Resource Tycoon Reborn
Chapter 496 Accident
"If they can take concrete measures to cooperate with Premier Su and freeze the further disorderly expansion of my country's steel production capacity, well, for example, steel projects that have been submitted for approval before the Spring Festival can continue to be constructed. After that, No matter how fancy the project is, it will no longer be approved. If they can guarantee this, Liao Iron and Steel Group Company can give in." Fang Mingyuan said.
Zong Zheng was startled and thought for a moment. Fang Mingyuan's request was at least more reasonable than the previous ones. It was also in line with national policies. As for the production capacity regulation of the steel industry, it can be said that since Su Huandong became the second in command,
, they have been making constant demands, but to be honest, although it is said that there are regulations every year, the production capacity of the steel industry is increasing year by year. The result is that the concentration of the steel industry has not only not increased, but has become more and more concentrated.
The more dispersed it is. Regarding this issue, Su Huandong is also very troubled. It is not that he has not put forward some proposals to use more radical methods, but they have been rejected by the upper management. If it is said that this time, some people can change their minds and support Su Huandong.
Although controlling the disorderly expansion of steel production capacity does not mean that this growth momentum can be completely stopped, it is at least better.
"If there is capital that wants to enter, then eliminate backward production capacity. How much is eliminated and how much is allowed to be added. It can only be lower than the number of eliminated backward production capacities and not higher than it." Fang Fang Mingyuan continued, "This is very important to China Steel.
Members of industrial associations, including Haibao Steel Group Corporation, also benefit." No one knows better than Fang Mingyuan how high the production capacity of China's steel industry will be in the future, and how considerable the excess capacity will be! Iron Ore International
The skyrocketing prices in the market are largely related to the rapid growth of China's steel production capacity. As long as the domestic steel industry's production capacity growth is blocked and there is no strong demand, iron ore prices will naturally gradually return to normal.
It's normal.
"Haha, I understand what you mean, but I can't make the decision on this matter. Let me ask you." Zong Zheng smiled and said, with these words, his run this time was not in vain.
"It is also good for them to do this. It will save everyone from selling steel at a ridiculous price in the future." Fang Mingyuan waved his hand and said. "There are still guests at home, so I will send them away. Anyway, there are still more tomorrow.
See you again."
"The devil is cunning, Mr. Fang, don't be careless." Zong Zheng said with a smile. He walked out of the courtyard and got into the car. Zong Zheng ignored the attentive waiter of his female secretary and sat in the back seat of the car with his eyes closed.
, silently, until the car stopped in front of the hotel, he opened his eyes. He walked into the luxury suite on the top floor of the hotel with neither speed nor slowness. Zong Zheng asked them to find a laptop,
He waved his hand for everyone to exit.
Two hours later, Zong Zheng stood in front of the window, looking out at the snowflakes still flying all over the sky. But his heart was not as calm as it seemed. He was not a fool either. Regarding iron ore, since he was also considered a member of Liao Provincial Steel
He is a shareholder of the group company, so he has more or less done his homework. So although Fang Mingyuan only mentioned a few words, he also thought of some clues along the way. The huge price difference between the Changxie Mine and the spot iron ore trade,
Before China imported large amounts of iron ore, this problem was not so prominent.
Although there is a big difference between poor ore and rich ore, iron ore has to be admitted. This is a mineral that exists universally in the world, except for very small and a few special countries.
Generally, there are reserves, but in countries that are too small and do not have reserves. Even if there is a demand for it, the demand is not very large. Nowadays, among the countries with a large demand for iron ore, except Japan and South Korea, this is true.
Except for the lack of iron ore reserves, the United States and Europe are basically easy to mine and have almost mined them, and the cost of not mining them is relatively high. It is not as cheap as importing, and the steel industries in these countries have also begun to develop.
On the downhill road, a large amount of scrap steel has been accumulated from the development of the steel industry in the past many years, so the amount of imported iron ore is much less than that of China and Japan. The total amount of iron ore imported by the EU every year is less than that of Japan.
The import volume of iron ore from South Korea is slightly larger. If China’s iron ore import volume is added, it will be crushed.
