Today's cocktail party is just a beginning, this time several parties gathered mainly for their interests, and now the global stock market crash has not been long ago, which has made the already relatively weak global steel market worse again, implicated by this, global iron ore prices have suffered again.

This time, not only representatives of Rio Tinto, BHP Billiton and Singapore-Malaysia Iron Ore Development Company arrived, but even the vice president of Vale of Brazil also came here.

The stock market crash directly weakened the purchasing power of various places, taking cars as an example, whether it is Bentley Group or Toyota, Volkswagen, General Motors, etc., sales in November have declined to varying degrees, especially luxury car brands, affected by this time, the development is more difficult, Li Guangyu estimates that luxury car brands will be transferred in large numbers in recent years.

When these luxury car brands want to make money, it is estimated that they will have to wait for the development of the mainland economy, and the mainland auto market will save countless luxury car brands in the future.

Due to the impact of the stock market, investment has decelerated, business expansion has also hit the pause button, unemployment has risen, and living standards have fallen, which has also led to a weakening demand for steel.

And another important reason is that the global shipping industry is in a cold winter, countless shipping groups have gone bankrupt, and many ships have been scrapped directly, which is also a big blow to the steel industry.

This time, several parties got together for only one purpose, that is, to maintain the stability of iron ore prices and avoid the resources in their hands being sold cheaply.

In a large conference room, representatives of several parties sat down, and Francie, as the invitee, first said: "Our companies are currently the world's largest mining companies, and they are also the main controllers of iron ore supply, and the current global development is very unfavorable to our iron ore industry, and iron ore prices are facing unprecedented challenges.

This time, we asked the shareholders of Singapore Malaysia Iron Ore Development Company and Xingyuan Group to come to us, hoping that the two parties can join our price alliance to jointly stabilize the price of iron ore and safeguard the common interests of all of us. ”

In the past, they forced South Korean and Japanese companies to sign iron ore supply price treaties because the three of them monopolized the vast majority of the world's iron ore exports.

And now Xingyuan Group and its subsidiary Singapore and Malaysia Iron Ore Development Company have very impressive iron ore reserves in their hands, and if they do not join this price alliance, they will not be able to achieve price setting and monopoly.

Don't think that the Japanese consortium and the Korean consortium were forced to sign such a treaty before, and they will oppose it now, it would be a big mistake to think like that, no one will be more money-worthy, they used to hate or even dislike it, but they didn't have the resources they have, and now they have such resources in their hands, of course, they also want to be able to monopolize the price, so that they can obtain greater benefits.

Although the Singapore-Malaysia Iron Ore Development Company is a multi-party joint venture, he still holds 30% of the shares and is still the largest shareholder of the company, and he also has his shares in the Heung Kong Consortium and the Hsinchu Bank Consortium.

In addition, his Xingyuan Group also has several medium and large iron mines in its hands, and the decline in iron ore prices does him no good.

Li Guangyu said loudly: "For the price alliance, I personally support it, but the price is specifically formulated, and we still need to discuss carefully, we don't want to have any say in the price." ”

Hearing that Li Guangyu agreed to join the price alliance, both Franger, Patterson and Miles Johnson, vice president of Vale in Brazil, were very happy.

As for Li Guangyu's right to speak on price setting, there is naturally no problem, if Xingyuan Group does not agree with its price, they will not be able to implement it, and to achieve price monopoly, several companies must work together.

The only thing that makes them sad is that the markets of Japan, South Korea and Treasure Island will be far away from them, and these regions will definitely give priority to the purchase of iron ore from Singapore and Malaysia Iron Ore Development Company.

In this regard, they can only sigh helplessly, the means that can be used before have been almost used, but unfortunately they still have not been able to stop the construction of supporting facilities of the Singapore and Malaysia Iron Ore Development Company, which is destined to lose a large number of orders.

However, what makes them more happy is that the huge market in the mainland has been gradually exerting force, since 1980, the import of iron ore has increased every year, although the total import volume is still relatively low, but several major mineral groups believe that with the continuous advancement of the mainland's reform and opening up, the future demand for iron ore will be greater and larger, as long as they firmly grasp this big customer, their business will not suffer too much blow.

As for the Singapore-Malaysia Iron Ore Development Company, the iron ore developed here will mainly supply the South Korean and Japanese markets and the treasure island market, even if there is a surplus, the Western Australian Steel Group needs it, and the remaining part of the production will not occupy too much of the market.

Moreover, he believes that the shareholders behind the Xinma Iron Ore Development Company will definitely not only care about the immediate interests, they also understand the principle of the long stream, and the development of iron ore is not conducive to the development of all parties, and they believe that the Xinma Iron Ore Development Company will mine according to the plan.

Parsente said aloud: "Mr. Li, the price naturally needs to be negotiated by several of our parties, and the price can only be set after we all agree on it, and you naturally have the right to set the transaction price."

This price is set to safeguard the common interests of our parties, and I hope that you will not be emotional, we are all senior management of the company and shareholders of the company, and we need to be responsible for the interests of the company and ourselves. ”

Rio Tinto is afraid that the Singapore-Malaysia Iron Ore Development Company and even Xingyuan Group will not dump them and go it alone, which will be a big trouble.

At present, several major iron ore importers, one is Japan, but Germany, the third is the United States, and the fourth is South Korea, and now their main iron ore group will set prices with several steel companies every year, and is now communicating in this regard, and the price will come out in January, and the index price will be determined after being determined.

After nearly two hours, the parties discussed the specific details, and finally reached an agreement to achieve an alliance on the price and jointly safeguard the price of iron ore and their own interests.

After the meeting, Li Guangyu specially discussed with Sumitomo Kiei, Iwasaki Toshiei, Zheng Zhouyong and others on the matters of the Marandu Iron Ore Development Company.

The group will impose internal prices on steel companies owned by several shareholders to reduce costs for all parties.

The company was originally set up with the intention of reducing the cost of iron ore for all parties, and now there is a price alliance, and if there is no internal coordination, there will be some problems with the original plan.

You must know that the largest customer of the Singapore and Malaysia Iron Ore Development Company is the Nippon Steel Company, and if the internal price is not realized, the Japanese consortium will not be able to reap much benefit at all, which will seriously violate the agreement signed when the company was established.

After several parties' discussions, the steel companies of several shareholders will purchase iron ore from Singapore-Malaysia Iron Ore Development Company at a price 10% lower than the stipulated price, so as to reduce the cost of purchasing raw materials from several parties.

As for how to operate in this regard, Li Guangyu believes that the financial will do a good job, and they only need to settle down the general plan, even if Rio Tinto, BHP Billiton and Brazil's Vale know that there is a problem inside, they will not find their trouble.

......