Resource Tycoon Reborn
Chapter 453 Very sincere
Looking at the ghostly expressions on Xu Tong and Miao Chunhui's faces, Yu Chonghai smiled so happily in his heart, because he knew that when he first learned the news, he was probably not as good as these two.
, it’s not much better. Not many people can imagine that the major shareholder behind Brazil’s second largest mining company, MM Company, is the Fang family!
In this era of rising iron ore prices, whoever controls the supply of iron ore is the god of China's steel companies! Even a small increase or decrease in price may put a steel company in a difficult position to make profits.
It is still a loss-making situation. For China’s nearly 300 million tons of iron ore imports, plus the output of Haiping Mining Company, it already has enough influence! Especially for those who do not have the right to import iron ore and have no connections with overseas mining companies.
For domestic steel companies that are qualified to sign long-term price agreements, if they can get in touch with the Fang family, they can solve the problem of raw material sources to a large extent. This is also the reason for Liao Iron and Steel Group Corporation to jump out and strive to participate in iron ore price negotiations.
Where!
For some time now, the management of Liao Iron and Steel Group Company has been actively discussing this matter with the owners of several large private steel companies in China. The owners of these private steel companies are also subject to the splint mentality in China.
State-owned enterprises are suppressed, and the local government's attitude towards them is also different from that of state-owned enterprises. Now that Liao Iron and Steel Group Corporation is willing to take the lead, and it may benefit from iron ore procurement, it is naturally very motivated.
However, with the support of private steel companies alone, the voice and influence were still not big enough, so Fang Mingyuan turned his attention to the Capital Iron and Steel Group Company. For one thing, due to various reasons in recent years, the Capital Iron and Steel Group Company has not only fallen from its peak
The period of decline has declined, and the original younger brothers have been snatched to the front one by one. This psychological imbalance is not so easy to suppress. Secondly, it is also true that the Beijing Iron and Steel Group Company has been tasked with heavy tasks in recent years.
We are still facing huge profit pressure!
Xu Tong took a deep breath. He was also a person who had been in society for a long time. Although he was shocked, he quickly calmed down. His mind was racing with thoughts. The Fang family has such an amazing overseas production capacity of iron ore.
What are you trying to do to win the right to negotiate for iron ore? Is it to further raise the price of iron ore and obtain greater profits? But if you want to do this, wouldn't it be better to join forces with the three major mining companies?
"Chairman Xu, Mr. Miao, if we just want to make a profit, then there is no need for me to tell you this. As long as the three major mining companies are allowed to take the lead, the price of iron ore will definitely rise next year.
, that’s all we need to do to make money.” Yu Chonghai said with a smile, “You two, tell me, is this the truth?”
"Mr. Yu means," Miao Chunhui said in surprise, "Master Fang means to control the rise in iron ore prices?" Isn't this just letting the money you get go?
"Yes, Mr. Fang just wants to control the skyrocketing price of iron ore! In the past few years, because the price of iron ore has been at a historical low for many years, and the initial investment in mining iron ore was huge, my country's demand for iron ore It is growing so rapidly. The US dollar is depreciating again, and the production capacity of MM Company and Haiping Mining Company is not high. They can only meet the iron ore demand of Liaoning Iron and Steel Group Company, and they have no say among iron ore suppliers. , so we have never said anything. However, in the past few years, the price of iron ore in the international market has exceeded its due price range. The three major mining companies have made huge profits, and our country's steel companies have passively suffered The price of iron ore is high to produce mid-to-low-end products. Although the market price has been rising, the profit margin is getting smaller and smaller." Yu Chonghai looked at the two people who were listening attentively, and said meaningfully, "You two Do you think that our country’s economy and the world’s economy will continue to develop at such a high rate without an economic crisis?”
"This is impossible!" Miao Chunhui blurted out. With the development of the world economy, the speed of economic crises can be said to be getting faster and faster, and the intervals are getting smaller and smaller. Since the Southeast Asian financial crisis broke out in 1997, the world has
The economy is back on the track of growth. It has been six or seven years now. The next economic crisis is likely to come in a few years. By then, even if China can survive alone, once exports are blocked, economic growth will
There was a sharp decline.
"What will happen to our steel industry by then?" Yu Chonghai asked, "Even if the prices of iron ore and freight will drop, will it be unsalable if such a large production capacity is concentrated on mid- to low-end products?"
