Chapter 620, 2007, Consortium Enterprises in Action 4
After entering June 2007
The routine 2008 iron ore "long-term agreement" price negotiation between the three major mines and the world's major steel manufacturers was held as scheduled in Singapore. As predicted by the critics, the three major mines proposed a price increase of 42%.
This means that after four consecutive years of sharp price increases, iron ore will exceed US$150 per ton, more than three times the price of US$42 per ton in 2004.
As expected, they are shameless negotiators. The three major mines saw the disarray within Huaxia Iron and Steel Enterprises and brazenly made such excessive demands.
As the saying goes: ask for a high price and pay back on the spot.
Regardless of the first half of 2007, Australia's FMG Resources Company supplied 77 million tons of iron ore to China. However, China's skyrocketing new demand for iron ore exceeded 200 million tons, and the total demand exceeded 700 million tons. This amount of FMG Resources Company
Far from enough.
In front of the experienced three major mines, the Chinese officials participating in the "Long-Term Association" negotiations are much more immature and are no match for these market veterans.
The chaos in iron ore continues. Large and medium-sized state-owned steel companies participating in the "long-term agreement" negotiations can obtain the iron ore supplied at the "long-term agreement" price, and can earn 15% or more by selling it back.
No matter how much you have, you can use it all.
After the iron ore arrives in Hong Kong, it can be resold to make money, which brings real benefits to large and medium-sized state-owned steel companies.
Although the "Steel Association" has repeatedly stated that it is not allowed to resell shares, this industry association does not care about personnel or finance. The member companies of the Steel Association do not have profound backgrounds. If they want to listen, they can listen to it. If they don't want to listen, they can just ignore it.
All these situations are under the control of the three major mines, which is why they can brazenly propose an excessive demand for a 42% price increase. This is because the three major mines are confident and know that the Chinese steel companies will still have to give in in the end.
During the negotiations, there were some who had secret communications with the three major mines, some who frequently flirted with them, and some who had close contacts with them.
Decisions made by the core team of Chinese negotiators are often leaked out immediately.
Wang Yaocheng also felt a headache when faced with this chaotic scene of demons. It would be better for Baosteel to negotiate with many steel companies and go out of their way to deal with it.
What is the organization of the "Steel Association"? It's too chaotic.
There are seven monks with eight different accents, and they all have conflicting opinions. Some people stand firm, some soften their stance, some are quarrelsome, and some say weird and grotesque things, and they don't agree with anything serious at all.
The reasons are very complicated. For a leader of a ministry, enterprise or local enterprise, let him consider the national game of chess and consider the interests of the country or brother enterprises in the steel industry or even private steel enterprises, even if the enterprise suffers some losses.
Persistence, this is too difficult for others.
Sitting in this position, the first thing to consider is to fill up our own bowl of rice. We do not have secret collusion with foreign parties. Other companies have already gone beyond the norm.
Sitting idle is a crime against the company and its employees, and it is an unqualified business leader.
If we can get more shares of iron ore, even if the company can't use it all, it will make tens of millions or hundreds of millions of dollars in profits if it is sold. After returning home, the employees will support it, the leaders will praise it, and the company will get benefits and face. Everyone will calculate this account.
.
Don't you know that these short-sighted insights have not considered clearly that there is no truth in the big pot without the small pot?
It’s hard for Wang Yaocheng to comment further on this. After all, he is someone else’s child, and his extended hands are annoying.
Just because Chinese steel companies are trying to gain a share of FMG Resources’ iron ore with smiles on their faces does not mean that they can dictate the business operations of the company.
The Wang Consortium is indeed very wealthy and powerful, but since you have no equity and are not a superior leader, you stand up and tell others to do this or that. Isn't it too arrogant?
Therefore, FMG Resources Company released heavy news;
In view of the strong demand for iron ore in the world's bulk market, FMG Resources plans to start the second phase of the project. The second phase of the project, which will last for one and a half years, will provide an additional 110 million tons of iron ore supply to Pierba, Western Australia.
Iron ore supply in La region has nearly doubled.
Since the port and heavy-haul railway do not require additional construction, only the expansion of mining equipment and the heavy-haul railway branch line 78km away, as well as an independent thermal power plant, the second phase of the project will bear fruit faster than the first phase of the project. The project is expected to
It will cost A$6.9 billion.
After the project is completed, it will provide an annual supply of 260 million tons of iron ore. Together with the Simandou Iron Mine Phase I project, Red River Resources Company can provide an annual supply of 340 million tons of iron ore.
If necessary, Guinea's Simandou Iron Mine can expand its production capacity at any time to meet China's strong demand for iron ore.
What does this number mean?
