Material Empire

Chapter 109

Compared with the steel products on the Japanese market, the prices of Qin Hai’s steel products are astonishingly low. There are several reasons for this:

One is the different sources of raw materials. Generally, steel factories use special alloy materials to smelt alloy steel, which are relatively expensive. However, Qin Hai used alloy steel scrap, which was equivalent to obtaining alloy materials at the price of scrap steel, which greatly saved the cost.

The key to smelting alloy steel with alloy scrap is to accurately calculate the ratio of various scraps, which involves a huge amount of work. Ordinary steel mills neither have such talents, nor are they worth doing. But Qin Hai is different. He hired a group of engineering students to do such calculations. The students regard this work as the content of professional practice. The labor cost Qin Hai actually spent is very low.

The second reason is also related to labor, that is, the wages of steelmaking workers in Japan are very high, while the wages of Chinese workers are only a fraction of that in Japan. The iron and steel industry is a capital- and labor-intensive industry, and labor costs account for a considerable proportion of steel costs. In this regard, Qin Hai has a cost advantage.

The third aspect is the value of knowledge. Special alloy steel is so expensive, a considerable part of which is the value of technology. The development of a steel formula by a steel plant requires a large amount of investment, which must be allocated to the final product. After mastering the special formula, some steel mills adopt the oil-skimming pricing method in order to earn excess profits, which also leads to inflated prices of special steel products.

These alloy steel formulas proposed by Qin Hai come from his own knowledge, or in other words, from the cheating of the traversers, and there is almost no cost. In this regard, he is sure to win the price war with other steel mills.

With these three reasons, it is not difficult to understand why Qin Hai can provide special alloy steel at a very low cost. In Qin Hai's plan, these alloy steels will bring him the real first pot of gold.

Are you planning to provide special alloy steel to Japan? Kunio Kishida was shocked by Qin Hai's plan. In the 1980s, Japan was the country with the highest steel output in the world and the country with the largest steel export. Even if some special steel products need to be imported, the source of Japan's imports is from developed countries such as Europe and the United States. How can it be possible to import from China, which is technologically backward?

However, the situation in front of him cannot be questioned by Kishida Kunio. The military shovel in his hand, roughly speaking, has indeed reached the level of some ultra-high-strength alloy steel in the Japanese market, and Qin Hai said Conclusively stated that the price can be reduced to half of the Japanese market, which means that the agent can at least get more than 30% of the sales profit.

It is a consensus in the industry that the profits of special steel products are high, but these high profits have always belonged to the steel mills, and only a small part is transferred to the agents. If Qin Hai's steel plant is willing to give up such a high profit, then why doesn't Fukuoka Club act as an agent?

This is just like what Qin Hai said to Jun Nakamura a few months ago: Why not do something that is profitable?

Mr. Kishida, don't worry, I still have some goods here, and I would like to ask you to appraise them.

Before Kunio Kishida could recall, Qin Hai spoke again. He unhurriedly removed several pieces of steel from the trolley pushed by Miao Lei, and placed them on the ground in front of Kunio Kishida. Kunio Kishida involuntarily squatted down and carefully observed these steel materials, his expression became a little strange.

This is high wear-resistant steel. Under strong impact, the surface hardness can be increased from 200HBW to 500HBW, and the depth of the hardened layer can reach 10 mm, while the core still maintains the austenite structure...

This is heat-resistant steel. The limit time for 1% creep at 700 degrees Celsius is no less than 8,000 hours...

This is corrosion-resistant steel...

This is……

Qin Hai introduced the properties of various steel samples to Kunio Kishida with all his treasures. These samples were all smelted by the workers in his busy schedule a few days ago. After inspection, these samples have reached the standards of some high-grade alloy steels in the world, but the cost is only a few percent of others.

In Qin Hai's mind, there are many steel formulas and corresponding heat treatment processes. Under the guidance of these knowledge, he only needs to do a little experimentation to produce special steel that basically meets the requirements. It should be noted that the development of iron and steel smelting technology is very rapid. Some technologies that are very common in later generations are enough to make people feel amazing in the mid-1980s.

Are these smelted in your steel factory? Kunio Kishida couldn't believe it.

The price of special steel is more than ten times or even dozens of times that of ordinary steel, but at the same time, the demand is much smaller than that of ordinary steel. For some special steel, the global demand is only a dozen tons a year. Large-scale steel plants generally have no time to care about this kind of niche steel, and most of them are provided by small steel plants that specialize in smelting special steel.