"Yes, although my country's steel production capacity is high, most of the products are concentrated in low-end products. The profit margin is not high and the cost is difficult to reduce." Miao Chunhui said with deep emotion. Beijing Iron and Steel Group Co., Ltd. This is the case with today's production lines. However, since only 10% of the equipment will be left after the relocation to Tangshan, the rest of the equipment will be eliminated. By then, the new factory will be able to get rid of the situation where the products are too concentrated in mid-to-low-end products. See? But from now on Nationally speaking, this problem is really difficult to solve.
"Mr. Yu, if you want to produce mid-to-high-end products, it's easier said than done." Xu Tong also sighed and said, "After one year of working at Jingcheng Iron and Steel Group Company, taxes, wages, benefits, etc. will be removed.
It would be good if we can make some profits from the investment expenses. How can we still have the funds to organize technical research?" If the price of iron ore rises by another 350% next year, if the Beijing Iron and Steel Group Company does not have many
Other industrial companies may not be able to sustain it.
"Therefore, Mr. Fang believes that the skyrocketing price of iron ore must be curbed, and enough profits must be left for these steel plants in our country to support long-term development. Otherwise, once the global economic crisis breaks out, the consequences will be disastrous." Yu
Chong Hai Zhengse Road.
Xu Tong and Miao Chunhui secretly glanced at each other and thought to themselves, what Yu Chonghai said was just and awe-inspiring, as if he was thinking about the country, the people, and these steel companies!
If the Fang family is able to control the skyrocketing price of iron ore, this is of course a good thing. It will be beneficial to the domestic steel industry and the Beijing Iron and Steel Group Company. Of course, Xu Tong and Miao Chunhui support it with both hands. But this
Behind the scenes, the Fang family gave up such a huge profit, so they must have gained something!
Do you want a say in the steel industry? If Liao Iron and Steel Group Company can really negotiate an ideal iron ore price with the mining giants on behalf of the Chinese steel industry, does it need to talk about its status in the industry? It is already
The largest steel company in China, it also controls the production of overseas iron ore. Guo's Shipping Group Company is also an important transporter of iron ore. Its status will definitely surpass Haibao Steel Group Company and become the number one in the industry.
.But for the Jingcheng Iron and Steel Group Company, which has not even entered the top three ranks, what does it do to the Liao Provincial Iron and Steel Group Company?
If Liao Provincial Iron and Steel Group Co., Ltd. successfully reaches the top and has an influence unmatched by other companies in the industry, Haibao Iron and Steel Group Co., Ltd. will certainly not be happy, but from a national perspective, with the stabilization of iron ore prices, the purchase of iron ore
Compared with the fact that foreign exchange expenditures for ore have no longer skyrocketed, it is probably not a big deal. Moreover, Haibao Iron and Steel Group Co., Ltd. is not the only large state-owned steel enterprise in the country. Compared with the scattered private enterprises, large state-owned steel enterprises
The opinions are relatively unified. In the future, state-owned enterprises will still have the largest say in the steel industry! Moreover, it is not difficult for the country to win the title of the largest enterprise in the domestic steel industry.
Wouldn't it be possible to let Haibao Steel Group Company merge two large state-owned steel companies?
The success of Liao Provincial Iron and Steel Group Company has also helped Su Jiawei's officials improve their status in the country. However, Su Huandong has been unable to be promoted, and he has entered his second term and will retire in a few years.
Got it
Xu Tong and Miao Chunhui racked their brains. They never thought that the benefits gained by Liao Iron and Steel Group Company would be greater than the iron ore profits they lost, which amounted to hundreds of millions or even billions of dollars.
Huge profits.
"Both Qinxi Iron and Steel Group Corporation and Nanjing Iron and Steel Group Corporation have agreed to support this normal request of Liao Provincial Iron and Steel Group Corporation, but Mr. Fang feels that the support of Beijing Iron and Steel Group Corporation is more powerful and influential, so he asked me to come.
I will discuss it with you two on his behalf." Yu Chonghai casually felt another mental shock.
"Qinxi Iron and Steel Group Company and Nanjing Iron and Steel Group" Xu Tong nodded. Qinxi Iron and Steel Group Company is a state-owned enterprise controlled by the Fang family. Nanjing Iron and Steel Group heard that Liao Iron and Steel Group Company intends to acquire it. Two such companies
company, no wonder Fang Mingyuan feels that the strength is not enough. But at least if Beijing Iron and Steel Group Corporation expresses support, it will not be the first state-owned enterprise.
"Mr. Yu, let's talk logically. We should support Liao Iron and Steel Group Company. Try it. No matter how bad it is, we will just passively accept the international price of iron ore." Miao Chunhui pondered for a while and then continued, "We
People in the clear don't tell secrets. Although Chairman Xu and I are the first and second leaders of the Capital Iron and Steel Group Company, we must listen to the opinions of the city when it comes to such a major matter. The two of us cannot make arbitrary decisions without authorization. Otherwise, we must listen to the opinions of the city.