The steel companies in these countries already have a complete process for importing iron ore, which has passed the test of time. In China, due to domestic policies, some steel companies have the right to import iron ore and can compete with the three major steel companies.
Mining companies that sign long-term mining agreements can purchase spot iron ore from the international market. However, many steel companies are unable to sign long-term mining cooperation agreements with the three major mining companies, and even do not have the qualifications to import iron ore. They can only buy iron ore from companies with import rights.
Enterprises purchase imported iron ore, which has contributed to the rapid growth of spot trade of iron ore. Although the price of spot trade iron ore fluctuates with market demand, today when iron ore is generally rising,
It mostly rises when it rises and rarely falls when it falls. The result is that the price of iron ore spot trade is often higher than the price of Changxie mine, and is often more than ten percent higher, or even more!
Zong Zheng knows these things, and many people in the industry also know it, but he has never thought deeply about what the consequences will be if this situation continues. But Fang Mingyuan's words today woke him up. Iron Ore
The price formation mechanism has been established for more than 20 years now, and people have become accustomed to it, but this does not mean that this mechanism will continue unconditionally! If we say that the Changxie Mining Mechanism is not in line with the three major mining companies
If the interests are high, just as Fang Mingyuan said, the three major mining companies will overturn the table!
After thinking about this, Zong Zheng's back was already covered in cold sweat. You know, there are many commodities traded in the world market, such as soybeans, oil, and grain. However, like iron ore trade, implementation of policies similar to Changxie Mining
There is no pricing mechanism, at least Zongzheng doesn’t know about it. And if the Changxie Mine mechanism is completely abandoned and a market pricing method similar to oil and soybeans is implemented, the biggest losers will undoubtedly be those who have just adapted to the Changxie Mine pricing.
mechanism, the Chinese steel industry has the largest spot trade volume. And in this way, many Chinese companies with Changxie mine pricing qualifications will undoubtedly be pushed to the spot market, and the market price of iron ore will likely have another change.
Round of skyrocketing!
In the past few years, although the price of iron ore has been rising continuously, because the Fang family has controlled the source of iron ore in advance, Liao Iron and Steel Group Company has advanced technology, has good production cost control, and has no worries about the sales of its products, so these
In recent years, the profit margin has been relatively high, and the Zong family has also obtained considerable profits. However, Zong Zheng also understands that this is mainly due to the rapid development of the domestic economy, the real estate industry and the launch of a large number of infrastructure projects. There is a strong demand for steel products, which will
The rising cost of iron ore has been absorbed. But even so, the profits earned by most domestic steel companies have shrunk significantly.
The continuous improvement of domestic steel production capacity makes it difficult to raise the price of domestic steel products on the one hand. On the other hand, it makes it difficult for domestic companies to lower prices when importing iron ore. This is why Su Huandong has repeatedly mentioned the need to control domestic steel production capacity.
The reason for eliminating backward production capacity. However, the pursuit of GDP by various local governments makes them unable to give up the construction of new steel plant projects.
"Can steel products really be sold at cabbage prices?" Zong Zheng murmured to himself. As for Fang Mingyuan's words, he kept them in his mind without missing a word. If it was someone else who told him that steel products have recently
He would definitely sneer at the possibility of selling at a cabbage price, but when Fang Mingyuan said this, he would seriously consider it formally. Although domestic steel companies have experienced several peaks and troughs in the past few years, the worst
At that time, there was no such tragic scene as what Fang Mingyuan described.
If it is true as Fang Mingyuan said, then Zong Zheng can understand why Fang Mingyuan is so concerned about participating in iron ore price negotiations, and even wants to promote Liaoning Iron and Steel Group Corporation at such a high cost.
Only by participating in the Liaoning Iron and Steel Group Corporation has a greater say in the industry, can the worst situation arise from the internal control of the industry. After all, the Liaoning Iron and Steel Group Corporation is also one of the Chinese steel companies. No matter how independent it is, it will definitely have to
Affected by the general environment.
Thinking of this, Zong Zheng frowned and paced in front of the window. He didn't even have the mood to look at the snowy scene outside the window. It wasn't until his female secretary cautiously invited him to go to dinner that he noticed that it had turned dark without even realizing it.
