Material Empire

Since the end of last century, international iron ore has been rising. China's economy has successfully realized the transition from a planned system to a market system. It has shaken off the influence of the Asian financial crisis and gradually stepped into the fast lane. The infrastructure construction has continued to heat up, and the demand for materials such as steel, cement, and oil has increased significantly. It is not surprising that the prices of global resource products have risen, and to a certain extent, it is also reasonable.

Then, Wang Zheyi heard the news from South America that the two iron ore giants intend to adopt a price alliance to increase the price of iron ore by a large margin, and the maximum increase may reach more than 70%. A 70% increase in the price of any commodity within a year cannot be said to be a normal phenomenon, but can only be interpreted as a naked act of blackmail.

Of course, there are reasons why Vale and BHP Billiton can open their mouths like this. These two companies monopolize more than half of the world's iron ore trade, and the iron ore they produce is of high grade, far superior to China's domestic ore. The Chinese steel industry is extremely dependent on it. In other words, even if someone has already stuck your neck and wants to exploit you, you can only obey obediently.

Of course, if Chinese iron and steel companies want to resist, they have some recourse. After all, business is a matter for both buyers and sellers. If Chinese steel enterprises want to break through the blackmail of Vale and BHP Billiton, they need two factors. One is the courage to fight, and the other is solidarity and solidarity to avoid being defeated by opponents one by one.

Before that, Qin Hai did not hesitate to go out to rectify the domestic small iron and steel enterprises, spend money and effort to provide technology, tie the small iron and steel enterprises around him, and establish the National Iron and Steel Alliance, just to deal with the current situation. However, his influence is limited to the Daqin Group itself and the surrounding small iron and steel enterprises. There are other iron and steel enterprises in China that occupy half of the country, and he is still beyond his reach. If these enterprises surrendered to Vale and BHP Billiton, no matter how tough Qin Hai was, he would be powerless.

Old Song, how is your contact with Pugang, Yangang, and Lin Gang, and what is their attitude towards this international iron ore price increase? Qin Hai asked Song Hongxuan.

Song Hongxuan shook his head with a wry smile, and said, I've already asked, but they don't have any attitude, they're all waiting and watching.

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

This time, the iron ore price increase information sent back by Wang Zheyi was directly reported to the State Economic and Trade Commission, and the Economic and Trade Commission would naturally convey this information to Pudong Iron and Steel, Yangang and other enterprises. Song Hongxuan got in touch with these companies as soon as he got the news, and asked them about their strategies for dealing with this matter. However, the attitudes of these companies were very ambiguous, and they all expressed that they needed further observation to confirm.

Daqin Group is in substantial competition with these large steel mills in terms of steel production. Even though everyone has a good relationship on weekdays and often has some social activities, when it comes to the core issues of business decision-making, each company is different. To keep each other hand. Enterprises such as Puyang Iron and Steel and Yanyang Iron and Steel may not have their own considerations about the iron ore price increase, but they all chose to play dumb and wait to see what other enterprises do.

Qin Hai is also psychologically prepared for this situation. He said: Some of our companies are really experts in civil wars and outsiders in foreign wars. They all want to be the boss in the domestic market, and various competitive methods emerge in endlessly. Whenever we encounter problems, we need to unite. , When they were unanimous to the outside world, they all shrank their heads, which really made people speechless.

Song Hongxuan said: They also have their own calculations. Yangang has its own iron mines, so its dependence on imported iron ore is not so serious, and it can absorb the impact of price increases; Pudong Iron and Steel imported 20 million yuan in excess last year. tons of iron ore, it is estimated that it can last for more than half a year, so it is not in a hurry. As for Linxi Iron and Steel Company, I heard that they plan to exchange coke and India for iron ore, so they are not too vulnerable to the impact of iron ore price increases But Hongyuan Iron and Steel Company, Dongyuan Iron and Steel Company and several other companies have no good means, so they can only hold their noses and accept the price increase.

What I'm afraid of is that each has his own calculation. Qin Hai sighed, China imports 200 million tons of iron ore a year, accounting for half of the global iron ore trade volume, and it stands to reason that it has a sufficient right to speak. But Everyone is fighting on their own, and the strength cannot be pooled in one place, but in the end, they are left to be slaughtered by others, which is really annoying.

