ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(77)297
Vol.1977/0102

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(77)297final.
Brussels.30June1977»
COMMUNICATION FROMTHECOMMISSION TOTHEREPRE­
SENTATIVES OFTHEGOVERNMENTS OPTHEMEMBERSTATES
OPTHEECSCMEETINGWITHINTHECOUNCILON:
–measuresto"beconsideredinrespectofscrap
exportstothirdcountries
-theextensionoftheDecisioninrespectof
exportsofalloysteelscrap
DRAFTDECISION OFTHEREPRESENTATIVES OFTHE
GOVERNMENTS OFTHEMEMBERSTATESOFTHEEUROPEAN
COALANDSTEELCOMMUNITY,MEETINGWITHINTHECOUNCIL
concerningexportsofferrousscraptothirdcountries
COM(77)297final

Exposedesmotifs:
Depuisle6mars1953Lesexportations deferraillescommunautaires versles
paystierssontinterditespardécisiondesreprésentants desEtatsMembres
réunisausoinduConseil.Desdérogations sontrégulièrement accordéesaux
EtatsMembrespermettantl'exportation decertainstonnages.
Adeuxreprises/en1963/1964et1971/1972,lasuspensiondel'interdiction a
étéadoptéeparlesGouvernements,enaccordaveclaCommission.
Ladécisiondedérogationactuellement envigueur,accordantdescontingentspour
l'exportationdeferraillesverslespaystiers,vientàexpirationle30juin1977.
LeprojetdeCommunication ci-jointestdestinéàorienterlesdiscussions au
seinduConseilpourl'adoptiondurégimeàsuivreenmatièred'exportations de
ferraillesverslespaystiersàpartirdu1erjuillet1977.

Communication fromtheCommissiontotheRepresentatives
oftheGovernmentsoftheMiemWr StatesoftheEDSC meeting within
theCouncil on :
-measurestobeconsideredinrespectofscrapexportstothird
countries;
-theextensionoftheDecisioninrespectofexportsofalloysteelscrao.
Introduction
TheCommissionstaffworkingpaperSEC<77)1925of18May1977analysesthe
stateoftheCommunityscrapmarketanditsforeseeabletrend,andliststhe
variouspossiblewaysofliberalizing exportsofscraptothirdcountries,as
desiredbysomedelegations.
WhentheCouncilWorkingPartyonECSCQuestionsdiscussedthisdocumentthe
followingpointsemerged:
-theneedtorefineestimatesoftheforeseeablestateoftheCommunityscrap
marketforthenextfewmonths;
-thodesireofthelargemajorityofthedelegationstoliberalizethedecision
onscrapexportstonon-membercountries;
-certaindifferencesofopiniononhowtodealwiththeexportingofshredded
scrap.
A.ProspectsfortheCommunityscrapmarketinthecomingmonths.
ι■ .■ .. ■'.'.
TheforwardsteelprogrammeabouttobeadoptedbytheCommissionestimates
amonthlyCommunityrawsteelproductionrateofaround11.1milliontonnesinthe
thirdquarterand11.6milliontonnesinthefinalquarterof1977.
Theconsiderations fjutforwardinthisdocumentarestillvalid;themarket
situationhasnotchangedappreciably,particularly asregardsprices.However,
thereisthepossibilitythatlow-priceAmericansuppliesmayreinforcethe
downwardpressuresinthecourseofthesummer."

Dupingthethirdquartertheoverallspecificconsumption offerrous
scrapshouldfalltoaround435kg/towingtothenormalseasonaldrop.It
shouldhoweverrisetoaround445kg/tinthefinalquarter,followingtherelative
increaseinthesteelproductionrate.(Overallspecificconsumption hasbeen
around440kg/tforthepast13months).
TheestimatescontainedinAnnexIhavebeendrawnuponthisbasis.They
showthatoutsidepurchasesbytheironandsteelindustryshouldamounttoaround
2.8milliontonnespermonthduringthethirdquarterwhich,inviewofser.sonal
fluctuations,approximatestothemonthlyaverageof2.9milliontonnesrecorded
forthepast18months.Thesepurchasescoveringtheironandsteelindustry's
requirements shouldreach3.1milliontonnesamonthinthefinalquarter;the
increaseinoutsidepurchasesbytheironandsteelindustryshouldencouragea
certainconsolidation oftheCommunityferrousscrapmarket.
B.Measurestobeconsideredinrespectofscrapexportstothirdcountries.
TheECSCWorkingParty'sdiscussionsof18May1977revealedthatseveral
delegations wishedtoliberalizetherulesonexportsofferrousscrap.
........... ^
TheCommissionrecognizesthatthedeepdepressioncurrentlyaffectingthe
Communityferrousscrapmarket(seeDoc.SECC77)1925)justifiestheadoptionof
measuresofthistype.However,itwoulddrawtheattentionoftheGovernment
representatives totheprecariousbalanceonthismarket,theever-recurring sudden
reversalsoftrendsandtherelativelyfavourableprospectsforthestateofthe
marketinthefinalquarter.'
Consequently,whileitproposesthepreliminarydraftDscisioncontainedin
AnnexIIwhich,providesformoreliberalmeasures,theCommissionrequeststhat
theGovernmentrepresentatives agreetore-examinethecurrentand
prospectivesupplysituationforCommunityusers,withaviewtorevisingthe
Decisionassoonasthepricesforcategory1ferrousscrapreachthefollowing
.levels: .>
~FrenchferrousscrapfreeModane:1510FF/t ,•
-GermanferrousscrapfreeBasle:i250DM/t
-Britishferrousscrapfreeworks:i,50fc/t

