Chapter seven hundred and forty-ninth fight each other
Since the end of the last century, international iron ore has been rising. China's economy has successfully transformed from a planned system to a market system, got rid of the impact of the Asian financial crisis, and gradually entered the fast lane. Infrastructure construction continues to heat up, and its impact on steel and cement
, the massive increase in demand for oil and other materials has inevitably led to an increase in the prices of global resource products. This is not unexpected, and to a certain extent, it is also reasonable.
Then, Wang Zheyi received news from South America that the two major iron ore giants intended to adopt a price alliance to significantly increase the price of iron ore. The maximum increase may reach more than 70%. For any commodity, one year
The price increase of 70% cannot be said to be a normal phenomenon. It can only be interpreted as a naked blackmail.
There are certainly reasons why Vale and BHP Billiton are so open-minded. 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 iron ore.
Ore, China's steel industry is extremely dependent on it. In other words, even if they have a stranglehold on you, you can only obey obediently if they want to exploit you no matter what.
Of course, if Chinese steel companies want to resist, they have some options. After all, business is a matter between buyers and sellers. If one party goes too far and really forces the other party to a corner, the business will not be successful.
If Chinese steel companies want to break the blackmail of Vale and BHP Billiton, they need two factors. One is the courage to fight, and the other is sincere unity to avoid being defeated by their opponents individually.
Qin Hai had not hesitated to personally take action to rectify the domestic small steel companies before, providing money and technology, tying the small steel companies around him, and establishing the National Steel Alliance, precisely to deal with this situation. However, his influence
His power is limited to the Daqin Group itself and the surrounding small steel companies. There are other domestic steel companies that occupy half of the country, and he is currently beyond his reach. If these companies surrender to Vale and BHP Billiton, then Qin Hai will not be able to do anything no matter how tough he is.
No more power.
"Old Song, how are you in contact with Pudong Iron and Steel, Yanshan Iron and Steel, and Lin Gang? What is their attitude towards this international iron ore price increase?" Qin Hai asked Song Hongxuan.
Song Hongxuan smiled bitterly and shook his head. He said, "I've already asked, but they don't have any attitude. They are all waiting and watching."
Pujiang Iron and Steel Company, Yanning Iron and Steel Company, Linxi Iron and Steel Company, etc. are all large state-owned steel companies, with an annual output of more than 10 million tons. They have considerable say in the domestic steel market and are also major importers of iron ore. Early
A few years ago, Song Hongxuan established a close public-private relationship with the leaders of these steel companies, often exchanging technical information with each other, and having one or two routine gatherings almost every year.
This time, the iron ore price increase information sent back by Wang Zheyi was reported directly to the State Economic and Trade Commission. The Economic and Trade Commission will naturally convey this information to Pudong Iron and Steel, Yanshan Iron and Steel and other companies. Song Hongxuan immediately after receiving the news
We contacted these companies and asked them about their response strategies to this matter. However, the attitudes of these companies were very ambiguous, and they all said that further observation would be needed to determine.
Daqin Group has a substantial competitive relationship with these large steel mills in terms of steel production. Although they have a good relationship with each other on weekdays and often have social activities, when it comes to the core issues of business decision-making, the differences between each company are
Companies such as Pudong Iron and Steel Co., Ltd. and Yanshan Iron and Steel Co., Ltd. may not have their own considerations about the increase in iron ore prices, but they have chosen to play dumb and wait to see what other companies do.
Qin Hai was also mentally prepared for this situation. He said: "Some of our companies are really experts in civil war and outsiders in foreign war. They all want to be the boss in the domestic market, and various competition tactics emerge in an endless stream. When we encounter the need to unite,
, when they unanimously spoke to the outside world, they all shrank, which really left people speechless.”
Song Hongxuan said: "They each have their own calculations. Yanshan Iron and Steel has its own iron ore mines, so it is not so dependent on imported iron ore, and it can absorb the impact of price increases; Pudong Iron and Steel imported more than 2,000 yuan last year.
Ten thousand tons of iron ore is estimated to be able to last for more than half a year. So there is no rush. As for Linxi Iron and Steel Company, I heard that they are planning to exchange coke with India for iron ore, so they are not very susceptible to iron ore price increases.
Impact. On the other hand, several companies such as Hongyuan Steel Company and Dongyuan Steel Company have no good means and can only hold their noses and accept the price increase."
"What I'm afraid of is this kind of calculation." Qin Hai sighed, "China imports 200 million tons of iron ore a year, accounting for half of the global iron ore trade volume. It stands to reason that it has full say. But.
Everyone is fighting on their own, and the strength cannot be used in one place. In the end, we end up in a situation where we are at the mercy of 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 started to stockpile iron ore since the year before last year, and now we have almost 50 million tons, which is enough for us to use for a while.
