Resource Tycoon Reborn

Chapter 164 regret

"With Mr. Fang's promise, I believe the province will actively coordinate the transfer of the four northern counties to Tangshan. As for Anxu, I'm afraid Mr. Fang will be very resentful." Ling Haozhong said with a smile. After the meal

After that, Fang Mingyuan, Ling Haozhong, and Li Huafeng said goodbye and returned to Tangshan City. Fang Mingyuan still had a lot of things to do. In just one day, he had to check on the construction progress of the Tangshan Steel Plant and supporting facilities to ensure that it could be officially completed by the end of the year.

Put into operation.

"Anxu, haha, whatever they want." Fang Mingyuan waved his hand nonchalantly. An inland city in Yanxing Province, a prefecture-level city whose GDP is not among the top in the province, even if one of theirs

, the administrative level of the second-in-command is deputy provincial level, how much confidence can he have?

"If, I say if, the Anxu market can accept Mr. Fang's conditions, will Mr. Fang invest in Anxu?" Li Huafeng asked.

"If they can accept it and actually do it, I will consider it based on the actual conditions of Anxu market, but it is hard to say how big the scale can be. It depends on Anxu's own foundation. Tongyi... not everyone can do it.

"I did it." Fang Mingyuan said calmly. Ling Haozhong and Li Huafeng exchanged glances subconsciously. It seems that Fang Mingyuan really attaches great importance to this point. Tangshan City will continue to develop in the future, and it seems that it will continue to work hard in this aspect, even if

Even if he can't keep up with Tongyi, he still has to get closer to Fengyuan's level!

Next, the topic of the three people turned to iron ore. As a big steel production city, Tangshan has eliminated many backward production capacities, but with the addition of Tangshan Iron and Steel Plant of Liaoning Iron and Steel Group Company

The current production capacity is still enough to make it proud of the world, but it is a pity that when profits are calculated, they have fallen horribly.

"If iron ore continues to rise like this, all the profits of steel companies will be swallowed up, and all steel companies in our country will work for iron ore producing countries." Li Huafeng sighed deeply. The supervisor

As an economic person, he is naturally very clear about the current situation of Tangshan City's pillar industries.

"Mayor Li, I can't say whether the international market price of iron ore will continue to rise sharply, but what is certain is that the international market price of iron ore will continue to run at a high level for a long time. So the market price

Those steel companies in the province, it is best to be mentally prepared." Fang Mingyuan pondered for a moment and said, "Although I know that these words I say are of little use, I still want to remind you two,

The steel industry is a capital-intensive and technology-intensive industry, and it is not useful to simply explode production capacity. If the country continues to launch large-scale steel companies, there will be a day when product price increases cannot absorb the negative factors of rising raw material prices.

, the bizarre result that the profit from one ton of steel cannot even buy a bottle of mineral water will become a reality!" Although he said similar words to Su Huandong, the central government has repeatedly issued orders to control the disorderly expansion of the steel industry.

But the effect is limited. Now he is just a dead horse and a living horse doctor. Ling Haozhong and the others can take whatever they hear.

Ling Haozhong and Li Huafeng couldn't help but be moved by this. Although they thought of the continuous rise in iron ore, which had eroded the profits that should have belonged to steel companies, they did not expect that such an extreme result might occur. If that were the case,

That is not a matter of working for an iron ore-producing country, but of being reduced to a slave factory. And what will happen to Dangsan City and Yeonsing Province, which regard the steel industry as a pillar industry of municipal finance? Although

It is said that the two of them subconsciously wanted to refute Fang Mingyuan's argument. However, after thinking about it, they found that they could not come up with any well-founded reason for their objection.

"So it's no wonder that Liaoning Iron and Steel Group Corporation attaches so much importance to the production of special steel." Li Huafeng sighed. He also knew that compared with ordinary steel, although the demand for special steel in the market is much lower, the profit is

It is more than ten times or even hundreds of thousands of times higher. Moreover, the substitutability of special steel is much worse than that of ordinary steel, so even if the economy is in a downturn, life for special steel manufacturers will not be too difficult.

.

"So, when the bottom of the steel industry comes in the future, Tangshan Iron and Steel Plant will not be afraid, Tangshan Fengrui Iron and Steel Company will not be afraid, but Tangshan Iron and Steel Group will not be afraid," Fang Mingyuan said.

Ling Haozhong and Li Huafeng nodded. After all, Jingcheng Iron and Steel Group Company has a profound foundation and is a central enterprise. Even if there is a trough, it should be able to resist it. However, Tangshan Iron and Steel Group Company, as a provincial enterprise, special steel production and

It only accounts for a pitiful few percent of the total output, so it will be the unlucky one. And compared with Tangshan Iron and Steel Group, Li Huafeng is more worried about other private steel companies in the city.

