ARCHIVES HISTORIQUES 
DE LA COMMISSION 
 
 
 
COLLECTION RELIEE DES 
DOCUMENTS "COM" 
 
 
 
 
COM (84) 033 
 
 
 
Vol. 1984/0 010 
  
 
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
COM(84) 33 final
Brussels, 26th January 1984
SCRAP - THE MARKET SITUATION
(Communication from the Commission to the Council)
COM(84) 33 final

Subj ect; Scrap - the market situation
PRICE CHANGES
In 1983 the scrap prices in EEC markets almost doubled (on avergae).  
They were at their historic minimum in January 1983 (  (Annex 1-2).
The price increase which was maintained during the first quarter of  
the year was a normal phenomenon in view of the very low prices  
obtained at the beginning of the year. It was simply a question of  
market adjustment.
By contrast, during the last few months of 1983 an external phenomenon  
took over as the cause of changes in prices and, in addition, factors  
due to climate led to a drop in the American supplies to international  
markets.
Hence:
1. the composite price rose (Annex 3);
2.  an elemnt of speculation, related to developments in the dollar  
exchange rate, probably pushed up normal demand (Annex 3);
3. EEC scrap merchants, attracted by the high price and cash payments  
. in dollars, exported 55% more scrap to non-Community countries
(6.5 million t) than they had done in 1982;
4. prices in the EEC reflected those obtained in world markets and  
the fact that sellers preferred to supply non-Community countries;  
in other words the buyers' market became a sellers' market.

-  2 -
EXTERNAL TRADE
1. As already mentioned, exports, increased from 4.2 million t in 1982  
to 6.5 million in 1983 - an increase of 55% (Annex 4).
2. Imports from non-Community countries dropped from an average  
2 million t a year during the last few years to 500 000 t in  
1983.
3. Consequently the EEC's balance of exports over imports increased  
from + 2.6 million t in 1982 to + 6 million in 1983.
INTRA-COMMUNITY TRADE
At present the intra-Community trade structure is as follows:
Total tonnage: 7 million
Exporters: Germany 375£
France 36%
Nether­
lands 1 1%
U.K. 8%
Others 8%
Importers: Italy 63%
Germany 15%
BLEU ' 1 2%
DENMARK 1%
OTHERS 9%

- 3 -
Italy is therefore the country most affected by the resulting situation  
(it should be remembered that electric steel production in Italy accpunts  
for 53% of all steel production as compared with the Community average  
of 24%).
BALANCE BETWEEN SUPPLY AND DEMAND
We are forced to conclude that the new balance between supply end demand  
is the result of the level of prices rather than a shortage of scrap in  
certain EEC markets. On the other hand, it is possible .that during  
December some users had real difficulties in obtaining supplies of mix,  
although this situation will not delay their deliveries by more than a  
few weeks.
Taken as a whole the above points suggest the following conclusions:
- Developments in the last few months were sparked off by factors of a  
speculative nature whilst the exchange rate between the dollar and the
Community currencies no longer played a very important part.
- Equally, however, the dollar exchange rate probably encouraged  
speculative demand on the part of steel producers and merchants as  
both went for non-Community high stocks in hand to counteract rising  
prices.
" It is not impossible that certain Community steel makers did the same  
thing.
- The scrap market was therefore affected by factors typical of a  
fluctuating economic situation, but the magnitude of the phenomenon  
and the suddeness with which iy came about had obvious negative effects  
on some companies. In this connection it should be remembered that  
between 1974 and the end of 1983, the price for scrap increased by only  
about 30% (at current rates).

- 4 -
PROSPECTS
The problem of the scrap market therefore has to be seen against the  
background of the expansion of undertakings using this raw material.
If we take another look at the options adopted in the "General Objectives  
1985" the following points emerge:
SCRAP
For their raw material requirements, the undertakings mainly us’ e scrap  
from their own manufacturing processes. Until very recently this source  
represented 40% of total Community supplies.
However, this proportion will change considerably as a result of the 
increase in the number of continuous casting installations as the latter  
produce less scrap. Adding continuous casting plant to an integrated steel  
mill usually results in more scrap having to be bought (+ 115 k/t of  
finished product), whereas when continuous casting is teamed up with  
electric steel-making the amount of scrap that has to be purchased  
decreases (-40 k/t of finished product).
Assuming a specific scrap consumption of 240 kg in L0 converters, a  
total scrap weight of 70% in continuous casting (81% in electric steel  
plant and 66% in oxygen smelting plant) and that all production will  
be carried out in electric steel plant, some 42.0 million tonnes of  
scrap will have to be bought in 1985.
BOU6HT 4t>AP »fOUimWtWTI IN im('00(1 000 tonne!)
Procetf Crude »feel productionProduct! 
for tele•Ought tcr«p 
rrauirrd per 
tonne of productbought*<r*p
Circuit. . .  , .■ _  1*4.0 continuous totting it.*  of which {  s t |A |A90, $it.T
«.*<1.0o9>
(1.109)**. j
4.0
Qeyger». . .  . . . .  (4*. 4  cent Inuout totting •7.4 of which ln, olf n . J( ISO) 
(  fc4>9.4
1.5·
Sleel foundries 1,4 1,*<  «W> 1.*
Dlett lurn.Cfi0.9
I0IAI 114,7 114,7 101,6 *  ?.0

