Material Empire - v2 Chapter 749

Since the end of the last century, international iron ore has been rising. www.geiliwx.com China’s economy has successfully transformed from a planned system to a market system, getting rid of the impact of the Asian financial crisis, and gradually entering the fast lane. The infrastructure has been heating up, and the demand for steel, cement, oil and other materials has grown significantly It is inevitable that the prices of global resource products will rise, which is not unexpected. To a certain extent, it is also reasonable.

However, the news from Wang Zheyi from South America was that the two major iron ore giants intentionally adopted the method of price alliance to greatly increase the price of iron ore. The largest increase is likely to reach more than 70%. A 70% increase in the price of any kind of commodity within a year cannot be said to be a normal phenomenon, and can only be interpreted as a naked blackmail.

Vale and BHP Billiton could have such big lion openings, of course, for a reason. These two companies have monopolized more than half of the world’s iron ore trade, and the iron ore produced by them is of high quality, far superior to China’s domestic ore, and the Chinese steel industry is extremely dependent on it. In other words, even if people have stuck your neck and want to exploit you, you can only obey it obediently.

Of course, if Chinese steel companies want to resist, there is no way out. After all, doing business is a business for both buyers and sellers. One party has done too much and really forced the other party into a situation where there is no way out. This business is also impossible. If Chinese steel companies want to break the blackwater valley and BHP Billiton’s blackmail, they need two reasons? One is to have the courage to dare to fight, and the other is to be sincere and united to avoid being defeated by opponents.

In the past, Qin Hai did not hesitate to personally go to rectify domestic small steel, paid for the power and technology, tied small steel companies around himself, and established the National Iron and Steel Alliance to precisely respond to the situation at hand. but. His influence is limited to the Daqin Group and its surrounding small steel companies. There are other steel companies in China that occupy half of the country. If these companies surrender to Vale and BHP Billiton, then Qin Hai will be tough again.

“Lao Song, how are you in contact with Pugang, Yangang and Lingang, and their attitude towards this international iron ore price increase?” Qin Hai asked Song Hongxuan.

Song Hongxuan smiled and shook his head. Said: “I’ve asked them all. They don’t have any attitude. They’re all watching.”

Pujiang Iron and Steel Company, Yanning Iron and Steel Company and Linxi Iron and Steel Company are all large state-owned iron and steel companies with annual output of more than 10 million tons. They have considerable say in the domestic steel market and are also large iron ore importers. As early as a few years ago, Song Hongxuan and the leaders of these steel companies established a close public-private relationship, often exchanged technical information with each other, and had one or two regular meetings almost every year.

This time Wang Zheyi passed back the iron ore price increase information. It is directly submitted to the State Economic and Trade Commission, and the Economic and Trade Commission will naturally convey this information to Pugang and Yangang. Song Hongxuan got in touch with these companies as soon as he got the news and asked them how to deal with the matter. However, the attitudes of these companies were very high, and they said that they need to observe further to determine.

The Daqin Group has a substantial competitive relationship with these large steel mills in terms of iron and steel production. Don’t look at everyone’s good relations on weekdays, and there are often some friendship activities. But when it comes to the core issues of business decision-making, each company must keep its own hands. Pu Steel and Yan Steel. There is not necessarily no consideration for the price of iron ore, but they have all chosen to play silly and wait to see how other companies do it.

Qin Hai was also mentally prepared for this situation. He said: “We have some companies that are really civil war insiders and foreign war laymen. We want to be the boss in the domestic market, and various competition methods are emerging one after another. When we meet, we need to unite. When they are unanimous, they all shrink their heads, which makes people speechless. “

Song Hongxuan said: “They also have their own abacus. Yangang has its own iron ore mine, so its dependence on imported iron ore is not so serious, and it can absorb the impact of price increases; Pugang imported over 20 million last year. Tons of iron ore are estimated to be able to support more than half a year. So don’t worry. As for Linxi Iron and Steel Company, I heard that they are planning to use coke and India for iron ore, so it is not easy to be affected by the rise in iron ore prices. “However, several companies such as Hongyuan Iron and Steel Co., Ltd. and Dongyuan Iron and Steel Co., Ltd. have no good means but to accept the price increase by holding their noses.”

“What I am afraid of is this kind of abacus.” Qin Hai sighed. “China imports 200 million tons of iron ore a year, which accounts for half of the global iron ore trade. It stands to reason that it has a full say. But Everyone fights against each other. The strength cannot be used in one place. In the end, it is a situation where people can be slaughtered.

