European ferrous scrap merchants have been thrown into turmoil by ArcelorMittal's decision to impose stricter conditions on its ferrous scrap suppliers. Merchants across Western and Central Europe were sent letters by ArcelorMittal's purchasing department in late July warning them that penalties would be imposed on deliveries of shredded scrap containing high levels of copper. In the past month merchants have experienced problems over scrap deliveries sent to ArcelorMittal steelworks, MB understands. "ArcelorMittal almost overnight tightened its quality requirements and specifications. We started to get questions about the scrap we were sending them, but we were not willing to accept their terms. We spoke with [ArcelorMittal] and we have no problem now," said a major European scrap merchant. "I think the same is true for several major merchants in Europe which are big enough to turn to ArcelorMittal and refuse to sell to them under those conditions because they have enough other customers and access to export markets. "But I think the effect on smaller and mid-sized merchants has been greater. Many of them would have to accept the penalties because they have no other choice, and fear getting blacklisted by ArcelorMittal," he added.
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