Song Hongxuan said: It's useless to think about it now, let's figure out our strategy. According to your request, we have been hoarding iron ore since the year before last, and now we have almost 50 million tons of iron ore, which is enough for us to use for a while. In addition to the rectification of small iron and steel, hundreds of small iron and steel factories across the country can basically advance and retreat with us. If we want to negotiate with Vale, we can be regarded as some negotiating leverage. However, if they are determined to raise prices, Waiting for us to run out of stock, we are also very uncomfortable.

Qin Haidao: This kind of thing depends on who can persist until the end. We are under pressure, and Vale and BHP Billiton are not without pressure. They are engaged in the mining industry. If the ore cannot be sold, they are also in difficulty. We must give them a The feeling is that we will never give in. If they realize that we can not rely on their ore, then they will panic and finally bow to us.

You're right. Song Hongxuan nodded and said, We have spent so much effort on the layout, and it's time to test the effect. How about it, how about we divide the work?

Qin Hai smiled and said: It's still the old rule. You stay at home and leave it to me to run errands outside. I'll go to the capital first to determine a big principle with the Economic and Trade Committee, and then go to Brazil to meet Vale for a while. Go argue with them.

Don't worry, you don't have to worry about family matters. Song Hongxuan said confidently.

After many years of cooperation, Qin Hai and Song Hongxuan have a deep tacit understanding. They don't need to talk too much to each other, but they know how to cooperate. Qin Hai left Anhe in a hurry and rushed to the capital with Heizi. Song Hongxuan was not idle either. He urgently summoned the directors of the various iron and steel plants under the group to learn about their iron ore inventory and orders, and asked them to enforce orders and strictly implement the group's decisions. After arranging the production tasks of the group, Song Hongxuan contacted the persons in charge of various iron and steel factories in the Steel League and reminded them to pay attention to keeping a good stock of raw materials in order to cope with the possible increase in iron ore prices.

After Qin Hai arrived in the capital, without delay, he went directly to the Economic and Trade Commission and found Cui Hongchun, the deputy director.

I knew you would come. Cui Hongchun did not express any surprise at Qin Hai's visit. He asked his secretary to pour Qin Hai a cup of tea, then sat down on the sofa with Qin Hai, and said, You are here for the iron ore What happened?

Director Cui is wise. Qin Hai flattered him.

What kind of wise am I? Cui Hongchun curled his lips. He knew that Qin Hai's words were just a joke, so he didn't deliberately correct him. With regard to the soaring price of iron ore, your prediction has really come true. Last time I met Mr. Wang Hongsheng, he praised you for your vision.”

Qin Haidao: In fact, this is a problem that everyone can see. It's just whether they take it to heart. Last year, our country imported 200 million tons of iron ore, and this year it may reach 250 million tons. If the price of iron ore per ton 70% of the price, we will spend about 8 billion US dollars more, this is not a small amount, isn't it worthy of attention?

Hearing Qin Hai's calculation, the relaxed expression on Cui Hongchun's face disappeared instantly. He has also calculated this account, and he also feels very distressed. In fact, even if Qin Hai didn't come to him, he would contact Qin Hai in a few days to discuss strategies to deal with the price increase of iron ore. It is normal for the price of resource products to rise, but if we spend an extra 8 billion yuan a year, no one will feel that it is a disadvantage. The Economic and Trade Commission has held several expert seminars on this issue these days, and has also learned about the situation from subordinate steel companies, but there is no good solution. When encountering such difficult things, the person Cui Hongchun hopes to see most is Qin Hai, because he believes that Qin Hai is a person who can create miracles.

Xiao Qin, since you have seen this a long time ago, you must have a mature set of ideas, right? Tell me quickly, and let me listen. Cui Hongchun said bluntly.

Qin Haidao: To tell the truth, Uncle Cui, our group has indeed made some preparations for this situation, including last year when I took the lead in rectifying the small iron and steel industry, and I also have the intention of taking precautions. If the Economic and Trade Commission can trust me, can the iron ore negotiation Give me the task, and I will work hard to keep the price increase within 20%.

The annual price increase of iron ore by 20% is an acceptable range in China and a relatively reasonable price increase range. If Vale and BHP Billiton do not jointly raise prices, then they should control the price within this range, which is a suitable price for both supply and demand.

Business cooperation is about win-win, and the thing that one party gains while the other party suffers is doomed to not last long. Qin Hai intends to negotiate with Vale, so naturally he will not offer a price that is completely unacceptable to the other party, otherwise the negotiation will fail. 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 punch.

I have been busy for two days, and I have handed in the materials, waiting for feedback from the client. Tomorrow is the end of the month. If you have a monthly pass in your hand, you can vote for it. If you release it, you will grow hair... Then go to the next chapter.