. The introduction of
minimum prices for flat products, sections and beams should improve
the situation of the producers concerned.
Such a measure is anin tegral part of the other crisis measures takenby
the Commission, in particular with regard to quantities. It should there-fore be temporary.
It is appropriate that the minimum prices should be basis prices ex
basing-point so as to maintain a degree of flexibility in the market.However, it is appropriate to prevent the application of minimumprices being circumvented by an increase in rebates or a reduction insurcharges published inthe price lists.
In order to maintain a uniform level of minimum prices within the
Community, the Commission should, where appropriate, adjust the
minimum prices in the light of variations in exchange rates.
In order to ensure that the system of minimum prices is successful, it is
necessary that it should be applied as widely as possible to the above-mentioned products. It is therefore essential that it should apply in
principle to long-term contracts as well,
The special situation of certain users who concluded long-term
contracts before the introduction of minimum prices justifies deroga-tions if firm-price contracts or contracts containing industrialcooperationclauses are in volved.
Prices of ship plate delivered to Community shipyards are determined
by the situationonthe world market an d such plate is used for the
purpose of building seagoing vessels and other structures in respect ofwhich special tariff provisions provide for the suspension of customsduties.
Independent producers of welded pipes in the Community compete
with certain steel undertakings which also produce welded pipes, and
the products used for the productionof welded pipes are n ot coveredby the pricing rules. The prices of welded pipes are, in addition, to alarge extent determined by imports from non-member countries. It istherefore justified not to subject products used for the production ofwelded pipes to the minimum prices.1983S3715 — EN — 02.03.1984 — 001.001 — 2
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In the case of substandard products, quantities and rebates should be
limited so as to ensure that the prices charged for these products donot fall to a level which would give rise to serious disturbances.
Alignments on offers from non-member countries in respect of which
the Commission has not published a ban on alignment must not havethe effect that the resulting base prices ex basing-point are below theminimum prices,
HAS ADOPTED THIS DECISION:
Article 1
1. The Commissionhereby fixes for the followin g products:
(a) hot-rolled wide strip (coils),
(b) hot-rolled narrow strip,
(c) narrow strip obtained by slitting hot-rolled wide strip,
(d) hot-rolled sheet obtained by cutting hot-rolled wide strip,
(e) reversing mill plate,
(f) cold-rolled sheet,
(g) heavy sections and beams,
minimum prices equivalent to the guidance prices published for each of
these products inthe Commissioncommun icationof 29 April 1983(1),
less a maximum temporary rebate of:
►M144◄ECU per tonne in the case of hot-rolled wide strip
(coils),
22 ECU per tonne in the case of hot-rolled narrow strip,
►M140◄ECU per tonne in the case of narrow strip obtained by
slitting hot-rolled wide strip,
►M140◄ECU per tonne in the case of hot-rolled sheet obtained by
cutting hot-rolled wide strip,
►M157◄ECU per tonne in the case of reversing mill plate,
►M126◄ECU per tonne in the case of cold-rolled sheet,
►M126◄ECU per tonne in the case of sections and beams in cate-
gory 1,
13 ECU per tonne in the case of sections and beams in category 2a,
24 ECU per tonne in the case of sections and beams in category 2b,
29 ECU per tonne in the case of sections and beams in category 2c,
35 ECU per tonne in the case of sections and beams in category 3.
The sections and beams in categories 1, 2a, 2b, 2c and 3 are as defined
in the Annex to the Commission communication of 29 December
1982(2) onguidan ce prices.
Regarding sections and beams whose dimensions correspond to the
specifications of the British Standard No 4 or to a similar dimensionalstandard, the minimum prices shall be equivalent to the pricespublished inthe British Steel Corporationprice list No 5, applicable
from 1 August 1983, reduced by £ 15 per tonne.
2. The minimum prices resulting from the provisions of paragraph 1
shall be converted into national currencies using the followingexchange rates, which correspond to the average value of the ECU inthe three-month period September, October and November 1983:
Bfrs/Lfrs 45,9085
DM 2,262991983S3715 — EN — 02.03.1984 — 001.001 — 3
(1) OJ No C 116, 29. 4. 1983, p. 2.
(2) OJ No L 370, 29. 12. 1982, p. 15.
▼B
Fl 2,5354
£ 0,572388Dkr 8,16108FF 6,87803Lit 1 368,24£ Irl 0,726399Dr 80,1694
3. The products referred to inparagraph 1 (a) to (g) are those
defined from the point of view of shape and dimensions in Euronorm
79-82, in the case of basis steels and quality steels in accordance withEuronorm 20-74, and in the case of special fine-grain weldable struc-tural non-alloy and alloy steels known as ‘Sonderbaustähle’, includingsubstandard products and seconds subject to the conditions indicated inArticle 5.
