The reason why they are meditating is not because they have discovered problems. In fact, this report is just a very simple steel industry development report and does not say anything too in-depth.
Moreover, the steel industry mentioned above is developing very well. At first glance, there are no problems!
But these people are all smart people, and they will never be fooled by the appearance of things. Even if this report seems to have no problems, they still know that there must be problems here.
Otherwise, the prince would not have called them over overnight so seriously to analyze this report!
But what exactly is the problem?
Someone answered: "Your Highness, on the surface, there is no problem with this report, but I still don't know what the deeper meaning behind it is!"
At this time, Li Hao said: "I will report to my father tomorrow, and this is the report I am talking about."
Li Hao said so, and they knew the seriousness of the matter.
No matter how minor the matter is, it is still a test. If you do well in the test, there may be no benefit, but if you do poorly, you will definitely be criticized.
If the prince is criticized, how can they live a good life?
Soon, they began to think divergently, talking about various possibilities. Some people said that the rapid development of the steel industry will directly lead to a large increase in production in major mines, which may lead to mining disasters and harm miners. thing.
Others say, does this mean that a new round of railway construction in the empire is about to start? His Majesty is not concerned about steel, but the railway development behind the steel industry?
This group of people discussed and discussed various possibilities, from the economy to people's livelihood to the military. Basically, everything that could be related to steel was brought up and discussed, and it was not even mentioned. Those who were related were also pulled out by them.
After expanding the scope in this way, it is natural to find a lot of problems.
But the problem is that this report is just a development report on the steel industry. If there is a problem, it must be a steel problem, or a problem directly related to steel.
If it was too far off, Li Hao knew that his father never liked playing the trick of guessing who I am, guessing who you are, so he would not send a steel report alone.
Since the steel report was sent, it must be about steel issues.
If I talk so much and say nothing when I report tomorrow, I'm afraid the outcome will not be good!
Father and son have been together for so many years. Li Hao cannot say that he understands his father 100%, but there are still people on the seventh or eighth level. At least Li Xuan's superficial hobbies and dislikes for him are very clear.
My father hates people who talk too much, but I hate people who pretend to understand even more!
So he was thinking that if he really couldn't find any problem, he could only honestly say that he didn't see the problem there. According to past experience, the most his father could say was that he read a few words You can read things like that in a pig's head, but you won't really get angry, but will give you pointers, and then let you continue to solve the problem according to the pointers.
You won’t get angry just because you say you don’t understand!
But if you pretend to understand and talk boastfully, your father will get angry!
Once the father gets angry, the problem will become serious, and he may throw himself a lot of things to deal with on the grounds that he has not worked hard enough or lacks experience.
That scene was so terrifying!
This discussion lasted for a long time, and after reading a lot of information, someone finally asked with doubts: "Is it because the steel production is expanding too fast and too much, so we are worried that the steel production capacity cannot be absorbed?"
But as soon as these words came out, they were refuted: "Today's companies are not ignorant. They all produce according to orders. Nowadays, the orders of major steel plants are full and they cannot produce at all. Otherwise, they would not be able to produce." It will expand production, why can’t it be digested?”
"Even if there is more production capacity, if there are no orders, the steel factory is not stupid, how could it produce so much steel?"
Another person said: "It's just that once these steel plants are in operation, they will not stop production easily. Once production is stopped and you want to restart the production line, the cost will be very high."
"Also, even if part of the production capacity can be reduced, it will cause a large number of steel workers to lose their jobs, which will directly affect the mining and transportation of iron ore and coal mines, and then cause a series of reactions!"
At this time, Li Hao said: "Overcapacity?"
Someone on the side said: "The demand for steel in the empire is currently strong. Judging from the current production capacity, even if the production capacity is increased several times, it can be completely absorbed!"
"However, this report says that the steel production capacity is expected to increase by more than five times. Can so much steel be digested?"
The others did not answer his words at all, including Li Hao, who began to browse through a pile of various information.
Everyone is not a fool. At first, no one thought about the problem of overcapacity. Now when someone talks about it, they immediately think of many possible serious consequences.
Half an hour later, when they were flipping through the information, their expressions began to darken.
An hour later, Li Hao was the first to put down a lot of information. Even if he hadn't finished reading it, he could roughly estimate that according to the expected development of various industries, in five years, although various industries will have The demand in the steel industry is still huge, and in extreme cases it may reach two or three times the current level.
But for the more than 10 million tons of steel production capacity that has exploded in the steel industry, it will only be able to absorb seven to eight million tons by then. What should we do with the extra two million tons of steel production capacity?
Such a waste of production capacity is a trivial matter, but more importantly, it will cause a series of long-term economic fluctuations. It is estimated that in order to compete in the market, the price of steel will fall to freezing point. At that time, many steel companies will be unable to bear it and eventually go bankrupt.
Don't think that going bankrupt will reduce production, and then reduce production capacity, which is a good thing.
Bankruptcy will trigger a series of events. Workers will lose their jobs, and upstream industries will also be greatly implicated. The loans extended by banks will be recovered, and the raw material suppliers will not be able to recover their payments. This will cause a large area of bad debts. .
The economy has always been interconnected. Once something happens to the steel industry, other industries will inevitably be affected. Li Hao doesn't know how big of a problem there will be, but there will definitely be problems.
Overcapacity!
In the past, Li Hao had never thought that he would encounter such a problem. Insufficient steel production capacity had always restricted economic development, but he never thought that one day he would face the risk of overcapacity.
There is too much steel to buy, which was unimaginable before!
And this nonsense, no matter how it sounds, has become a fact!
Cold data told him that if the steel industry continues to expand like this, within four or five years, the steel industry will definitely experience an overcapacity crisis!