Song Hongxuan said: “Now it’s useless to think about it. Let’s figure out our strategy. According to your requirements, we have hoarded iron ore since the beginning of the year. Now we have stocked about 50 million tons, which is enough for us. With the improvement of small steel, hundreds of small steel plants across the country can basically move forward with us. If we want to negotiate with Vale, we also have some bargaining weights. However, if they are determined to increase prices, We’ve been waiting for us to run out of inventory, and we’re uncomfortable. “

Qin Haidao: “This kind of thing is to see who can persist until the end, we have pressure, and Vale and BHP Billiton are not without pressure. They are engaged in mining, ore cannot be sold, and they are also difficult. We must give them a It feels like that we will never give in. If they realize that we can not rely on their ore, then they will panic and eventually can only bow their heads to us. “

“You’re right.” Song Hongxuan nodded. “We have spent so much effort to make the layout, and it’s time to check the effect. How about, how do we divide our work?”

Qin Hai laughed: “It’s still the old rule, you keep the house and run errands out to me. I’ll go to the capital and determine a big principle with the Economic and Trade Commission, and then go to Brazil. There will be Vale for a while. Fight with them. “

“You can rest assured, you don’t have to worry about things at home.” Song Hongxuan said confidently.

Years of cooperation have allowed Qin Hai and Song Hongxuan to have a deep understanding. They don’t need to talk too much to each other to know how to cooperate. Qin Hai left Anhe in a hurry and ran to the capital with the sunspots. Song Hongxuan was not idle. He convened the directors of various steel mills under the group to ask them about the iron ore inventory and orders, and asked them to prohibit and strictly enforce the group’s decisions. After finishing the production tasks of the Group, Song Hongxuan contacted the heads of various steel mills in the “Steel League” and reminded them to pay attention to the stock of raw materials in order to deal with the possible rise in iron ore prices.

After Qin Hai arrived in Beijing, he went directly to the Economic and Trade Commission without delay and found Deputy Director Cui Hongchun.

“I knew you would come.” Cui Hongchun was not surprised by Qin Hai’s visit. He asked the secretary to pour a cup of tea for Qin Hai, and then accompanied Qin Hai to sit down on the sofa and said, “You are for iron ore. Did things come? “

“Director Cui Yingming.” Qin Haishun patted a horse.

“What kind of wisdom is this?” Cui Hongchun gave a pout. He knew that Qin Hai’s remark was just a joke, so he didn’t deliberately correct it. Instead, he said, “At least five years ago, you talked about guarding against international affairs. The problem of soaring iron ore prices is now fulfilled. Last time I met the old director Wang Hongsheng, he also boasted that you have a vision for the problem. “

Qin Haidao: “In fact, this is a problem that everyone can see, but is it right? Do n’t worry about it. Last year, our country imported 200 million tons of iron ore, and this year may reach 250 million tons. If each ton of iron ore rises, The price is 70%, and we’re going to spend almost $ 8 billion more. This is not a small amount, isn’t it worthy of attention? “

After hearing Qin Hai’s account, Cui Hongchun’s relaxed expression on the face suddenly disappeared. He also calculated this account and felt very distressed. In fact, even if Qin Hai did not come to him, he would contact Qin Hai in a few days to discuss strategies to deal with the rise in iron ore prices. The rise in the prices of resource products is normal, but more than 8 billion yuan has been spent a year, which is a loss for anyone. The Economic and Trade Commission has held several expert seminars on this issue these days, and has also learned about the situation to its subordinate iron and steel enterprises, but there is no good solution. When encountering such difficult things, the person Cui Hongchun would most like to see is Qin Hai, because he believes that Qin Hai is a person who can create miracles.

“Xiao Qin, since you have seen this already, then you must have a mature set of ideas? Speak it out and let me hear it.” Cui Hongchun said politely.

Qin Haidao: “Without concealing Cui, our group did make some preparations for this situation, including last year I took the lead in rectifying Xiaogang, and also had a plan in advance ~ www.mtlnovel.com ~ If the Economic and Trade Commission can trust me, can I Give me the task of negotiating iron ore, and I will try to keep the price increase within 20%. “

The 20% annual increase in iron ore is a domestically acceptable range and a reasonable increase. If Vale and BHP Billiton do not increase prices in a joint way, then they should control the price within this range, which is a price that is suitable for both supply and demand.

Commercial cooperation is about a win-win situation. Things that benefit one side and lose the other side are doomed to last. Qin Hai intends to negotiate with Vale, and he will certainly not offer a price that is completely unacceptable to the other party, otherwise he will not be able to negotiate. But if the other party is unwilling to accept the 20% increase and insists on increasing the price by 70%, Qin Hai will use his own combination of punches. (To be continued …)

ps: After two days of busy work, I have handed in the materials and waited for the feedback from the client. Tomorrow is the end of the month. If you have a monthly ticket in your hand, you will vote for it, and then you will grow hair … Then go to the next chapter. WWW.GEILIWX.COM Happy reading every day