It was dark. He had been alone in the room all afternoon! At the same time, a strong sense of hunger also spread from his belly to his brain.
At this time, Fang Mingyuan had just sent away Heikejiro and Masao Iwata. Although it was already dinner time, Heikejiro and the others still rejected Fang Mingyuan's suggestion to stay and have dinner together.
Seeing the two people's cars driving into the wind and snow, Fang Mingyuan suppressed his smile and walked into the courtyard with a frown. It had been snowing all day, although there were times when the snow weakened.
But it never stopped. And now through the lights in the courtyard, it can be seen that the snowflakes are large and dense. The areas in the courtyard that have just been swept will soon be covered with another layer of snow. And those that have not been
In the cleared area, the snow layer was probably enough to cover half of the calf. This snowfall can be said to be the rare heavy snowfall in Qinxi Province in recent years.
"Alas" Fang Mingyuan stood under the eaves, looking at the snowflakes flying in the sky, and couldn't help but sigh. This snow has undoubtedly added a lot of difficulties to those who are preparing to return to the city after the festival. Such a big
Snow, even on the railways, is probably a headache. The Fengyuan and Tongyi municipal governments are probably the busiest at the moment are the transportation department and the environmental sanitation department. But he doesn’t need to worry about these things. Someone will naturally be responsible, but
The unexpected arrival of Masao Iwata, director of Mitsui & Co., is something he must be responsible for.
Apart from the polite remarks at the beginning, the two sides talked for nearly four hours. The reason why the talks lasted so long was mainly because Mitsui & Co.'s change in attitude was beyond Fang Mingyuan's expectation.
Originally, he thought that Masao Iwata came to represent Mitsui & Co., Ltd., just to repeat the same old tune, and to act as a lobbyist for the three major mining companies. It was just for the sake of Heikejiro and Sony that he decided to negotiate with Iwata.
Masao met Masao. But after talking about it, he realized that Masao Iwata had no intention of being a lobbyist for the three major mining companies. He spent the whole afternoon talking about Mitsui & Co.’s plan to promote the relationship between Mitsui Group’s companies and the Fang family.
Affiliated companies carry out various cooperation matters.
Although Fang Mingyuan still doesn't know what kind of medicine Mitsui & Co., Ltd. sells in this gourd, and he can't see the purpose behind Mitsui & Co., Ltd.'s doing this, he has to admit that Masao Iwata came to represent Mitsui & Co., Ltd. this time.
, these proposals put forward will have a very obvious promotion effect on the future development of these enterprises under the Fang family. If Fang Mingyuan had not known that in the next few years, the relationship between Japan and China would further deteriorate, and even
It affects the economic and trade exchanges between the two countries, and the promotion effect is even greater!
These include cooperation between Nippon Steel Corporation and Liaoning Steel Group Corporation, cooperation between Mitsui Lines Co., Ltd. and Kuok Shipping Group Co., Ltd., cooperation between Mitsui Chemicals Co., Ltd. and Hirakawa Petroleum Group Co., Ltd., and cooperation between Sumitomo Mitsui Banking Corporation and Gulf Second Bank.
, the cooperation between Toyota Motor Corporation and Qinchuan Samsung Motors Group, the cooperation between Sony, Toshiba and Deko Electronics Group, Xinyi Group, the cooperation between Mitsui Fudosan Corporation and Longxing Construction Group
Although every proposal is just an intention or a draft, and there is still a long way to go before it can be put into practice, Fang Mingyuan had to admit that he was quite tempted by some of the proposals.
For example, Fang Mingyuan was very tempted to cooperate with Japan's largest real estate company Mitsui Fudosan Co., Ltd., which is responsible for the construction, sales, leasing and management of various forms of real estate, including office buildings, residences and condominium properties.
Mitsui Fudosan Co., Ltd. is one of the most representative developers among Japanese real estate companies. It can complete a complete set of work from early project planning, management and control during operation to post-project maintenance. It was established in 1941
, has been in existence for more than sixty years now! Its rich management experience in real estate development, operation, and maintenance is completely worthy of Longxing Construction Group learning from it. (To be continued.)
ps: ps: Another day
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