TheCommissionproposalcontainsthefollowingprovisions :
1.forthesecondhalfof1977:
-thesuspensionasanexperimental measureofthebanonexports ,ofpoor-qualify
ferrousscrap;
-thegrantingofaquotaforgood-quality ferrousscrap.
Twopossibilities areenvisagedfortheproblemofshreddedferrousscrsp
(category33).Thefirstistoincludeitinthelistofpoor-quality ferroussere,:
forwhichthesuspensionoftheprohibition onexportsisproposed.Inthiscase
thequotaallowedforgood-quality ferrousscrapshouldbearound216000tonnes.
Thesecondwouldbetoexcludeshreddedferrousscrapfromthelistof
poor-quality scrapandtoincreasethequotaforgood-quality ferrousscraptoaround
320000tonnessothatexportsofthistypeofferrousscrapmaybevirtually
free(proposalinsquarebracketsinArticle1(2).
TheCommissionproposesthischoicebetweenalternatives intheinterestsof
achievingidenticaltreatmentofthistypeofferrousscrapintheexporting
countries,despitethedifferentintentionsexpressedbysomedelegations.The
Commissionconsidersthatanybasicdivergenceinthetreatmentofthistypeof
ferrousscrapwouldamounttodiscrimination betweendealersinthedifferent
countriesandwouldbelikelytoleadtodeflections oftrade.
2.Thesystemtobeadoptedfrcm1January1978
TheCommissioncontemplates twoalternatives :
1.toextendtothefirsthalfof1978theprovisionsadoptedforthesecondhalf
of1977,subjecttoareviewofthosupplyconditionsfortheironandsteel
industry(Article1(3)).
2.thealternativeproposalistoadopt,foraslongasaMemberStateorthe
Commissiondoesnotrecordanyappreciable changeinthesupplyconditions
fortheironandsteelindustryorfoundries,aquarterlysystemsimilarto
thatproposedforthesecondhalfof1977,i.e.suspensionofthe
prohibition onexportsoflow-qualityferrousscrapandthegrantingofa
quarterlyquotaof108000tonnesforgood-quality ferrousscrapifthe

suspensionoftheprohibitionisalsotocovershreddedferrousscrap,orof
160000tonnesifthe,sh(reridedferrousscrapistobeexportedunderthesystem
adoptedforgood-quality ferrousscrap(versioninsquarebracketsinArticle1(3)V
C.TheextensionoftheDecisioninrespectofexportsofalloysteelscrap.
TheDecisioninrespectofexportsofalloysteelscrapisduetoexpire
on30June1977.
DivergingtrendsonthemarketsofsomeMemberStatesandontheworldmarket
forthistypeofferrousscrapruleoutanyconsideration ofaradicalchangein
thepolicypursuedhithertointhissector.
Consequently,theCommissionproposesthattheDecisionof29June1970be
extendedtocoverthesecondhalfof1977.However,itwoulcidrawtheattentionof
theMemberStatestoArticle1(1)oftheDecision.TheCommissionrequeststhe
Governments tomonitorthetrendofthemarketinstainlesssteelscfapin
particularandtoapplymorestrictlytheprovisionsofthisArticleifthemarket
continuestogrowsteadier.

Demand
Consumption insteelworks
Consumption inblastfirnaces
Consumption inrollingmills
Variations instocks
Exports
TOTAL
Resources
Recuperation inirona:rd
steelworks
Netinternai pur:hases
Impcrts
TOTALSupplies andrequirements ofscrapintheCommunity
(000000tons)AnnexI
1975
YearMonthly
Average1976(e)
YearMonthly I.Half-Monthly
Average YearAverage1977<f>
3.Quarter Monthly
Average4.Quarter Monthly
Average
55.8 4.66 59.64.97 29.6 4.93 14.5 4.83 15.5 5.17
1.70.14 1.80.15 0.9.0.15 0.5 0.17 0.5 0.17
0.30.02 0.30.C2 0.2 0.03 0.1 0.03 0.1 .0.03
+0.40.03 +0.10.01 ±0 *0 Îo -0+0 -0
0.80.07 0.90.08 0.4 0.07 0.2 0.07 0.3 0.10
59.0 4.92 62.75.23 31.1 5.18 15.3 5.10 16.4 5.47
24.8 2.06 26.32.20 13.1 2.18 6.5
32.7 2.73 34.62.38 17.5 2.92 3.5
1.50.13 1.30.15 0.5 0.08 0.2
59.0 4.92 62.75.23 31.1 5.18 15.32.20
2.83
0.07
5.106.7
9.4
0.3
16.42.24
3.13
0.10
5.47
(e)=estimation (f)=forecast
/