Tangshan Fengrui Steel Company was originally formed by the merger of Tangfeng Steel Company, Jindong Steel Company, Banbihe Steel Company, Tingsong Steel Company, Tangshan Jianlong Steel Company, Huasheng Longxing Steel Company, and Xingrui Steel Company. Although

It is said that a considerable number of private steel companies have withdrawn from the industry due to high environmental standards, but today there are still more than a dozen private steel companies in Tangshan City, and their annual steel output is generally less than two million tons...

…In today’s domestic steel market, since the price of steel products still has room to rise, the increase in iron ore prices has caused widespread distress, but the impact on these companies is still within an acceptable range. However, when the price of steel products

When there is no room for upside, as happened in the second quarter of last year when steel prices plummeted, what should we do?

"I heard that Mr. Fang also has an iron ore manufacturer in Australia?" Ling Haozhong asked with a smile.

"Well, Australia Haiping Mining Company was established after the Southeast Asian financial crisis. Now it is difficult to enter the Australian iron ore industry." Fang Mingyuan did not hide anything. Ling Hao Center couldn't help but lament that the Southeast Asian financial crisis broke out in

In 1997, that is to say, it has been several years since the Haiping Mining Company was established. Could it be said that Fang Mingyuan had already thought of the day when the price of iron ore would rise? If that were the case, his business vision would be too great.

Terrible.

"Besides, Liao Province and Yanxing Province are both major domestic iron ore production provinces. Last year, Yanxing Province's iron ore output reached one-third of the country's total output. The two of them also want to work overseas.

The idea of ​​ore?" Fang Mingyuan said with a smile.

Li Huafeng shook his head and smiled bitterly: "Young Master Fang, you are just joking with us. How can you not know the quality of the iron ore in Yanxing Province? And even so, the iron ore output in the province is

It cannot meet the needs of these enterprises in the province." Yanxing Province is indeed the largest iron ore reserve and production province in the country, and Tangshan and the surrounding areas are the main producing areas of iron ore production in Yanxing Province. Tangshan can expand

The large-scale development of the steel industry is also because its iron ore reserves and output are among the best in the province. However, although Yanxing Province has large iron ore reserves, it has few large-scale ore deposits and many small and medium-sized ore deposits, and it produces

The grade of iron ore is low, and most of it is poor ore. There are very few rich ore resources, and even less than 1% of the reserves. It must be beneficiated and enriched before smelting and production can be carried out. This will undoubtedly increase production.

cost.

"In the short term, Haiping Mining Company can only provide high-quality iron ore to Tangshan Iron and Steel Plant. Only after the output is further increased can it be possible to expand the scope of supply." Fang Mingyuan said, "If we consider the cost of long-distance shipping, in fact,

Although the iron ore in Tangshan and surrounding areas needs to be screened, the cost should be lower than imported iron ore." The reason why a port was added to the supporting facilities of Tangshan Iron and Steel Plant in the first place was because in Fang Mingyuan's plan, this port

A large part of the production capacity will be responsible for the import of iron ore and the export of steel products from the Tangshan Steel Plant.

"Then why doesn't Tangshan Iron and Steel Plant use domestic iron ore?" Ling Haozhong asked with a smile.

"Mayor Li also mentioned just now that the province's iron ore production has almost been completely divided, and iron ore needs to be purchased or even imported from other provinces. Where is the surplus to meet the needs of Tangshan Steel Plant?" Fang Mingyuan asked rhetorically.

He said, "Moreover, the added value of Tangshan Steel Plant's future products will be relatively high. Even if the cost of raw materials is relatively high, it can guarantee sufficient profits. Do other steel plants have this confidence?" Ling Haozhong and Li Huafeng looked at each other speechlessly, yes,

Do other steel plants have this confidence?

"Master Fang, I have an idea. Can we strengthen the cooperation between Tangshan Iron and Steel Group Company and private steel companies in the city and Liao Provincial Iron and Steel Group Company? Some primary products can be produced by these companies and provided to Liao Provincial Iron and Steel Group Company."

Company, you can reprocess and produce on this basis." Li Huafeng said, "In this case, Liao Iron and Steel Group Company can focus on the production of mid-to-high-end products. As far as I know, companies in Japan and Italy have done this.

.”

Fang Mingyuan sighed and said: "Mayor Li, in fact, Liao Provincial Iron and Steel Group Company tried to do this two years ago, but the result was quite regrettable. The primary products provided by other steel companies to Liao Provincial Iron and Steel Group Company,

Both the price and the quality of the products are completely unable to meet the standards of the Liaoning Iron and Steel Group Company. It is not as low as the complete production cost of the Liaoning Iron and Steel Group Company itself, so we can only give up. Of course, this does not mean that

We have completely closed the door to cooperation. If these companies in Tangshan can provide primary products with suitable prices and satisfactory quality, Liao Iron and Steel Group Corporation will be happy to cooperate with their peers." (To be continued.)

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