Vale monopolizes more than 40% of the world's iron ore trade and appears to outsiders to be an invincible giant. But Callum himself knows that this strength is actually very weak. Mining is a capital-intensive industry.
In the industry, from acquiring a mine to building roads and purchasing equipment, huge sums of money are spent at every step.
Vale has hundreds of billions of dollars in capital, but it also has hundreds of billions in liabilities. Every day, the company has to pay tens of millions of dollars in interest, and at the same time pay tens of millions of dollars in depreciation for the equipment it owns.
In order to cover various expenses such as rent, employee wages and other expenses for branches, mines and other locations around the world, the company must ensure an annual operating income of more than 20 billion to ensure a breakeven.
What Qin Hai saw was Vale's weakness. He knew that the iron ore transaction with Vale was crucial to China's steel industry, and it was also a matter of life and death for Vale itself. If both parties
If the talks really break down, China's losses will undoubtedly be greater, but Vale cannot be alone and will also suffer disaster.
Vale's confidence comes from the belief that China's steel industry is pursuing rationality and will not be willing to fight to the death with Vale. But it never expected that China would actually start to compete with Vale.
, who is the first to blink.
Does Callum dare to gamble? Obviously, he has no such courage. China's current posture is a warning to Vale that if they do not yield, the Chinese would rather spend more money or find new sources of ore supply.
If such a pattern is really formed, China will lose billions or even tens of billions of dollars, which is affordable for a country. And Vale will be completely bankrupt in this struggle, even if Callum
If he wants to play, the board of directors behind him will not hesitate to show him a red card.
However, it would not be in Vale's interests to back off after being frightened by the Chinese, so Callum must find a way to find out the Chinese's trump card. See if the Chinese really want to go to war, or are they just
bluff.
A top-secret email flew to the far east via a submarine optical cable and appeared on the computer screen of Sun Zhenjiang, general manager of Pujiang Xinzhen Resources Trading Company.
In a steel war ten years ago, Sun Zhenjiang lost all the billions of assets he had accumulated over more than ten years in business. Fortunately, the elders in his family had some old connections in the upper echelons, which helped smooth out his loans from many banks.
, thus saving his personal freedom. His original trading company was forced to close down, and he went abroad for a few years to see that the limelight had passed. Then he returned to China and registered this new trading company in Pujiang
The company specializes in the business of importing foreign minerals, and its largest business is iron ore.
When he was doing business in the early years, Sun Zhenjiang had a group of little brothers who had grown up together in the compound to help each other. During the steel war, Sun Zhenjiang dragged these little brothers into the water, and later tried to make the little brothers
He helped him out, but in the end he incurred public outrage. He almost escaped being chased by these little brothers. After returning to China this time, Sun Zhenjiang didn't even dare to go back to the capital to do business, let alone join forces with these little brothers.
As a lonely man, he had no choice but to get involved with Vale. On the surface, he was Vale's domestic agent, but privately he also served as a commercial spy. During the years when he was selling steel, he worked with many domestic steel companies.
They all had contacts with each other. During the later steel war, Sun Zhenjiang did not have any conflicts with the steel companies, and he is still familiar with them until now. In addition, he was able to obtain iron ore from Vale, and after going back and forth, he became a member of various industries.
A special guest from a steel company.
Sun Zhenjiang was both excited and worried after receiving the email from Joffts. What made him excited was that Vale relied on him on major strategic issues, which meant that his status in Vale had improved, and he would have more opportunities in the future.
The capital to strive for more profits. The reason for the anxiety is that he knows the meaning of what he is doing. This is not just providing some background information, but spying on China's core industrial intelligence.
"I've lost all my face by you! If you get into trouble again, don't expect your family to save you!"
The angry shouts of his elders 10 years ago suddenly rang in Sun Zhenjiang's ears. He subconsciously held his head and covered his ears, trying to block out the sound.
Should he take a desperate risk and help Joefts with this matter? Sun Zhenjiang is caught in a contradiction. Taking a step forward may bring unlimited benefits, but it will also be accompanied by the risk of prison; and if he takes a step back, he
He will lose Vale's trust in him, and then he will stop moving forward in the business and can only live a poor life.
nnd, wealth can only be gained through danger. Didn’t my father go to the battlefield with his head in hand in exchange for a prominent position and the glory of his descendants? Why can’t he take a risk?
Thinking of this, Sun Zhenjiang picked up the phone on the table, dialed a number, and greeted the phone affectionately: "Hey, Mr. Xiang, I'm going to Hongyuan on a business trip tomorrow. Do you have time to sit down with me?"