ANNEXII
DRAFT
DECISION
OFTHEREPRESENTATIVES OFTHEGOVERNMENTS OF
THEMEM3ER STATES OFTHEEUROPEAN COALANDSTEE.LCOMMUNITY ,
MEETING WITHIN THECOUHCIL, ^
OF
concerning exportsofferrousscrap
tothirdcountries
THEREPRESENTATIVES OFTHEGOVERNMENTS OFTHEMEMBER STATES
OFTHEEUROPEAN COALANDSTEELCOMMUNITY,MEETING WITHINTHE
COUNCIL,
inagreement withtheCommission ,
HAVEDECIDED A3FOLLOWS ,:

Article 1
1.-WithoutprejudicetotheDecisionofinrespectofexportsof
alloysteelscraportotheDecisionofinrespectofexportsof
rolling-mill cylinders,applicationoftheDecisionof6March1953concerning
theprohibition ofexportsofferrousscraptothirdcountriesshallbesuspenoec
asanexperimental measureforthosecategoriesofferrousscrapincludedinthe
listattachedtothisDecisionfortheperiodfrom1July1977to31Dcceirber1977,-
2.Furthermore,bywayofderogationfromtheDecisionoftheRepresentatives
oftheGovernmentsoftheMemberStates,meetingwithintheCouncil,of
6March1953,theFederalRepublicofGermany,France,theBeneluxcountriesandthe
UnitedKingdomshallbeauthorizedduringthisperiodtoexporttothird
mm mmcountries216000/320000_/tonnesofferrousscrapotherthanthosecategories
includedinthelistattachedhereto.Thisquantityshallbeapportionedas
follows:
FederalRepublicofGermany 54000t/80000t/
France 54000t/80000t_7
Bénélux 54000t/~80000t7
UnitedKingdom .54000t/80000t_7
3.Paragraphs 1and2shallapplyduringtheperiodfrom1Januarytp
30June1978,providedthatareviewofthisDecision,tobemadebefore
31December1977,revealsthatthesupplyofferrousscraptotheironandsteel
industryandfoundriescontinuestooperatesatisfactorily .

3. Thesuspension oftheprohibition onexports contained inparagraph 1sjhall
beextended byquarterly periods from 1January 1978 ,sslong asaMember
State ortheCommission does notrecord anappreciable change intheconditions
ofsupply totheiron andsteel industries orfoundries .Or,thesame conditions ,
andforeach quarter ,theFederal Republic ofGermany ,France ,theBenelux
countries andtheUnited Kingdom shall beauthorized toexport tothird countries
Mi
108000i160000_/tonnes offerrous scrap other than those categories included
inthe list attached hereto .This quantity shall beapportioned asfollows :
Federal Republic ofGermany 2700Ct/40000tj
France 27000t/40000t_7
Benelux 27000t/~40000t_7
United Kingdom 27000t£40000Xj
4. These exports shall besubject tolicensing .
Article 2
1. Theexport licences issued during theperiods referred toinArticle 1shall
bevalid fortwomonths andshall begranted only toscrap dearlers whoare
qualified exporters andwhonormally deal with third countries ,onpresentation
ofcontracts actually concluded .
Member States shall ensure asfaraspossible that licences issued
monthly donotconcern amounts which exceed /one sixth oftheamounths setout
inparagraphs 2and3_/ /onesixth oftheamounts setout inparagraph 2and
onethird oftheamounts setoutinparagraph Z_7ofArticle 1.
2. Each month Member States shall transmit totheCouncil Secretariat allthe
figures relating tolicences granted andthequantities andqualities of
ferrous scrap actually exported tothird countries ,stating thecountries of
destination andtheprices charged .TheCouncil Secretariat shall forthwith
forward this information totheother Member States andthe Commission .27000 t/40000 tJ
27000t/~4Q000t_7
27000t/~40000t_7
27000t/~40000t7

-4-
Article 3
/. ]},t.J;
'ThisDecision maybereviewed atanytime,attherequestofthe
Government ofaMemberStateortheCommission .

ANNEX
CategoriesofferrousscraoreferredtoinArticle1
•*
'. '\ ■
(a)Bundlesofold,black,light,recycledscrap
(categoryNo55ofthenewclassification ofscrapforsteel-works;
-Nimexeheadingex73.03.53)
(b)Bundlesofhydraulically compressed,light,blackandwhitescrap,
mixed,stronglycompressed,requiringnobinding.
(categories Nos58-59oftheformerECSCclassification
-Nimexeheadingex73.03.55)
(c)Turningsofpigironorcastiron,unalloyedironorsteelexcluding
turningsofblue,dryandcleanpigironandcastiron
(categories Nos40,41,42and45ofthenewclassification for
scrapforsteelworksandNos43and44oftheformerECSCclassification
-Nimexeheadingsex73.03.20and73.03.51)
^(d)Shreddedscrapinpiecesmeasuringnomorethan15cminanydirection,
clean,freefromscale,steelturnings,cast-ironborings,foreignmetals
andothermaterials
(categoryNo33cfthenewclassification ofscrapforsteel-works;
-Nimexeheadingex73.03.59)1