.Coupled with the rectification of small steel, hundreds of small steel plants across the country can basically advance and retreat with us. If we want to negotiate with Vale, we also have some negotiating weight. However, if they are determined to raise prices,
It’s quite uncomfortable for us to keep waiting for us to run out of inventory.”
Qin Haidao: "This kind of thing is to see who can persist to the end. We are under pressure, and Vale and BHP Billiton are not without pressure. They are engaged in mining, and the ore cannot be sold, and 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 do without their ore, then they will panic and eventually bow to us."
"You're right." Song Hongxuan nodded, "We have spent so much effort on the layout, and it's time to test the effect. What do you think, let's talk about how we divide the work."
Qin Hai smiled and said: "Still the old rules, you stay at home and leave the running errands to me outside. I will go to the capital first to determine a big principle with the Economic and Trade Commission, and then go to Brazil to meet with Vale.
Go bicker with them."
"You can go without worries. You don't have to worry about things at home." Song Hongxuan said confidently.
After many years of cooperation, Qin Hai and Song Hongxuan had a deep tacit understanding. They knew how to cooperate without saying too much to each other. Qin Hai left Anhe in a hurry and rushed to the capital with Heizi. Song Hongxuan also
Not idle, he urgently summoned the directors of the steel plants under the group to learn about the iron ore inventory and orders from them, asking them to impose strict orders and strictly implement the group's decisions. After arranging the group's production tasks,
Song Hongxuan also contacted the heads of various steel plants in the "Steel Alliance" and reminded them to pay attention to the inventory of raw materials in order to cope with the possible increase in iron ore prices.
After Qin Hai arrived in the capital, he went directly to the Economic and Trade Committee without delay and found Cui Hongchun, the deputy director.
"I knew you would come." Cui Hongchun did not express surprise at Qin Hai's visit. He asked his secretary to pour Qin Hai a cup of tea, then sat down with Qin Hai on the sofa and said, "You are here for iron ore."
It just happened."
"Director Cui is wise." Qin Hai slapped him in the face.
"What kind of wisdom do I have?" Cui Hongchun curled his lips. He knew that Qin Hai's words were just a joke, so he did not deliberately correct him. Instead, he said: "At least five years ago, you once talked about guarding against international railways.
Regarding the problem of skyrocketing ore prices, your prediction has really come true. Last time I met the old director Wang Hongsheng, he even praised you for your foresight in looking at the problem."
Qin Haidao: "Actually, this is a problem that everyone can see, but they just don't take it to heart. Last year our country imported 200 million tons of iron ore, and this year it may reach 2.5 billion tons. If every ton of iron ore
If the price increases by 70%, we will have to spend almost 8 billion US dollars more. This is not a small amount. Isn’t it worthy of attention?”
Hearing Qin Hai's account, the relaxed expression on Cui Hongchun's face suddenly disappeared. He had also settled this account, and he felt very distressed. In fact, even if Qin Hai didn't come to him, he would still be there in a few days.
He will also contact Qin Hai specifically to discuss strategies to deal with the rise in iron ore prices. Rising prices for resource products is normal, but spending more than 8 billion yuan a year is a loss for anyone. The Economic and Trade Commission these days
We have held several expert seminars on this issue and have also learned about the situation from our subordinate steel companies, but there is no good solution. When faced with such a difficult matter, the person Cui Hongchun wants 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 idea. Come on, tell me and let me listen." Cui Hongchun said unceremoniously.
Qin Haidao: "To be honest with Uncle Cui, our group has indeed made some preparations for this situation, including the fact that last year I took the lead in rectifying the small iron and steel industry, and also had the intention of preparing for a rainy day. If the Economic and Trade Committee can trust me, can we negotiate for iron ore?"
Leave the task to me, and I will work hard to control the price increase within 20%."
The iron ore price increase of 20% a year is an acceptable range in the country and a relatively reasonable price increase. If Vale and BHP Billiton do not join forces to raise prices, then they should control the price within this range.
Within the price range, this is a suitable price for both supply and demand.
Business cooperation is a win-win situation. One party gains while the other party suffers a loss. It is destined not to last long. Qin Hai plans to negotiate with Vale. Naturally, he will not offer a price that is completely unacceptable to the other party, otherwise the negotiation will not be possible.
It went down. But if the other party is unwilling to accept the increase of 20% and insists on raising the price by 70%, Qin Hai will use his own combination punch. To be continued
ps: After two days of busy work, I have handed in the materials and are waiting for feedback from the customer. Tomorrow is the end of the month. If you have a monthly ticket, just vote for it. If you put it away, you will get hairy and continue to code the next chapter.