In the office of the general manager of Hongyuan Steel Company, Pang Yongfu and Xiang Pengda sat across from each other. The cigarettes in their hands had long butts, but neither of them noticed.
"Sun Zhenjiang said that he can help us get the iron ore from Vale." Xiang Pengda reported to Pang Yongfuhui.
"What channels does he have?" Pang Yongfu asked, "Hasn't the state strictly prohibited companies from having private contact with Vale?... This Qin Hai has covered the sky with one hand and tricked us all. I want to see how he gets down in the end.
"
"Qin Hai is currently busy looking for minerals all over the world. I heard that they have all found Russia and want to develop the Dubiago iron ore." Xiang Pengda continued what Pang Yongfu said.
Pang Yongfu sneered and said: "We have learned about the situation of the Dubiago iron ore. It is difficult to mine in the alpine zone, and the iron ore has low grade and high phosphorus content. Whoever wants such ore wants it, anyway.
I don’t want it.”
"So, we can only find a way to connect with Vale. In the past two months, we have used domestic ore. Although there are subsidies from the Economic and Trade Commission, the cost is higher than Vale's ore, and the grade of domestic ore
Low, our equipment capabilities cannot be fully utilized, and both ends will suffer." Xiang Pengda said.
Pang Yongfu lowered his voice and asked: "Lao Xiang, do you think Sun Zhenjiang is reliable?"
"It's hard to say." Xiang Pengda said, "However, his elders do have some prestige, and their words from the top still have some weight."
"Shit!" Pang Yongfu said disdainfully, "It's really important. How could Sun Zhenjiang be so badly beaten that time in 1993?"
The steel circle is only so big, and everyone in the circle knows about the 1993 Steel War. Xiang Pengda said with a smile: "There is no way, the Planning Commission took the lead that time, and the steel price was liberalized
The matter related to the reform of the entire material supply system was the top priority in the country at that time. Sun Zhenjiang went so overboard with this kind of thing, it would be strange if he didn't stumble. If his parents didn't help him smooth things over, he would have been in trouble
Sit through it."
"What happened this time is pretty much the same as back then." Pang Yongfu said. Then, he remembered something again and couldn't help but shuddered and said, "I remembered that the planning committee member Wang Hongsheng also used Qin Hai as a gunman.
, Daqin Group established its authority in the steel industry that time, and was also registered with the chief. This time it is Qin Hai again. Do you think this feels a bit destined? "
"Mr. Pang, do you believe this?" Xiang Pengda smiled and said, "I feel that Sun Zhenjiang's game this time is not as big as last time. Didn't he just bring in some iron ore to solve our urgent need?
, even if there is some conflict with the notice of the Economic and Trade Commission, I guess there won’t be any big problem with the relationship with the superiors, right? The most important thing is that we are making a deal with him, and we don’t know other things, even if something happens to him
, what does it have to do with us?”
"That's the truth." Pang Yongfu nodded, "Now the Economic and Trade Commission is betting all its money on Qin Hai. They don't even think about it. Qin Hai is a private enterprise. Even if this matter is messed up, there is nothing the Economic and Trade Commission can do.
He can't. We are different. If we continue like this, we will get a red card from the province this year."
"So what do you mean, we can contact Sun Zhenjiang?" Xiang Pengda asked.
"You just have to take control of this matter." Pang Yongfu said vaguely.
Bah, you old fox, Xiang Pengda cursed in his heart. He knew that Pang Yongfu was afraid of taking responsibility, so he asked him to jack up the tank. It was Pang Yongfu's fault that this matter was accomplished, and it was Xiang Pengda's fault that it was not accomplished.
, how could Xiang Pengda be willing to do such a bad thing? He pretended to be embarrassed and said: "Mr. Pang, Sun Zhenjiang said on the phone that he wanted to meet with you. Of course, you don't need to talk about the ore.
The main thing is to connect with each other emotionally. I alone don't have enough weight in front of him."
"Does this kid still have such a big reputation?" Pang Yongfu said indignantly, "How dare he, a second-generation kid who has passed away, say such a thing?"
Xiang Pengda shook his head and said: "Mr. Pang, I don't care about his background. The main thing is that he has a relationship with Vale. Once the country is liberalized in the future, if we want to reconnect with Vale, we will have to rely on him to help us."
Besides, he can now avoid the control of the Economic and Trade Commission and obtain the ores from Vale, which is also of great help to us."
"Well, in that case, it doesn't matter if I meet him. However, we have agreed that when it comes to ores, I won't say anything and you just make an agreement." Pang Yongfu warned.
Xiang Pengda beamed with joy and said, "No problem, I'll book a hotel right away." (To be continued.)