Material Empire

Qin Hai would not be surprised by any of Honggang's performances. There are so many iron and steel companies in the country, some are willing to take care of the overall situation, and some are only looking at the interests of their own small group. Qin Hai can't demand others based on his own principles. He visited these enterprises just to find out the bottom line of everyone so as to determine his own strategy when negotiating with foreign businessmen.

Hearing Pang Yongfu pretending to be stupid, Qin Hai smiled slightly and said, Mr. Pang is indeed wise. I came to Honggang today to negotiate iron ore. I want to hear Honggang's attitude towards this matter.

What's the attitude of the central government? Pang Yongfu didn't answer Qin Hai's question, but asked rhetorically.

Qin Haidao: The attitude of the central government is very clear. I hope that the iron and steel enterprises across the country can unite as one, with one heart and one mind, and use one voice to negotiate with Vale and BHP Billiton, so as to obtain the best results for China's iron and steel industry.

One heart and one mind, this sentence really speaks to our hearts. Pang Yongfu said, Our thinking is completely consistent with the central government, that is, we must work together with our domestic counterparts to overcome difficulties.

That's great. Qin Hai said with a faint smile. He understood that what Pang Yongfu said was just an opening statement, and more important words were yet to come.

But... Pang Yongfu did not expect a magical turn. He sighed and said, We want to be of the same heart and mind with other colleagues, but they don't think so. Our Hongyuan Iron and Steel Company is in the domestic steel industry. It can only be regarded as the second echelon, how can we dare to expect to be of one heart and one mind with the first echelon.

What does Mr. Pang mean? Can you explain it more clearly? Qin Hai asked.

Pang Yongfu said: The situation in front of us is very clear. Vale and BHP Billiton intend to greatly increase the price of iron ore. For Honggang, it is a noose for us. Die, if we don’t accept such a price, our raw materials will be cut short, has Mr. Qin considered this issue for us?”

Qin Haidao: To tell you the truth, Mr. Pang, our strategy is to stick to the bottom price that China can accept, that is, the price increase cannot exceed 20%. If Vale and BHP Billiton insist on a higher quotation, we will stop our cooperation with them. President Pang’s concern is not unreasonable, but you have to think about it, if we persist in not cooperating with them, they will also be unable to withstand it, this is actually a test of who can persist until the end.”

We can't hold on. Pang Yongfu said decisively.

Why? Qin Hai asked.

Pang Yongfu said: I know you Daqin Group can persist because you have 50 million tons of ore reserves in your hands. Yangang and Puyang Iron and Steel are also fine. They either have their own mines or have sufficient reserves, and they can persist. For a period of time. Our Red Steel has only one month of raw material inventory left. If Vale wants to raise prices now, we must accept it, otherwise we have to stop working. Mr. Qin just said that everyone should be of one heart and one mind. I want to ask, Yan Can Ganggang and Puyang Iron and Steel Group work together with us and give us a share of their ore?

I'm afraid this can't be done. Qin Hai shook his head and said, Mr. Pang, the Economic and Trade Commission has issued a warning to all steel companies as early as a year ago, asking everyone to increase their inventory as much as possible to avoid being affected. The impact of international ore price fluctuations. The reserves of our Daqin Group have also been accumulated with a large amount of working capital. Honggang itself did not build reserves in advance, so how can we blame others now?

We also want to build reserves, but how can we have money? Pang Yongfu said, Our profits have been taken away by the province. By the way, some of them are still related to you, Mr. Qin, that is, they were moved to Hongyuan Automobile. The company has started to develop electric vehicles. We have been reporting to the province since the beginning of last year, requesting that a part of the profits be reserved for ore reserves, but the province has not approved it. What can we do?

Pang Yongfu's answer was divided into three points as true and seven points as false. It is true that Hongyuan Province embezzled part of the profits of Hongyuan Iron and Steel Company, but the province did not take all the profits, but left a large part for Honggang. Pang Yongfu used this part of the funds for real estate development, and built several local buildings, which are currently being sold, but the funds have not been recovered. This is the real reason why Honggang has no ore reserves.

Qin Hai came to visit Honggang, of course he also knew about Honggang's situation beforehand. Facing Pang Yongfu's lies, Qin Hai did not expose them, but said to himself: Honggang's difficulties also exist in other steel companies. Now our country is no longer a planning system, and it is impossible to use administrative orders to control enterprises. The inter-level adjustment of materials. Enterprises such as Yangang and Puyang Iron and Steel have some ore reserves. If Honggang is willing to negotiate with them and obtain some ore from them at market prices, the central government will not interfere. But let the central government directly It may not be appropriate to come forward to coordinate.

Yeah, since that's the case, what's the point of being of one heart and one mind? Pang Yongfu shrugged and said.

