Material Empire

Zhenjiang, are you talking about going to the south to engage in real estate? Someone who thought he had guessed what Sun Zhenjiang was thinking asked loudly.

Yeah, I heard that it is really profitable to engage in real estate in the south now. I have two buddies who went there and asked the local government to approve the money. Push it with a bulldozer. , faster than printing money. Others also echoed.

Sun Zhenjiang smiled slightly, and said: The little money in real estate is worth our buddies' concern? However, after finishing this ticket, everyone has extra money in their hands. If you want to play real estate, you can also play it. Then Although the money comes slowly, the long-term advantage is that you can play for ten or twenty years, unlike what we are playing now, which is a one-shot deal. If you miss this village, there will be no such store.”

Real estate is all small money? Everyone clicked their tongues, Zhenjiang, tell me quickly, what kind of business is it?

Sun Zhenjiang had sold enough, and then said leisurely: I got an internal message that the superiors have decided to let go of the unified purchase and sales of production materials. From January 1 next year, steel, cement, and flat glass no longer need to be planned. Index deployment, and at the same time no longer limit the planned price.

Well……

Hearing Sun Zhenjiang's words, everyone was immediately discouraged. What does this have to do with them? Some of them started their business by reselling the materials in the plan a few years ago, but the rumors have been too tight in the past two years, and this kind of business is no longer easy to do. Now that the country wants to completely cancel the planned supply of production materials, it does not have much impact on them, let alone find any business opportunities from it.

Sun Zhenjiang had expected everyone's reaction long ago. He pointed at Pittston and said, I'd like to ask Mr. Pittston to explain this question to everyone.

Let me explain this to you. Pittston spoke. His Chinese sounded a bit strange, with a strong Virginia accent, but his grammar and diction were accurate enough. He must have passed CET-6. level:

China's production means price system is seriously distorted. The planned price deviates far from the real market price, and the price on the black market is obviously high due to insufficient supply. Once the Chinese government cancels the planned control of production means, then Two situations will occur:

First, a large number of enterprises that were unable to obtain means of production will be able to obtain sufficient supply in the market. After their demand is released, the original balance between supply and demand will be broken, and there will be a serious shortage of supply.

Second, due to the existence of a shortage of supply, the price of means of production will rise substantially from the current planned price to a level sufficient to eliminate excess demand. According to our calculations, this level will be more than double the existing planned price, and slightly lower than the current black market price in the Chinese market.

Well, that's the truth. Everyone nodded in agreement, but there was no sudden feeling in their hearts. There may be some complicated economics behind what Pittston said, maybe there are some mathematical models, but for these businessmen who have done material business, they can guess it instinctively, and they don’t need skin Teston gave them science popularization.

Our plan is to eat a large amount of materials before the price of materials reaches a stable point, and then sell them when the price rises to a sufficient price. We can easily earn a large amount of money in this way. A sum of money. This time, the materials released above include steel, cement and glass, let’s not be too greedy, taking down the steel market is enough for us to play.” Sun Zhenjiang added.

Zhenjiang, aren't you talking about hoarding goods? You can play around with it, but it's not easy to say that one person can earn 1 billion yuan, right? A businessman named Ling Yiping questioned.

Ling Yiping himself has done business like hoarding, but in the past he did it in the field of consumer goods. The market prices of young industrial products soared a few days ago, so Ling Yiping used the method of buying low and selling high, and bought a lot of TV sets, video recorders and other commodities, and made some money.

He knew that hoarding was profitable but also risky. If the market price rises faster than expected, the interest loss, storage cost loss, etc. caused by stockpiling are also considerable. Especially when many people are in the business of hoarding goods, they must also consider the price drop that will occur during collective shipments. If you don’t play well, you may lose money.

Facing the opportunity when the price of production materials is released, stock up some goods appropriately and sell them when the price is high. There should be some profits, but it is sensational to say that everyone here should earn no less than 1 billion right?

Sun Zhenjiang laughed and said: Everyone thinks the same way, right? Such a good opportunity can be said to be unprecedented. If we just grab some soup, we will regret it for the rest of our lives. Tell everyone, we are here This time, we can’t just stock up. We have to take the initiative to raise the price. When the price reaches the highest point, we will suddenly withdraw. Do you understand? Let me let Mr. Pittston talk about it.

