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COM(81)149
Vol.1981/0036

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COMMISSION OFTHEEUROPEANCOMMUNITIES
COM(81)149final
Brussels,25thMarch1981
STEELPRICEPOLICY
(Communication fromtheCommissiontotheCouncil)
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COM(81)149final

STEEL PRICE POLICY
The imposition ofcompulsory production quotas has had the effect of
aprice increase oftheorder ofDM.50-100 ,with theexception of
reinforcing bars andwire rod.This price increase isstill completely
inadequate ,partly because current prices arestill considerably below
those atthebeginning of1980 andpartly because costs ofproduction
have considerably increased .
Themarket situation indicates theneed for afurther increase inprices
byanappropriate policy inthearea ofthe steel prices .The
Commission accordingly proposes toundertake anumber ofactions which
require collaboration bytheMember States .
1. Restructuring ofprice lists
The list prices forthe large majority ofproductive undertakings
areconsiderably higher than theprices charged inthemarket . It
ispractically impossible tobase aneffective policy onthese
largely unrealistic list prices .
Existence ofalarge grey area between the list prices and the
prices charged hasrepresented aserious obstacle which ,inthe
past ,hashampered theincrease insteel prices .
The Commission will therefore undertake measures toensure an
adaptation ofthe lists toreality ; itwill reinforce andcomplete ,
forthis purpose ,thechecks toensure observance ofArticle 60.

Obligation forundertakings andmerchants
The checks recently carried out atacertain number ofsteel
producers have revealed that theundertakings which sold their output
toasteel merchant who subsequently acts under hig own name donot
keep original documents relating tothese sales ;the checks in
theundertakings have therefore been ineffective .
Since existing regulations are not adequate ,the Commission intends
tocomplete thedecision byobliging the steel producers tokeep
complete files containing all the sales andpayment documents and
toextend this obligation tothe sales organisations .
TheCommission hasalso become aware that certain steel undertakings
have forced the steel merchants which they control toactvirtually
asasales organisation oftheundertaking .These steel merchants
have not sofarbeen subject totheobligation torespect the list
prices oftheproducers .
TheCommission therefore intends ,totheextent necessary ,tocomplete
theexisting regulation bysubjecting this category ofsteel merchants
totheobligation torespect the lists ofthe steel producers .
Allthe same ,theabove decision would allow theimposition of
observance ofcertain price rules only onapart ofthemerchants .
Therefore ,theCommission also intends toaddress toMember States
arecommendation with aview toensuring observance ofthe rules
implementing theprovisions ofArticle 60(1 )bytheundertakings
andorganisations carrying out adistribution activity inthe steel
area .
This recommendation would oblige Member States toimpose onsteel
merchants aprohibition ofunfair competitive practices and
discriminatory practices referred toinArticle 60(1 )ofthe
ECSC Treaty .

Checks
The Commission ischarged bythe ECSC Treaty tocarry out checks
onthe spot intheundertakings and inthe sales organisations .
These checks will beenlarged and will concern notonly the
sales realised inthepast butwill take place ,above all,at
the time ofthe conclusion ofasales contract and ofthe payment .
Forthis purpose ,theCommission ,which already has atits
disposal alarge team ofinspectors for the surveillance of
production quotas ,will employ this team totheextent appropriate
fortheabovementioned checks asareinforcement ofthe inspectors
ofthe Commission .
Thedecision envisaged under point 2concerning the keeping of
sales files bythe undertakings and sales organisations goes
together with the reinforcement ofchecks proposed here .
Atthesame time ,theCommission will askMember States ,inthe
framework ofArticle 86,toundertake checks atthebuyers of
steel products sothat the national inspectors verify atthe buyers
theobservance ofthe price rules onthe part ofsteel undertakings .
Because ofdifficulties indetecting breaches bythe steel
undertakings ,across check'of this kind will prove indispensable .
Inacase where national inspectors detect breaches committed by
steel enterprises during their check atthebuyers theCommission
will apply' tothese producers thepenalties provided bytheTreaty .