Resource Tycoon Reborn

It was not until New Year's Day was approaching that Fang Mingyuan returned to South Korea. From here, he wanted to take Li Xintong and Angelina back to Pingchuan. After Fang Mingyuan left, Angelina did not stay for a few days as she said.

He returned to Pingchuan the next day, but had been accompanying Li Xintong in South Korea. He returned to the villa, and before he could even sit on the hot seat, he got bad news. Liao Provincial Iron and Steel Group Company participated in the 2008 iron ore price negotiation.

The representatives of the Haibao Iron and Steel Group Company and the representatives of the Haibao Iron and Steel Group Company fell out at the group meeting of the China Iron and Steel Industry Association! Although there was no fight, the representative of the Liao Provincial Iron and Steel Group Company poured a glass of water on the other party's face. Fortunately,

It's not hot water!

"Isn't it just a glass of water poured over? Just compensate the other party's economic losses!" Fang Mingyuan sneered. Although he did not directly participate in the 2008 iron ore price negotiations, he has been paying attention to the progress of the negotiations.

In the 2008 iron ore price negotiations, Liaoning Iron and Steel Group Corporation, as a representative of domestic private steel companies, officially joined the negotiation team. However, whether it is the China Iron and Steel Industry Association or Haibao Iron and Steel Group Corporation, Liaoning Iron and Steel Group Co., Ltd.

The group company actually resisted joining the group, but due to the situation and public opinion, they had to hold their noses and approve the arrangement. So when representatives of the Liaoning Iron and Steel Group Company joined the negotiating team, the two

Needless to say, his attitude.

It can be said that the 2008 iron ore price negotiation was not smooth from the beginning. Last year, the three major mining companies were infamous because of the Shui Zhizhong incident, plus Liaoning Iron and Steel Group Company and Haiping Mining Company, cmm

The company signed the contract first, forcing the three major mining companies to finally bite the bullet and agree that the price of iron ore this year will be the same as in 2006. However, the price of iron ore from Changxie Mine did not rise this year, but the price of bulk iron ore

However, the price of stone still increased significantly, which made the three major mining companies extremely jealous!

Therefore, from the very beginning of the iron ore price negotiations in 2008, the three major mining companies unanimously proposed that the Changxie mine price in 2008 should be increased by at least 100%! This asking price made the friends of China Iron and Steel Company

We are all shocked! You must know that the price of iron ore at Changxie Mine has more than doubled compared to previous years. If it doubles on the basis of last year, plus the shipping fee, the cost will be unbearable. Although

It is said that the price of bulk iron ore this year is much higher than the price of Changxie mine, but it is not so outrageous!

Of course, it is impossible for the negotiation team to agree to such a high price. This is far from their psychological expectations. If the price is signed at this price, the heads of these domestic steel companies will definitely scold their mothers. You must know that domestic

It is impossible for steel product prices to fully absorb this cost increase. This means that there will definitely be a number of steel companies that will be unable to make ends meet and fall into a loss-making situation.

However, the attitude of the three major mining companies, especially the Rio Tinto Group, is extremely tough, and they can be said to refuse to give in on this issue. This has made the negotiation team extremely difficult. For some time, the BHP Billiton Group has wanted to acquire the Rio Tinto Group.

The news came one after another. First, BHP Billiton Group Company stated in early December that the acquisition conditions it provided were three BHP Billiton shares for one Rio Tinto share. This offer was 44 pounds higher than Rio Tinto's closing price at the time.

There is a premium of nearly 21%. If calculated in terms of stock market value, the above-mentioned overall acquisition offer would be equivalent to more than 140 billion U.S. dollars in cash!

Although Rio Tinto Group Company immediately rejected the offer from BHP Billiton Group Company, the impact was still very strong for the Chinese people. According to the exchange rate conversion, BHP Billiton Group Company's bid to acquire Rio Tinto Group Company exceeded RMB 10,000.

100 million yuan! This also makes many people worry about whether Rio Tinto Group will merge with BHP Billiton Group. In this case, the new company after the merger of the two may surpass Brazil's Vale to become the largest iron ore exporter.

enterprises, further exacerbating the monopoly of iron ore. At the same time, the merger of Australia's Haiping Mining Company and Brazil's CMM Company is still being pushed forward with difficulty. The Australian and Brazilian governments have set up layers of restrictions on this merger.

The review has undoubtedly aggravated the concerns of the Chinese people.

In this environment where the three major mining companies all insist on substantial price increases, the negotiation team's price negotiations with the three major mining companies are naturally difficult. Even a reduction of 1% is very difficult. And it is very difficult.