Pittston had already prepared it. He took out a stack of materials, flipped through them, and introduced to everyone:

According to the statistics of our fund research department, the current annual output of finished steel products in China is 65 million tons, plus about 5 million tons of imported steel products, the total market supply is 70 million tons, and supply and demand are roughly balanced.

If the Chinese government relaxes planning controls, the price of steel on the black market will drop from the current 5,000 yuan per ton to around 2,500 yuan, and the demand for steel in the entire market will rise to 90 million to 100 million tons. As the gap between supply and demand is as high as 20 million tons, the market price of steel will continue to rise, estimated at around 3,200 yuan, which can restore the balance between supply and demand.

The plan of our fund and Mr. Sun is to buy 10 million tons of steel at the price of 2,500 yuan. Since the market supply has decreased by 10 million tons, the contradiction between supply and demand will become more serious, so that the price of steel can rise to about 3,800 yuan in one fell swoop. At this position, we will sell steel products again, and strive to clear the inventory before the price drops to 3,500 yuan.

Calculated in this way, the gross profit we obtain through the price difference between purchase and sale in the steel market is about 10 billion to 12 billion yuan. After deducting capital costs and storage costs, and deducting a part of marketing costs, the final net profit should be 8 billion to 10 billion yuan. between yuan.

Si... Everyone in the room gasped, this move was really too big. Some of the people present here have also played with speculation, but the biggest limit is to speculate within the scope of one or two provinces, and the speculation is not such a strategic material. According to Pittston's plan, everyone wants to increase the price of the entire steel market at the national level, and then profit from it. If this vote is made, it may be a bit exaggerated for everyone to earn 1 billion yuan, but it is still possible to get a profit of 300 to 500 million yuan.

However, high profits also mean high risks. If the hype fails and the price of steel does not rise to the high level of 3,800 yuan as expected, then everyone will be caught. Hoarding steel requires a lot of funds. According to the price of 2,500 yuan per ton, hoarding 10 million tons of steel requires an investment of 25 billion yuan. The annual interest is more than one billion yuan. This cost should not be underestimated.

Zhenjiang, this plan is very attractive, but if we don't raise the price, or it takes too long, it will be a bit troublesome. Ling Yiping said.

Sun Zhenjiang said self-confidently: Yiping, don't worry, the experts of the Jiezi Fund have considered these issues. This time, the Jiezi Fund is also planning to invest 10 billion yuan. Do you think the Americans will make a loss-making business? People They are much better than us at playing empty-handed white wolves, and we just follow others to get rich, so what is there to be afraid of?

Zhenjiang, just now, Mr. Pittston said that there is a steel gap of 20 million tons. What if the state asks those steel mills to increase production? Also, the price is high, and the down there will not need so much steel. The gap is not enough. Did you fill it in? Another businessman named Guo Kaining also asked the question.

Sun Zhenjiang did not answer and gave Pittston the opportunity to explain. Pittston coughed and said to the crowd:

We have analyzed the production capacity reserves of Chinese iron and steel plants. They can increase production by up to 5 million tons, and they will not be able to produce it immediately. It will take some time for China's iron ore and coal supply to increase. It takes enough time for us to convert it into steel production capacity. In terms of imports, the foreign exchange funds that the Chinese government can currently raise are limited, which determines that its import volume cannot increase significantly.

As for demand, 80% of the demand in China's steel market is rigid demand, no matter how high the price is, they must purchase. In addition, we have not considered the new demand brought about by the development of the real estate industry in the south, because the speed of real estate development cannot be predicted at present. If the real estate industry in the south develops fast enough, the gap between supply and demand that we expect will widen further.

So that's the case. The eyes of everyone looking at Pittston began to become hot. How else can we say that the Americans are capable? They have already thought of everything we can think of, and what calculations have been made. People like us stay in China every day, and we don’t know how many steel factories there are in China, but Americans can do it. What an amazing skill.

How could it be possible to lose money by doing business with someone with such abilities?

Thinking of this, everyone's mind became active, desperately calculating the amount of funds they could raise in their minds. This is an opportunity with a profit of tens of billions of dollars. The more you invest, the greater the profit. As Sun Zhenjiang said, if you miss it this time, you will regret it for the rest of your life.