Based on the world's iron ore trade volume of 890 million tons in 2007, it is expected that by the beginning of 2010, the world's iron ore trade will exceed the 1 billion tons mark, of which a Chinese company's demand will reach more than 650 million tons.
The British Red River Resources Company can supply half of China's demand, which greatly alleviates the contradiction between supply and demand.
Even if the three major mines do not increase the production capacity of one ton of iron ore, the British Red River Resources Company can still solve the gap between supply and demand. The implication is that there is plenty of iron ore, so don’t grab it!
When the news reached the negotiation site in Singapore, the negotiators of the three major mines were so angry that they vomited blood and left the meeting with a dejected expression.
The Wang Consortium is so cruel!
After pouring a large basin of cold water on the root, even the hot stove has to be extinguished. How can we talk about raising prices next?
Ya is making money in a big way. In the first half of 2007, nearly 200 billion U.S. dollars have been made by listing and selling companies. I don’t like the extra 30 billion U.S. dollars in profits in the field of bulk resources, but our three major mines need it.
, could you please stop making trouble?
According to FMG Resources’ share of 150 million tons of iron ore, it would cost you six to seven billion U.S. dollars to distribute it to yourself. Isn’t U.S. dollars valuable?
Whenever he encountered such remarks, Wang Yaocheng denounced them as short-sighted;
Treating the world's steel industry as a soft persimmon who gets whatever it wants and uses the industry's monopoly position to seek abnormal huge profits is a short-sighted behavior that kills the goose that takes the egg.
But having said that, the three major mines are also full of grievances.
Isn’t what you are doing in the electronic semiconductor industry and LCD display industry a monopoly?
Killing all other manufacturers, enjoying the high profits of the industry exclusively, and not allowing others to covet even half of it, isn't this the same thing but the same thing?
Why are only state officials allowed to set fires, but the common people are not allowed to light lamps?
Faced with this kind of doubt, Wang Yaocheng swore directly in the office; "Damn it, I'm happy! I love you..."
Three major mines; full of black lines???
According to reliable sources;
British Red River Resources, the parent company of Australia's FMG Resources, is preparing to hold a separate long-term iron ore price negotiation. It is expected that iron ore prices will rise by 5% in 2008, and there is still room for negotiation.
As soon as this news came out, the three major mines immediately vomited three liters of blood and announced that the negotiations in Singapore have come to an end for the time being and are expected to restart in August.
This guy is causing trouble, and the three major mines have joined forces to take a tough stance. I want to raise the price by 42%. The representatives of the Chinese, Japanese and Korean steel companies participating in the negotiations can only choose to accept it or not, and have no right to negotiate.
Honghe Resources Company immediately announced another price increase of 5%, which is not even 1/8, and they are making tit-for-tat troubles. This really makes it impossible to continue the discussion.
Wang Yaocheng knew what these people were thinking;
It is nothing more than trying to communicate and win over through various means to achieve a consensus on the negotiating position and jointly carve up the huge benefits within reach of the steel industry.
As for the life and death of China's steel manufacturers and the future whereabouts of millions of steel workers, no one cares.
Hehe, there is no way for me to talk about eggs with you.
Wang Yaocheng can be angry at the scattered discord among domestic steel manufacturers, but he cannot be angry at the millions of steel workers who are the backbone of countless families and the main source of family income.
The loss of some profits by Wang's consortium can benefit domestic steel workers in disguise. This is the career that gives him the most sense of achievement. How can it be controlled by billions of dollars in profits?
Putting aside the negotiations on the long-term iron ore agreement, Wang Yaocheng and his party took a special plane directly from Hong Kong to Sichuan City, where a large-scale demolition and construction project of a nursery charity school was underway. All improved school buildings must meet the eight-level earthquake-proof standard.
Wang Yaocheng has a minimum standard in his heart;
At the very least, once a major earthquake strikes, students will have time to escape.
Early July 2007
The once glorious "Five Golden Flowers" of Taiwan's LCD panel industry, including AU Optronics, Chunghwa Picture Tubes, Guanghui Electronics, Chimei Electronics, and Hannstar Color Crystal, each have different situations.
Chimei Electronics was acquired by Hon Hai Group due to serious losses and was renamed Innolux. AU Optronics merged with Kobe Electronics. Chunghwa Picture Tubes and Hannstar Color Crystal officially declared bankruptcy and liquidation and completely disappeared from the long history.
Nowadays, only Innolux and AU Optronics are left in Taiwan's LCD panel industry. They are still struggling with the support of American and Japanese capital behind them. They refuse to close their eyes for the last time or exhale their last breath. They stand firm.
If you stay alive, you won't die.
Wang Yaocheng has no interest in acquiring these Taiwanese LCD panel manufacturers, they are all white-eyed wolves, and he will let them go to their final demise.
