BIR files complaint to EC regarding the cancellation of scrap orders by leading mills

The Bureau of International Recycling (BIR) has recently sent an official letter to the European Commission (EC) to express serious concern regarding the commercial behavior of many buyers of secondary raw materials in the EU and in other countries worldwide.
 
BIR stated in its notice that many buyers of secondary raw materials are failing to pay for shipments, renege on open contracts or seek extraordinary discounts from the contracted price for materials even after the goods have reached the ports in the country of destination, as a result of the current financial and economic turmoil that is affecting all sectors including the production and manufacturing industries.
 
According to BIR, a major European steelmaker with a market share of 34 percent in Europe has recently sent a letter to all its suppliers, stating, "Because of the current situation in the steel market and of the subsequent scrap consumption, we are sorry that we have to immediately renege on all contracts which were concluded before the month of September and for which the materials have not been delivered yet."
 
However, BIR stressed that this steelmaker also just announced a record profit for Q3 2008, and, therefore, BIR has asked for an official response of the competent directorates within the EC, and intends to discuss the matter at world level within the World Trade Organization (WTO).