-5-
In 1985 the total amount of scrap available in the Community for the steel  
industry should amount to some 41.6 million tonnes. Demand and supply  
should then qlmost be in balance.
SCRAP R E Q U IR E M E N T S  AND RESOURCES
('000 000 tonnes;
1974 1975 1976 1977 1978 1985
Crude steel production (H q.st.excl.) 
Scrap consumption 
ô w n  circulating scrap153,5
64,7
31,0123,5
54.1
26.1132,2 ■  
57,7 
25,9124,4
55,0
24/9131,0
59,1
24,3-118,3
53,3
13/1
Bought'scrap requirements in steel plant 
Cpnsumption in foundries.
Consumption in blast furnaces33,7
1,6
2,2.28,0
1/6
1/831,8
1/5
1/730,1
1/4
1,634,8
1/3
1,440,2
1/2-
0,6
Total requirements 37,5 31,4 35,0 33,1 37,.5 42,0
N e w  process scrap 
Capital scrap15/2
21/213,9
17,013,£ 
27,8
Total internal resources 36,4 30,9 41 ,6
Requirements not covered by 
internal resources1/1 0/50,4
CONCLUSION
In the context of the anti-crisis measures it is hard to accept that, in  
the midst of the structural difficulties facing the steel industry, there  
is the problem of raw materials supplies. The Commission considers that,  
even if the increase in the price of scrap can be presented as a return  
to normal prices in view of the very low prices charged in the last few  
years, these price movements should under no circumstances acquire a  
speculative aspect that would undermine the efforts the steel industry  
is currently being called upon to make. The Commission therefore  
proposes that the Governments of the Member States that traditionally  
export scrap limit exports of this material to non-Community countries  
to the average for the years 1981, 1982 and 1983, i.e. as follows, per  
Member State:

-6-
Germany: 370 000 t
France: 750 000 t
Netherlands: 620 000 t
United Kingdom: 2 950 000 t
Belgium & Luxembourg: 200 000 t
(N.B.: As the figures available for 1983 so far are only estimates/
corrections will have to be lade when the final statistics  
are available)

Annex 1
VARIATION IN THE PRICE OF SCRAP ON THE  
MAIN MARKETS
1983 - VARIATION RATE BETWEEN JANUARY AND DECEMBER
Quality 03
Germany +25%
Belgium +89%
Denmark +47%
France +84%
Italy +74%
Netherlands +49%
UK +74%
m
USA +44%
COMPOSITE PRICE

Anne* 2
AVERAGE PRICE OF SCRAP AT THE END OF EACH PERIOD IN 1983
Quality D (DM) B (FB)DK (DIO F (FF) I (Lit) NL (FL)UK (£st)
03 160 2800374 285 751
31
41 1 2 0 1800292 215 65 140 18
JANUARY 53 180 3200464 435 1 0 0142
33 180 901
140
03 160 2500374 300 751
139
41 1 2 0 2500292 215 67 150136MARCH 53- 180 4300464 435 105153
33 180 951l47
03 160 4300409 355 851
136
41 1 2 0 2700327 265 78 180133
JULY 53 180 4600499 525 136 48
33 180 1 2 1i46
03 2 0 0 4500549 425 95142
41 150 3000467 345 93 225 40
SEPTEMBER 53 2 2 0 4800639 625 155 50
33 2 2 0 140 52
03 2 0 0 5300549 525 130 54
41 150 4200467 445 125 208 47
DECEMBER 53 220 5800639 705 195 63
(33 2 2 0 180
<64

Annex 3
COMPOSITE PRICE
ECU/t ECU/ $
January 83 60.50 62.89 0.962
February 67 50 71.50 0.944
March 72.83 77.64 0.938
Apri l 71.17 76.94 0.925
May 66.83 72.72 0.919
June 70.83 79.40 0.892
July 71.50 81.34 0.879
August 75.17 88.34 0.852
September 77.17 90.58 0.352
October 77-50 89-49 0.866
November 80-50 95.38 J. 344
December 87.17 106.05 U.K/2
Percentage variation
between January + 44 % + 68.6 %
and December 1983