In Japan and other western countries, there are many small businesses that make a living by smelting one or two types of special steel, and Kunio Kishida has seen many of them. However, like Pingyuan Iron and Steel Works, using an outdated electric furnace from the 1960s, it can smelt seven or eight types of special steel at the same time, and the performance of each special steel is comparable to similar products on the market. This is rare. situation.

When Qin Hai introduced these steel types, he reported some key indicators to Kunio Kishida. Based on Kunio Kishida's understanding of Qin Hai, he knew that the indicators Qin Hai mentioned should not be exaggerated. If the performance of these materials can really reach the level that Qin Hai said, then they will definitely be able to find a market in the Japanese market.

Considering the level of Qin Hai's previous quotation... Kunio Kishida's heart couldn't help but beat a little. He had a premonition that his gains in this dilapidated steel factory might be greater than what he gained in the Qingfeng factory in the morning.

How is it, Mr. Kishida, are you interested in our steel plant now? Qin Hai expected Kunio Kishida's reaction. In fact, he himself knows that it is very abnormal for so many special steels with excellent performance to appear in such a small steel factory at the same time, but given his current situation, how can he stand out if he does not do some unusual things?

Kishida Kunio is worthy of being a veteran in shopping malls, after a short period of astonishment, he regained his senses. He asked, Mr. Qin, what are your sales prices for these steel products?

To be honest, I don't know the price of similar products in the Japanese market, which is why I want to cooperate with Mr. Kishida. I can promise one thing, that is, no matter what the price of similar products in the Japanese market is, I can press 50% of the price is supplied to Fukuoka Club. Qin Hai said.

Kishida Kunio burst out laughing. Qin Hai's way of quoting is really absurd, but he is also extremely confident. It's ridiculous because he doesn't have a benchmark price of his own, and the market price is completely halved. In this market, apart from those who deliberately smash the market, who else can make such an offer? He is confident because he can be sure that his cost must be below 50% of the market price, so no matter what the actual market price is, he will be able to make a steady profit if he sells at 50% of the price.

Mr. Qin, I like your frankness very much. Kishida Kunio said, Our club has business relations with many Japanese manufacturing companies. If your steel performance indicators are qualified and the price is attractive, I think they will Interested in.

Then let's make a deal like this, please ask Mr. Kishida to find out about the sales for us. Qin Hai said.

It is a great honor to work with a young talent like Mr. Qin who has both technical and business acumen, said Kunio Kishida. There is no need to turn around any corners in the dialogue between smart people. It is actually more effective to communicate straightforwardly for things that are beneficial to everyone.

Leizi, pack up these steel samples and the inspection report we made, and ask Mr. Kishida to take them with him when he leaves. Qin Hai turned to Miao Lei and instructed.

Understood! Miao Lei replied loudly, his heart filled with ecstasy. Regarding the sale of special steel, Qin Hai once discussed with several of them. According to Qin Hai, such special steel can neither find a buyer nor sell at a high price in China. Can go to open up the international market.

When Qin Hai said this, Miao Lei, Ning Mo, and Yu Haitao were all skeptical. They felt that developing the international market was too far away from them. Foreigners were so advanced in technology, and they would buy them to use a few laggards. Is it steel made in an electric furnace?

Now, Miao Lei is completely convinced by the scene in front of him. Qin Hai has the ability to invite foreign guests to the steel factory, and with a few words, let the foreign guests agree to go to Japan to help sell their steel products. The ability to turn a stone into gold.

After talking about business matters, Qin Hai accompanied Kishida Kunio to other places in the steel plant, and looked at the abandoned blast furnace for ironmaking and the two hills of waste ore and slag behind the blast furnace. Kishida Kunio was quite interested in that slag mountain. He picked up a piece of slag from the ground and looked at the sun for a long time, but he didn't know what he was thinking about. Qin Hai followed him and asked, Why, Mr. Kishida, do you also have research on slag?

Oh, no, I just took a look. Kunio Kishida said. After that, he threw out the slag in his hand, clapped his hands again, and said, Okay, we've finished talking about business matters, and now I'm formally requesting to visit your family, and I hope Mr. Qin can agree.

You are very welcome. Qin Hai said, My father is waiting for your visit at home, and my sister has already prepared a table of meals just to entertain you.

Oh, thank you so much. Kishida Kunio said exaggeratedly, I am very eager to taste Chinese home-cooked meals now.

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