HEARTH AND ELECTRIC FURNACES FOR THEIR CRUDE STEELMAKING AND ARE ENTIRELY RELIANT UPON THE SUPPLIES OF SCRAP FOR THEIR FERROUS RAW MATERIAL ;
WHEREAS STABILITY OF THE SUPPLY OF SCRAP AND MARKET CONDITIONS ARE ESSENTIAL FOR THE PARTIES TO ENABLE THEM TO MAINTAIN A CONTINUOUS AND EFFICIENT PRODUCTION OF CRUDE STEEL ;
WHEREAS THIS IS PARTICULARLY IMPORTANT FOR THE EIGHT PARTIES WHO ALSO PRODUCE SPECIAL STEEL AND WHO ARE RELIANT UPON PURCHASES OF HIGH GRADE LOW RESIDUAL SCRAP FOR WHICH DEMAND IS HIGHER IN RELATION TO SUPPLY THAN IS THE CASE FOR LOWER GRADES OF SCRAP ;
WHEREAS THE PARTICULAR SITUATION IN THE BRITISH SCRAP MARKET HAS TO BE TAKEN INTO CONSIDERATION WHERE ONE UNDERTAKING USES 80 % OF THE SUPPLIES OF SCRAP AND HAS , THEREFORE , A DOMINANT POSITION AS A BUYER ON THE BRITISH SCRAP MARKET ; WHEREAS FOR MANY YEARS THE DISTRIBUTION OF SCRAP IN THE UK HAS BEEN STABILIZED BY MEANS OF A TRIPARTITE SCRAP AGREEMENT BETWEEN THE BRITSH STEEL CORPORATION ( BSC ) , THE BRITISH INDEPENDANT STEEL PRODUCERS' ASSOCIATION ( BISPA ) AND THE BRITISH SCRAP FEDERATION ; WHEREAS THIS AGREEMENT HAS BEEN PUT TO AN END ON 1 JULY 1973 BY THE PARTIES CONCERNED AS NOT BEING COMPATIBLE WITH THE DISPOSITIONS OF ARTICLE 65 ;
WHEREAS THE SCRAP MARKET IS A HIGHLY SPECULATIVE MARKET WHICH SHOWS GREAT PRICE FLUCTUATIONS DEPENDENT ON ECONOMIC ACTIVITY ;
WHEREAS THE PROPOSED AGREEMENT AND IN PARTICULAR THE JOINT BUYING AGENCY SSL WILL PROVIDE A COLLECTIVE AND MORE EFFECTIVE MEANS OF INTERVENTION IN THE SCRAP MARKET TO ENSURE THE STABILITY OF SUPPLY AND PRICE FOR THE PARTIES , ESPECIALLY IN TIMES OF SHORTAGE ; WHEREAS THE AGREEMENT CAN OBVIATE THE NEED FOR THE INDIVIDUAL PARTIES TO CARRY UNDULY HIGH STOCKS OF SCRAP IN ORDER TO ENSURE A CONSISTENT SUPPLY THEREOF ;
WHEREAS UNDER THE ABOVEMENTIONED CIRCUMSTANCES THE JOINT BUYING AGREEMENT IS TO BE CONSIDERED AS CONTRIBUTING TO A SUBSTANTIAL IMPROVEMENT IN THE PRODUCTION OF CRUDE STEEL AND ITS DERIVATIVES FOR THE PARTIES INVOLVED ;
10 . WHEREAS THE AGREEMENT IS ESSENTIAL TO ACHIEVE THE REQUIRED RESULT - AN IMPROVEMENT IN SUPPLIES OF FERROUS SCRAP - TAKING INTO CONSIDERATION THE SIZE OF THE PARTIES AND THE PARTICULAR STRUCTURE OF THE BRITISH SCRAP MARKET ;
WHEREAS THE AGREEMENT IS NOT MORE RESTRICTIVE THAN IS NECESSARY FOR THE ACHIEVEMENT OF ITS PURPOSE AS THE AGREEMENT CONFINES THE JOINT BUYING ACTIVITY TO TRANSACTIONS WHICH COULD NOT BE MORE SATISFACTORILY ACHIEVED BY THE PARTIES ACTING INDIVIDUALLY , THE PARTIES BEING FREE TO PARTICIPATE IN THE JOINT PURCHASES AND THE POWER OF SSL BEING ACCORDINGLY LIMITED ;
WHEREAS THE STIPULATED POSSIBILITY TO EXTEND THE AGREEMENT TO " OTHER STEELMAKING RAW MATERIALS " IS NOT MORE RESTRICTIVE THAN NECESSARY AS IT CONCERNS PARTICULARLY THE EVENTUAL SUPPLY OF A SUBSTITUTE MATERIAL FOR FERROUS SCRAP , NAMELY PRE-REDUCED ORE , JOINT STUDIES OF THE PRODUCTION AND SUPPLY OF WHICH ARE BEING UNDERTAKEN BY CERTAIN OF THE PARTIES ; WHEREAS FOR THE PARTIES THE CONDITIONS OF SUPPLY OF