Just yesterday, a representative of Seaburg Steel Group announced that he had negotiated an 87% increase in price with Vale of Brazil. He believed that this should have reached the bottom line of Vale of Brazil. In order to avoid a new day

The iron ore company was the first to reach a higher price agreement with other mining companies. He proposed that the negotiation team formally sign a long-term iron ore price agreement with Brazil's Vale in 2008. However, the Liaoning Iron and Steel Group Company insisted that this would only

It is nothing more than price blackmail by the three major mining companies. Now that the future prospects of the world economy are unclear, the price of iron ore in 2008 can be guaranteed to be the same as last year. This is considered good, but it should not be done at all.

Such a high increase!

Both sides held their own opinions, and the result was a quarrel in the negotiation team. Representatives of the Haibao Iron and Steel Group Company accused the Liaoning Iron and Steel Group Company of having the backing of Haiping Mining Company and the Brazilian CMM Group Company, even if the iron ore price was high.

, it is just an internal digestion, changing the left hand to the right hand, and does not consider other domestic steel companies at all! It even implies that Liao Iron and Steel Group Company is selfish, hoping to push up the price of iron ore and cause losses to other domestic steel companies.

In order to seize a larger market share, the representative of Liao Iron and Steel Group Company was so angry that he threw a glass of water on the opponent's face. Not only did he wash his face thoroughly, but he also took off his clothes and the laptop in front of him.

, all wet.

"Apologise? What apology? Could it be that the other party is right?" Fang Mingyuan asked, "We have a clear conscience, why should we apologize? I didn't sue him for defamation and insulting our family's reputation. I already gave him an advantage, or did I?

For the sake of keeping the family’s ugliness in public! Hehe, you really dare to say that!”

"I'm afraid the China Iron and Steel Industry Association and the China Iron and Steel Industry Association will not let this go easily." Yu Chonghai's helpless voice came over the phone. The China Iron and Steel Industry Association and the China Iron and Steel Industry Association wear the same pair of pants.

, had we not been forced to do anything, we would not have let Liao Iron and Steel Group Company join the negotiation team no matter what.

"Huh, let's just take this opportunity to withdraw. We don't need to take the blame with them!" Fang Mingyuan said. But he knew that the global iron ore spot price in 2008 was a roller coaster.

The increase in the first half of the year was not small, but there was a big dive in the second half of the year. Even the prices of Changxie mine and spot ore, which had not happened in seven years, were upside down. Although a big reason for this was the huge cost of shipping.

fell, but the price of iron ore also plummeted, which is an indisputable fact.

This time, Fang Mingyuan believed that the prospect of iron ore would be even bleaker than in the previous life, because the domestic government had paid far less attention to the disorderly growth of steel production capacity. News had already been sent to him in the capital, and through Su Huandong

and others have made repeated efforts. This time, the intensity of controlling steel production capacity is unprecedented. It will be directly connected with the hats of provincial officials. Any steel projects that are launched without approval within the jurisdiction will be directly

If a project with a production capacity of more than one million tons occurs, it will be directly punished by the provincial leaders. Moreover, the total domestic steel production capacity in 2007 shall not exceed 20

In 2006, that is to say, if the lost production capacity is not eliminated, even these projects that have been approved for launch will not be allowed to start production. These two big moves will have a huge impact on the disorderly launch of steel plants in various parts of the country and the vigorous promotion of

For the officials, this is tantamount to a slap in the face! Moreover, it can be expected that the mergers and acquisitions of domestic steel companies will increase significantly in the future!

Steel production capacity is no longer growing in an orderly manner, and the demand for overseas iron ore will naturally decrease. However, major mining companies continue to expand iron ore production capacity. As one goes up and the other goes down, the price of iron ore continues to skyrocket.

The market conditions no longer exist, and iron ore naturally has no motivation to continue climbing higher.

Under such circumstances, it is undoubtedly extremely inappropriate for the negotiation team to sign an agreement to increase the price of iron ore by more than 80%. However, Fang Mingyuan also understands that even the China Iron and Steel Industry Association and Haibao Steel Group Co., Ltd.

They are also aware of this news, but without knowing that the demand for iron ore will be greatly reduced in 2008 due to the weak global economy, they certainly do not have the courage to fight with the three major mining companies. After all, the current spot iron ore

The price is still much higher than the price of Changxie mine. Although the price of Changxie mine is rising every year, compared with private steel companies in spot trade, the cost of those steel companies that can sign the Changxie mine agreement is still high.

Possessing a certain advantage, many companies have even made a lot of money by selling the Changxie Mine to domestic private steel companies. This situation has been going on for five or six years, how dare they give up signing the Changxie Mine?

Huge risk to ore prices?

This is the huge difference caused by information asymmetry!

"Is...is this good?" Yu Chonghai was shocked. He did not expect that Fang Mingyuan would actually propose such a plan.

"We may be more passive in the short term, but in the long term, it will be beneficial to us. This kind of blame must not be taken!" Fang Mingyuan said categorically. (To be continued.)