To be honest, the conduct of these Taiwanese LCD panel manufacturers is not very good.
During the previous "LCD Conference", they plotted price manipulation and exchanged information on future production and other business plans.
Huanghe Technology Group knew this very well, but they just didn't expose it.
The EU Specialized Investigations Committee stated;
Several LCD panel manufacturers involved conspired about 60 times between October 2001 and February 2006, mainly in hotels in Taiwan. They called these conspiracies "LCD meetings."
Dating back to 2001 to 2006, Hannstar Caixin colluded with other Taiwanese and Korean LG LCD panel manufacturers to manipulate prices, causing numerous domestic color TV companies in China, as well as Yangtze River Technology Group, Dell, Apple, HP and other downstream companies to
And consumers pay high fees and make huge profits from it.
Therefore, the European Commission, the EU's antitrust regulator, imposed a total fine of 649 million euros (approximately US$863 million) on LG Display in Korea and five companies in Taiwan.
Since June 2006, the China Development and Reform Commission has received multiple reports;
It reflects that since 2001, Korean Samsung, LG, Taiwan-based Chimei, AUO and other LCD panel companies have conspired to manipulate LCD panel prices, and the National Development and Reform Commission has launched an investigation into the case in accordance with the law.
Who is the whistleblower?
Ahem, it would be great if everyone knew it well.
During the investigation, relevant companies proactively reported collusion to manipulate LCD panel prices.
It has been verified that in the six years from 2001 to 2006, a total of 53 "crystal meetings" were held in Taiwan and the Korean Peninsula. The meetings were hosted in turn and were held basically once a month. The main content was to exchange LCD panel market information and negotiate LCD
Panel price.
When selling LCD panels in mainland China, the companies involved manipulated market prices based on the prices negotiated by the Crystal Conference or the relevant information exchanged with each other, harming the legitimate rights and interests of other operators and consumers.
Relevant departments have not yet made a decision on punishment. In the ensuing wave of price cuts, two of these companies have suffered. If they do not speed up, I am afraid they can only put another nail in their coffins.
For the last nail, no actual punishment can be imposed.
The embarrassing things these cowards did were even caught by others, which shows their low level and it is really embarrassing to be associated with them.
The Royal Family Fund has no interest in collecting scraps. In the end, these bastards are allowed to make a fortune, so it is better to just let them die.
What is the verdict of "Dream of Red Mansions"?
The sky and the earth are white and the sky is so clean.
a few days later
Siemens, the strategic partner of LG Electronics in the Korean Peninsula, will transfer its 42% stake in LG Electronics to Green Group for US$3.25 billion, sadly withdrawing from all categories in the home appliance field.
Think back to the beginning
Siemens acquired LG Electronics-related equity at a price of 8.2 billion euros, which was an extremely favorable price. Siemens Group was confidently preparing to do something big in the Korean Peninsula. Just three years later, it lost more than half of its investment and left with scars all over its body.
.
LG Electronics is in a bad situation today. The prices of large-size LCD panels produced by the company are generally higher than those on the market. As a result, the prices of LG's home appliances, including TVs and computers, are generally uncompetitive, and the international market share of exports has shrunk sharply.
Huge production capacity cannot be released. LG Electronics has laid off 36,000 employees three times this year, closed 11 factories including Namgyongbuk-do, and contracted the front line in order to weather the severe storm.
However, the eighth-generation production line that invested heavily in establishing has been unable to build production capacity and is instead in disuse. The debt caused by the huge investment has been burdened on LG Electronics, making the already unfavorable operating situation worse.
President Koo Bonmoo is gritting his teeth and holding on, hoping to see a miracle happen.
GREE Group became the second largest shareholder of LG Electronics. However, the siege in the world's home appliance market has not ended. A flood of Chinese home appliances products have poured into the market, making LG Electronics still in a difficult situation...
Also in the same situation is the Samsung Consortium.
After President Li Jianxi was rescued from a sudden cerebral hemorrhage, he was paralyzed and could not speak clearly, but his consciousness was still clear, and he was also looking forward to a miracle.
The Samsung Foundation was taken over by newly appointed vice president Lee Jae-yong. He was dumbfounded when he learned about the difficult operating conditions of the Samsung Foundation.
If you don't become a householder, you don't know how expensive firewood and rice are.
In just over half a year, Samsung Electronics alone has been saddled with a heavy debt of US$31 billion.
Because Li Jianxi suddenly fell seriously ill, the Samsung Group was in chaos.
Samsung Electronics did not lay off its employees in a timely manner. As its market share shrank severely, daily expenses were higher than before, spending hundreds of millions of dollars more every month.
Wang Yaocheng couldn't care about other people's affairs. He knew that the real winter had not come yet, and now it was just an appetizer.