4. These minimum prices shall apply to undertakings in the steel
industry of the European Coal and Steel Community and their sellingagencies and intermediaries as referred to in Decisions Nos 30-53(
1)
and 31-53(2).
5. In order to maintain a uniform level of minimum prices within
the commonmarket, the Commissionshall adjust the min imum prices
in accordance with official variations in exchange rates.
Article 2
1. The minimum prices shall be basis prices for the basic quality of
the product, from the points on which the price lists are based (basing-points), to which apply the extras for quality, size, etc., and the termsof payment provided for in the price list of the leading producer interms of volume for the product inquestioninthe coun try inwhichthe product is delivered. These minimum prices shall be net of all
rebates, with the exceptionof rebates to dealers which are published
inthe price lists.
2. Where the price lists contain partially effective prices which take
account of quality and/or size, the differences between such effective
prices and the price for the basis quality and/or size shall be regardedas extras for quality or size.
3. Extras for size and quality and increases and surcharges published
in the price lists shall not be reduced. Discounts and rebates, of what-
ever kind, published in the price lists and conditions of sale or notifiedto the Commission, may not be increased.
4. Undertakings whose published price lists and notified conditions
give rise to prices lower thanthe min imum prices shall publish ornotify new conditions to bring them into line with this Decision within15 days of its entry into force.
Article 3
1. Minimum prices shall be compulsory for deliveries effected
withinthe commonmarket as from 1 Jan uary 1984.
2. As regards long-term contracts concluded between steel undertak-
ings and users before 9 November 1983 in respect of deliveries to beeffected after 30 June 1984, undertakings may obtain a derogation fromthe minimum prices if contracts including industrial cooperation
clauses are involved or if the contracts fix the prices precisely. To this
end, undertakings should submit a duly substantiated application to theCommissionby 31 Jan uary 1984. The applicationshould inparticular1983S3715 — EN — 02.03.1984 — 001.001 — 4
(1) OJ No 6, 4. 5. 1953, p. 109.
(2) OJ No 6, 4. 5. 1953, p. 111.
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contain the contracts in question. The minimum prices shall apply
pending a decision by the Commission on the applications.
Article 4
Minimum prices shall not apply:
— to deliveries of ship plate to Community shipyards for the purpose
of building seagoing vessels and other structures in respect ofwhich the special provisions of heading Nos 89.01, 89.02 and89.03 of the CommonCustoms Tariff provide for the suspen sionof customs duties,
— to the products design ated inArticle 1 (1) (a) to (e) used inthe
form of hot-rolled products for the productioninthe Commun ityof welded tubes and pipes.
Article 5
Undertakings may grant rebates for substandard products and seconds
on condition:
(i) that for each of the products referred to inArticle 1 (1) (a) to (g),
total deliveries inrespect of which a rebate has beengran ted forthis reason during a calendar quarter do not exceed, in relation tototal deliveries of that product during that quarter, the average
percentage of deliveries of substandard products and seconds
recorded for the product in question during the 12-month period 1January to 31 December 1982;
and
(ii) that the average rebate for all deliveries of substandard products
and seconds for the quarter in question does not exceed:
18 % inthe case of (a) (hot-rolled wide strip (coils)),
12 % in the case of (b) + (c) (hot-rolled narrow strip, or narrow
strip obtained by slitting hot-rolled wide strip),
12 % in the case of (d) (hot-rolled sheet obtained by cutting hot-
rolled wide strip),
15 % inthe case of (e) (reversin g mill plate),
18 % inthe case of (f) (cold-rolled sheet),
10 % in the case of (g) (sections and beams),
of the respective minimum price resulting from the provisions of
Articles 1 (1) and (2) and 2 (1) but without applying the extras
indicated in Article 2 (1) and (2).
Article 6
1. Alignments on offers from non-member countries in respect of
which the Commission has not published a ban on alignment must not
have the effect that the resulting basis prices ex basing-point are belowthe minimum prices.
2. This Decision shall not affect the special price rules concerning
sales to Greece pursuant to Article 129 of the Act of Accession.
Article 7
The Commission may amend this Decision, in particular in the light of
experience.
Article 8
This Decision shall enter into force on the day of its publication in the
Official Journal of the European Communities .
This Decision shall be binding in its entirety and directly applicable in
all Member States.1983S3715 — EN — 02.03.1984 — 001.001 — 5