Haha, maybe next time Mr. Yu comes to the capital again, we will already be part-time workers."
Yu Chonghai curled his lips secretly, what he said was true. But it was a bit too exaggerated. The first and second leaders of the Beijing Iron and Steel Group Company were indeed fat cadres, but it also depends on the time. At this time, the Capital Iron and Steel Group
The company is about to reduce production and relocate. It has a lot of difficult problems at hand. Just solving the re-employment problem of tens of thousands of redundant workers and appeasing their families can make people worry about it. In just five years, it has to be done in Tangshan.
It would not be that easy to build a modern multi-million-ton steel plant on a certain land. Even ambitious people would not easily jump out to take over the work of two people at this time. However, he did not say so.
"Then what Mr. Miao means," Yu Chonghai chuckled, "How can we make you two make this determination?"
"We are all sensible people. Now there are only three of us. Let me tell you clearly that the current conditions offered by your company are not enough for us to convince the Municipal State-owned Assets Supervision and Administration Commission to agree to our support of Liaoning Iron and Steel Group Company. No matter what,
, Haibao Iron and Steel Group Company, they are all very large state-owned enterprises, we are trying to dismantle them." Miao Chunhui said with a look of embarrassment.
If possible, Yu Chonghai really wanted to spit in his face. The competition between Beijing and Shanghai can be said to have started since the founding of the People's Republic of China. Haibao Iron and Steel Group Co., Ltd. can be said to be Shanghai Iron and Steel Group Co., Ltd.
The pillar and benchmark of the industry, Jingcheng Iron and Steel Group Company is the pillar and representative of Beijing's iron and steel industry. When Jingcheng Iron and Steel Group Company was brilliant, the capital side often showed off to the Shanghai side. Later, the Haibao Iron & Steel Group Company came from behind, and Shanghai
The people in the city are also very proud. If there is an opportunity to undermine the Haibao Iron and Steel Group Company without causing any fundamental conflicts, the Beijing Iron and Steel Group Company will definitely be happy.
"I heard that the annual production capacity of the new steel plant built by Jingcheng Iron and Steel Group Company in Tangshan is 10 million tons of steel. So, your overseas iron ore procurement will be entirely handed over to MM Company and Haiping Mining Company, regardless of the final negotiation
What is the market price of iron ore? We will give the Capital Iron and Steel Group Company a 92% discount based on it. The contract is for five years. How about it?" Yu Chonghai said calmly, "I believe this result is enough for the two of you to explain to the superiors.
.”
Miao Chunhui and Xu Tong did some mental calculations. In 2006, the average FOB price of Australian iron ore was US$46 per ton, and that of Brazilian ore was US$44 per ton. If calculated in this way,
The Fang family transfers tens of millions of dollars in profits to Beijing Iron and Steel Group Corporation every year, which is more than 50 million U.S. dollars in five years, almost 378 million Chinese dollars! This is under the premise that the price of iron ore will no longer rise.
If the price of iron ore skyrockets twice more, the profit margin may reach 500 million yuan! This is not a small sum for the Beijing Iron and Steel Group Company, which is about to reduce production, suspend production and relocate.
The two of them couldn't help but feel secretly moved by it. Coupled with the conditions they had agreed to before, it seemed that the Fang family was indeed very sincere!
"You two also know that a new round of iron ore price negotiations is about to start, so Mr. Fang doesn't have much time for you to think slowly. We hope that your company will give us a definite answer in three days. In three days,
If you reply six days ago, you will only get a 19% discount. If there is still no reply after six days, we will regard the Beijing Iron and Steel Group Company as rejecting our proposal." Yu Chonghai said solemnly. (To be continued.)
You'll Also Like
-
ben10: Start sign-in error table
Chapter 99 6 hours ago -
The blue sea, my youth
Chapter 133 6 hours ago -
The Hell Card brings a depressing whistle to people
Chapter 127 6 hours ago -
Demon Slayer: The Undead Swordsman of Thunder
Chapter 262 6 hours ago -
After turning into a white tiger, he roamed the wild forests
Chapter 228 6 hours ago -
Douluo Dalu II Peerless Tang Sect
Chapter 625 6 hours ago -
Hogwarts everyday players
Chapter 60 6 hours ago -
I opened up the information age in the world of Naruto
Chapter 403 6 hours ago -
Douluo: The beginning ruined Yu Xiaogang’s reputation
Chapter 115 6 hours ago -
Invest in Wanjie starting from Doupo
Chapter 196 6 hours ago