ARCHIVES HISTORIQUES 
DE LA COMMISSION 
 
 
 
COLLECTION RELIEE DES 
DOCUMENTS "COM" 
 
 
 
 
COM (85) 105 
 
 
 
Vol. 1985/0 033 
  
 
Disclaimer  
Conformém ent au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983 
concernant l'ouverture au public des archives historiques de la Communauté économique 
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983, 
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003 
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents 
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit 
règlem ent. 
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983 
concerning the openi ng to the public of the historical archives of the European Econom ic 
Community and the European Atomic Energy Communit y (OJ L 43, 15.2.1983, p. 1), as 
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243, 
27.9.2003, p. 1), this f ile is open to the public. Where necessary, classified documents in this 
file have been declassified in conformity with Article 5 of the aforementioned regulation.  
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom  1. 
Februar 198 3 über die Freigabe der historischen Archive der Europäischen  
Wirtschaftsgemeinschaft und der Europäischen Atomgem einschaft (ABI. L 43 vom  15.2.1983,  
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. Septem ber 2003  
(ABI. L 243 vom 27 .9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit  
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5  
der genannten Verordnung freigegeben.  
COMMISSION OF THE EUROPEAN COMMUNITIES
C O M(85) 1 0 5  final
Brussels, 15 March 1985
C O M M U N IC A T IO N  B Y  T H E  C O M M IS S IO N  T O  T H E  C O U N C IL
Scrap supplies
C O M (85) 105 f inal

C O M M U N IC A T IO N  F R O M  T H E  C O M M IS S IO N  T O  T H E  C O U N C IL
Scrap supplies
The development of the scrap market has been closely followed by the 
Commission, particularly since 1983. At that time, an increase in scrap 
consumption coincided with the permanent rise in the U S  $. Given that 
the U S  is the biggest exporter of scrap the U S  price therefore determines 
the world price of this "raw material".
In the view of the Commission (which it  has already had the opportunity to 
express in a  working document sent to the Council on 5th October 1984 
C0M(84)559) there is , s tric tly  speaking, no scrap shortage. O n  the 
contrary, it  is a  pricing phenomenon (combined with more restrictive terms 
of payment). The present state of the steel market can not allow any 
increased costs especially in view of the overcapacity which s t i l l  exists. 
This situation forces the Commission to insist on the restructuring of the 
steel companies concerned.
Therefore it  has in mind two measures to bring about a  certain relaxation 
quickly: on the one hand fiscal measures aimed at encouraging higher scrap 
stocks and, on the other, agreements with scrap merchants to oblige them 
to m ake available to undertakings the quantities which they can not get 
from their usual suppliers.
The fiscal measures could be based principally on a  lower estimate of 
opening stock figures for scrap.
These fisca l measures would apply to steel users as well as scrap mer­
chants, insofar as the la tte r would reserve a  part of their stocks for the 
h o m e  market.
The Commission might ultimately m ake appropriate proposals defining the 
nature as weel as the terms of the fiscal measures mentioned above.
A s for as trade in scrap is concerned, the Commission has begun in-depth 
discussions with the professional organisation (C O F E N A F ) of the Community 
scrap merchants, in order to set up a  system whereby the Commission can 
recognize the requirements of undertakings with supply problems. The C o m ­
mission w ill receive copies of orders from users addressed to traders 
(COFENAF). The la tte r w ill guarantee to the Commission that it w ill assure 
a v a ila b ility  to the enterprises concerned. Thus the Commission w ill be 
able to exercise control over the soundness of such operations and monitor 
the enforcement of these commitments.
The transactions w ill be undertaken under the usual sales conditions, and 
the Commission w ill not intervene in the purely commercial aspect of these 
transactions. The Commission w ilt receive copies of orders coming from 
steel companies which are in d iffic u lty  and can in this way ensure the 
monitoring of deliveries (without which this would constitute an unusually 
heavy adm inistrât!ve burden). A n explanation of this system which w ill 
have been finalized as a  result of letters, for example, between ihe 
Commission and C O F E N A F , w ill be submitted to the Council.

2.
The Commission feels that these two measures, which can be implemented 
rapidly, should reduce the tension which presently exists in the scrap 
market without the introduction of a r tific ia l measures which could hide 
true price levels, especially at the fin a l product stage, or put in jeo­
pardy the relevant restructuring. The Commission w ill of course inform the 
Council of the effect of these measures, once they have been implemented. 
It w ill be possible at that time to have a  more detailed view of the 
situation, especially since the Commission w ill have the experience of 
individual cases (through the requirements set out by steel products, and 
channelled through to scrap merchants), which w ill give a  more exact 
picture of the nature of the problems encountered by certain steel-pro­
ducers.