Qin Haidao: Mr. Pang is biased when he thinks this way. The iron ore negotiation is not only beneficial to some enterprises, but all enterprises can benefit from it. If the negotiation can achieve our expected goal, then the red Steel's iron ore purchase price can also be maintained at the current level, instead of being forced to accept a 70% increase. For such a thing, Honggang should actively support it, and there is no reason to bargain with the working group.

Then during the negotiation period, our company can only stop production and wait for materials? Pang Yongfu asked.

Qin Haidao: This is what I want to discuss with Mr. Pang. Apart from Vale and BHP Billiton, is there any other channel for Honggang to obtain iron ore? Also, Honggang currently produces about 1 million tons a year Before the iron ore negotiations are settled, can the export of steel be stopped first, which can also reduce the pressure on some iron ore demand. The Economic and Trade Commission is coordinating with the Ministry of Foreign Trade and Economic Cooperation to prepare to import some iron ore from Russia and other countries To alleviate the shortage of raw materials for domestic steelmaking, is Honggang interested in increasing the proportion of short-process steelmaking to make up for the gap in long-term processes?

For us Honggang, these are just a drop in the bucket and cannot solve the fundamental problem. Pang Yongfu said.

Then what does Mr. Pang mean? Does he not intend to cooperate with the work arrangement of the Economic and Trade Commission? Qin Hai kicked the ball to Pang Yongfu's feet.

Of course not. Pang Yongfu said, Qin Hai put a big hat on him, and he had to clarify. As the boss of a large iron and steel company, how could he publicly claim that he would not cooperate with the work of the State Economic and Trade Commission. There are many things that can be done but absolutely cannot be said. Although he has already planned to make peace with Vale alone, when Qin Hai asked, he had to firmly deny it.

We have received the notice from the Economic and Trade Commission, and the company's party group has made a resolution to resolutely implement the spirit of the Economic and Trade Commission's documents, and actively cooperate with the iron ore negotiations, that is, to cooperate with Mr. Qin in your work. Pang Yongfu smiled. The meat said to Qin Hai without smiling.

Qin Hai smiled lightly: I don't dare to be that, I am serving everyone.

However, our difficulties also exist objectively. If we are forced to stop production due to the interruption of the supply of raw materials, the economic losses suffered will be huge. My old Pang cannot bear this responsibility, nor can our entire company's leadership team. Take this responsibility. Therefore, we very much hope that the country can understand our difficulties and provide us with a way out to solve the problem. Pang Yongfu continued.

Qin Hai gave Yu Yong a glance, and Yu Yong quickly pointed to the notebook in front of him and nodded. They did this in front of all the leaders of Honggang, which meant to tell them that Yu Yong had already recorded what Pang Yongfu said, and hoped that they would not regret it in the future. Of course, the content recorded by Yu Yong alone is not enough to be used as evidence in court in the future, it only represents a gentleman's agreement.

I already understand what Mr. Pang means. Qin Hai said, The iron ore negotiation is a major event related to the entire Chinese steel industry. Work together to thwart the blackmail of international giants. Mr. Pang promised just now that he will never violate the requirements of the Economic and Trade Commission. This attitude is worth learning for all companies. I hope that Mr. Pang can stick to this promise in the future negotiation process.

As for the objective difficulties of Honggang, I have already noted them down and will truthfully report them to the leaders of the Economic and Trade Committee. Mr. Pang, please rest assured that the Economic and Trade Commission will definitely take effective measures to help companies tide over the temporary difficulties. In addition, the leaders of the Economic and Trade Committee have another sentence, that is, they hope that all enterprises will have the determination to fight back and not give up halfway. As the saying goes, short-term pain is worse than long-term hatred. If you can't bear temporary difficulties, you will be controlled by others for a long time in the future, and that feeling is even more uncomfortable.

Boss Qin's words are really reasonable. We will organize in-depth study later. Pang Yongfu praised insincerely.

Qin Hai smiled and said, Mr. Pang, you are being polite. I, Xiao Qin, am just a junior in the steel industry. Today, Xiao Fu, Xiao Fu, and I are here to learn from Mr. Pang and other seniors.

Hahahaha, Mr. Qin is really too modest. Pang Yongfu commented with a smile.

Yes, yes, yes, Mr. Qin is too modest, this is really a virtue. Xiang Pengda also echoed.

Mr. Pang, Mr. Qin, the small cafeteria is ready. How about we move to the small cafeteria and chat while eating? Pang Yongfu's secretary Hu Xiaoshuo invited everyone respectfully.

Okay, the world is big, it's better to have a big belly, eat first and then talk. Pang Yongfu said boldly, Boss Qin, please?

Okay, it's better to be respectful than obedient, and I'll bother Mr. Pang today. Qin Hai responded happily.