EXPORTS OF SCRAP F R O M  THE ECSC AREA TO NON-COMMUNITY COUNTRIESAnnex A
Year
1 9 7* 
1 9  7 5  
1  9 7 e  
1 9  7  7  
1 9  7 8  
1 9  7 9  
1 9 B  0  
1 9 8 1 
. 1 9  8 2BENELUX NETHERLANDS
35.000  
B .O O D
11P.C00
165.003
155.000177.000
175.000  
1B6.000
200.000
181.000
265.000
270.000
403.000
411.000FRANCE
137.000
138.000
187.000
768.000
269.000
471.000
400.000
647.000
680.000G ER M A N Y
177.000
176.000
112.000
149.000
174.000
797.000  
214-C O O
358.000
307.000UNITED KINGDOM
216.000
700.000
482.000
1.015.000  
675.003
1.362-003
2.397.000
7.570.000TOTAL
391.000
605.000
685.000
1.099.000
1.677.000
1.659.000  
2.9S7.Ö30  
3.|7.j.0nc
4.068.000
1  9 8 3 (fir s t  s e m e s t . )
lan u a ry  ' -
F eb ru ary
March
Apri l
May
June
147.000 571.00052.000
77.000
87.000
69.000
97.000  
90.0r.0
467.00041.000 
44.0C0
32.000
3 8 .0 0
76.000 
47.0C3
773.O C O777.000
303.000
474.000
337.000  
3G7.0U0
366.000
1.954.003 3.307.000

Annex· 5IMPORTS OF SCRAP FROM NON-COMMUNITY COUNTRIES ---- ---
Ye
ar - BLEU ■  Netherlands■  ·Italy Germany France U.K. ■  Denmark EUR
T97 4 | 9.0001
I  6.000 1.422.000 106.000 29.0001
|  127.000 11
|  2.000 Ji  1.601.000 11
1975 |I11.0001
I  8.000I1.454.000 126.000 9.0001
|  70.000 1I
|  2.000 
|1
|  1.362.000
1976 |I16.0001
|  13.000I1.344.000 203.000 10.0001
|  487.000 11
|  4.000
I|  2.077.000
I
1977 |  j13.000I
|  9.000 869.000 260.000 5.0001
|  47.000 |1
1  11.000 j|  1.214.000 
j
1978 | 47.0001
|  15-000 1.294.000 211.000 25-0001
|  21.000 1|  37.000 |  1.650.000
t
1979 |  |37.0001
| 5.000 1.972.000 299.000 9.0001
j 6.000I|  47.000I|  2.375.000
j1
1980 |
I26.0001
1  18.000 2..206.000 258.000 90.0001
| 5.000 11
|  .  51.000 
1|  2.654.000
j1
1981 |
I11.0001
| *8.000 1845.000 254.000 5.0001
| 5.000 11
| 40.000 1| 1.168.000 
j1
1982 l  125.0001
I 12.000 1.311.000 227.000 7.0001
|  23.000
I1
| 31.000  
j|  1.636.000
j\
1983 1  
(first semestj2.0001
I  12.000 
1  
1364.000 78.000 NS1
1 NS
1
1| 32.000 
1  
1| 492.000 
!
I

Annex 6------r
MA
IN EXPORTING COUNTRIES: (t/1000)
U.K.
Exports
^Non-community countries 
%
Germany
Exports
=5>Non-community countries 
%
France
Exports
Non-community countries
y.
Netherlands
Exports
^Non-community countries 
%1974
362
53
14/6
2442
172
7/0
3623
132
3,6
1321
93
7/01979
1176
658
56/0
2886
345
12/0
3507
420
12/0
1211
265
21,91980
2596
1942
74,8
2994
286
9,6
3273
400
12,2
1162
272
23,41981
3839
2703
70,4
3466
419
12,1
3239 
64 7 
20,0
1247
365
29,31982
3101
2588
83,5
2941
366
12/4
3129
681
21,8
1202
412
34,3
MAIN IMPORTING COUNTRIES
Italy
Imports
Non-community countries 
%
Germany
Imports
Non-community countries
y6225
1422
22,8
1513
106
7,04762
1972
29,2
1445
299
20,77260
2206
30,4
1339
258
19,35592
845
15,1
1350
254
18,85664
1311
23,1
1303 
227 
17,4