Chapter 581: Business Comes to the Door!

Since mankind entered the era of great industry, coal and oil, which are responsible for power, and steel and plastics, which are the basic raw materials for industrial production, have become the main criteria for measuring strong countries.

If oil is the blood of industry, then steel is the skeleton of industry, in the last century, predicting a country's war potential, as long as the country's oil reserves and steel production can be judged more accurately, although after entering the information age, the importance of silicon wafers exceeds steel, but as a large country, how much steel is still an important military and national strength indicators.

Huaxia, which has been humiliated by foreign steel weapons, has a desire for steel that is difficult for outsiders to understand, and the goal pursued by successive national leaders is to increase national steel production.

The main reason for achieving this goal is also because of the accelerated development of domestic industrialization and urbanization, and the demand for steel is very urgent.

Large steel mills with a domestic output of tens of millions of tons have sprung up like mushrooms after a rain, and the top Baosteel and Shougang are even ready to challenge the new target of producing 100 million tons per year, and the world's largest steel mills will appear in China sooner or later, which is a consensus that there is no suspense in the international steel industry.

But the steel country does not mean that it is a steel power, in aviation, automobiles, packaging and other high value-added steel products, the country has been with the world's advanced level has a gap, now many domestic steel mills are in the pursuit of mass production of cheap and low-grade steel, rather than hard work.

These large state-owned enterprises in China are like this, not to mention other private enterprises, are desperately relying on expanding production capacity and lowering the price of steel to seize the market, and the quality of the steel produced can be imagined.

Just want to rely on the import of iron ore to make easy money, not based on the domestic reality of high manufacturing technology, this kind of unenterprising business ideas will sooner or later make many domestic iron and steel enterprises suffer a big loss.

It's just that the huge domestic market is just in demand for steel production, and some infrastructure projects and processing industries are not particularly demanding on the quality of steel, and many domestic enterprises can still maintain certain profits.

Because of the particularly large steel production, many large domestic iron and steel companies have begun to represent domestic iron and steel enterprises to participate in global iron ore negotiations.

The global iron ore price is determined based on the contract price agreed between the three major international iron ore producers and the major steel producers. This pricing system has been running since the eighties of the last century, according to the convention, starting from the fourth quarter of each year, the world's mainstream iron ore dealers negotiate with their major customers to determine the price of iron ore in the next fiscal year.

However, with the rise of the Asian economy, Asian steel mills, represented by Nippon Steel, have gained a greater voice, and the negotiation mechanism has also changed.

Huaxia has now become the world's largest importer of iron ore, and last year Baosteel began to participate in Asian iron ore price negotiations as a representative of the domestic steel industry.

The negotiation pattern will be three-on-three, that is, Australia's BHP Billiton, Rio Tinto and Brazil's Valsui, against the demand-side Baosteel, Nippon Steel and European steel mills, and the supplier side and the demander side will negotiate in a cross-catch form.

Yang Jie is not optimistic about the prospects of the domestic iron and steel enterprises to meet the iron ore giants, the domestic steel industry is large and scattered The status quo has weakened the negotiation strength of domestic steel mills, although the number of iron ore imported by China accounts for nearly half of the world's iron ore seaborne trade, but these imported ore indicators are scattered in the hands of hundreds of steel mills, far from meeting the needs, the result is fierce competition and infighting, and the chaotic market order is easy for the negotiation opponents to break.

Huaxia's Iron and Steel Association has repeatedly asked steel mills to self-discipline and fight collectively without negotiating with the three major iron ore producers alone, but every year a small number of steel mills secretly sign spot purchase contracts with iron ore producers, which greatly encourages the determination of iron ore producers to raise prices.

Another Japanese and European steel mills have long-term investment cooperation with iron ore producers, and most of the price increases are left-handed for right-handed, and the investment income brought can partially offset the increase in iron ore procurement.

And more importantly, Japanese and European steel mills are basically based on the production of high-end steel, with high added value of products and strong ability to withstand iron ore price increases, which is not available to the vast majority of domestic steel mills.

Those iron miners will always bypass Huaxia and reach an agreement with Japanese and European steel mills with less resistance to negotiations, and the price reached is often higher than Huaxia's bottom line, forcing domestic steel mills to accept.

Yang Jie many years ago by hiring Russian experts to come to Huaxing Group from metallurgy, metal processing, machinery and equipment has been doing research and development, and its automobiles, machinery and equipment, aero engines, and now add the aircraft manufacturing industry, the internal formation of a fairly complete industrial chain, as long as there are new technology patents, will be used in all industrial fields immediately, commercial transformation efficiency is very high.

Several metallurgical plants of Huaxing Group are relatively small in scale, but the equipment is very advanced, the number of personnel is very streamlined, and the production is high-end steel and alloy materials, which ensures that the quality of all products produced by all subsidiaries of Huaxing Group is very high, and the cost has been reduced to a very low level.

Such a model is only Huaxing Group Company in the whole of China.

Moreover, the iron ore area obtained by Huaxing Group is an open-pit mine, which is very easy to mine, although the additional beneficiation process equipment is added, but the cost is lower than that of imported iron ore, and it is not affected by the fluctuation of iron ore prices at all.

"China's iron ore has a low iron grade, and many rich ores in Australia can reach 50% to 60% iron, which can be directly smelted in furnaces. Before China's mineral processing technology is backward, before the poor ore has to enter the beneficiation refining, sintering, pellet briquetting before entering the blast furnace steelmaking, but there is no effort in the beneficiation process equipment, plus the use of rich ore can save a lot of intermediate links and beneficiation, resulting in our increasing dependence on importing a large number of iron rich ore from overseas, as a result, our steel production of the world's largest annual profit is imported iron ore in vain cut a large piece. Recently, the price of iron ore imports has started to skyrocket, and there is still nothing we can do to stop it. ”

You Jinhai looked at Yang Jie and said: "I really didn't expect that your Huaxing Group Company is working so mineral processing process equipment, and has designed and manufactured such advanced mineral processing technology and equipment. ”

Tang Jianhua said to Yang Jie: "Yang Shao, I don't know if you are willing to provide us with the beneficiation equipment and processes designed and manufactured by your Shougang?"

"Yang Shao, we Anshan Iron and Steel are also willing to purchase such a batch of mineral processing equipment from your company. ”

In addition, the heads of several iron and steel companies have also put forward the intention to purchase.

"There is no problem with this, our company can provide different beneficiation equipment and processes for domestic steel enterprises. Yang Jie nodded with a smile.

The situation of many iron mines in China is different, and the equipment used by Huaxing Group in this mining area in Gucheng County may not be suitable for other mining areas, and the equipment design of these different mining areas will be different, and it is necessary to design and manufacture according to the specific situation.

However, Huaxing Group has experience in mineral processing technology and equipment, and these problems are not particularly difficult for the company.

Previously, Huaxing Group designed and manufactured these mineral processing equipment to meet the company's own needs, and did not think of selling this equipment to other domestic steel enterprises, but since these large domestic steel enterprises have put forward the requirements for procurement this time, the business will come to the door by itself, and he will naturally not refuse to leave.

You Jinhai actually came here on behalf of the State Councilor to inspect the technical strength of Huaxing Group in metallurgical processing.

He has spent most of his life in a large state-owned steel mill, and he is also a prestigious figure in the steel industry.

Now after Huaxing Group Company undertook the research and development of special steel for aircraft carriers, You Jinhai noticed the strong technical strength of Huaxing Group Company in metallurgical processing.