Chapter 393: Iron Ore Negotiations
Huatou has assets of more than 200 billion US dollars, even in the world, it is a top existence, Galaxy Capital wants to invest in the UK, how can it have so much money, looking for wrongs, no, it should be a routine operation to find generous investment talents. Zhou Shi, who has maintained a good relationship with Huatou, will of course contact Gao Xiqing.
"It's a bit difficult," Gao Xiqing said embarrassed
"What's the matter, Huatou is not going to increase overseas investment, I heard that you have also bought a lot of shares of Apple, Microsoft, Amazon and other companies. "Zhou Shi
"Do you know what stocks we buy?" Gao Xiqing asked in surprise, their shareholding ratio was not to the extent that it had to be disclosed.
"There are basically no secrets in the operation of Huatou in the secondary market in the United States," Zhou Shi explained, Wall Street is full of vigilance against the newly established giant of Huaxia, and no one dares to guarantee that Huatou, which has huge funds, will not mess around. It remains to be seen what impact CTIC's participation will have on the world's financial markets. It is reasonable to attract everyone's attention, but it is still related to the current network of Galaxy Capital.
Although no one invited Lu He to join the Biedberg club, some other top private clubs were open to wealthy people like him.
Gao Xiqing didn't refute when he heard this, but the assessment of Zhou Shi's ability has to be improved a lot, and the status of Europe and the United States is often proportional to the resources controlled by this person, and it seems that Zhou Shi's wealth may not only be so much on the surface.
"Our investment focus is on energy, minerals. What Gao Xiqing didn't say was that they believed in the Blackstone Fund more than Galaxy Capital. Although Blackstone has made a lot of money for them, there are still people who have whitewashed Huatou, saying that Huatou invests in Blackstone not for stock income, but for Blackstone's asset management, investment appreciation, and income generated by financial advisors. It seems that if Blackstone does not buy Blackstone's shares, Blackstone will not provide services for Huatou, which is simply shameless to the extreme.
"Energy and minerals?" Zhou Shi didn't know much about this information.
"Yes, the iron ore negotiations are not going well, and all kinds of resources will rise as soon as we need them. Gao Xiqing said worriedly
MD, Zhou Shi thought what was going on, it turned out to be an iron ore negotiation, I think Zhou Shi was also indignant when he saw the news on the Internet, and felt uncomfortable for the oppression of overseas monopolies in China, and then he knew more to understand that things were not as simple as reported by domestic media.
At present, there are hundreds of iron and steel enterprises in the country, and most of the enterprises that have the right to import iron ore are state-owned enterprises, and a large part of them are steel trading enterprises. In recent years, with the improvement of the economy, the price of iron ore has risen all the way, and the enterprises that have the right to import according to the long-term agreement price to buy ore, because the long-term agreement price of iron ore is much lower than the spot market, they can earn hundreds of yuan a ton at will, while the iron and steel enterprises without import rights or insufficient quotas have been purchased according to the spot market price. With the increasing impact of the financial crisis, the spot market price of iron ore is now much lower than the long-term agreement price, so a large number of steel trading companies have defaulted. However, the three major ore companies have not really resorted to law, on the one hand, there are other domestic companies to take over, hoping to join the long-term agreement price in the future, and on the other hand, it is also because of the complex background of these people. It makes it difficult for the big three, who are well aware of the domestic situation, to deal with it in accordance with the law.
The domestic long-term agreement price is different from the long-term agreement price of Japan and South Korea, and this difference is not the price, but the transaction partner. Japan and South Korea are facing most of the steel companies that have real needs, while most of the domestic steel companies are privileged people who want to make money. 09 years of this iron ore negotiations, they irrationally asked for low prices, originally saw the domestic trillion after the launch, the demand and price of steel infrastructure will rise, the reality is also the case, this year has passed five or six months, the domestic demand for iron ore has been rising, and the Huaxia Iron and Steel Industry Association presided over the negotiation also this time but strongly insisted that the three major iron ore companies must have a greater price reduction.
Zhou Shi is not good at speculating on their intentions with the greatest malice, perhaps their level is limited! If nothing else, a far-reaching espionage incident will break out later, and four employees of the Shanghai office of Australia's Rio Tinto Group have been arrested in Shanghai on suspicion of stealing Chinese state secrets. Among them is Hu Shitai, general manager of the office and head of Rio Tinto's iron ore division's Huaxia operations. Then Laigang and Shougang each had a person in charge of iron ore imports arrested. The Huaxia Iron and Steel Association, which is responsible for organizing iron ore negotiations, also has a number of people who have been "reviewed" by the relevant departments.
Commercial espionage is everywhere, and it is still rare to find such a fuss in China.
After the espionage case, the long-term agreement mechanism of iron ore prices was broken and became more closely related to the spot price, which is also the harvest brought by the espionage case. In fact, this is the return to normal, the vast majority of global commodities are priced through commodity exchanges, futures and continuous spot, etc., and the long-term agreement mechanism of iron ore itself is unreasonable. This is nothing more than a two-track price system made by the privileged class for their own benefit.
The ultimate determination of iron ore prices is demand, Huaxia has become the world's factory, the outbreak of real estate development and the automobile industry on the demand for steel is the internal reason for their price increases, after the domestic trillion investment effect has passed, the global economy is still weak, coupled with the domestic demand for environmental protection, steel companies have stopped production in a large area, at that time the iron ore prices of the three monopoly giants have fallen again and again, which is also the impact of the Chinese factor.
"How much does Mr. Gao think the price of iron ore should drop?" Zhou Shi
"The price insisted on by the Huagang Association is reasonable!" Gao Xiqing said after thinking about it
"Really?" Zhou Shi looked at him strangely, could his level really be like this?
"Oh! Mr. Zhou thinks this price is not appropriate?" Gao Xiqing
"Mr. Gao, after you say trillions, will there be a big release of Huaxia's demand for steel?" Zhou Shi
"We calculated that even if the domestic demand is large, the price of iron ore will not reach the level before the financial crisis!" Gao Xiqing
When Zhou Shi heard this, he was a little gloomy and a little moved, but unfortunately, if there is a good reference standard for iron ore prices, Zhou Shi can make good use of financial tools and make a lot of money from this group of stupid forks. Since the second half of this year, the price of iron ore has begun to rise wildly, and it can double in less than a year. How can you use leverage to earn 2 or 3 times effortlessly.
"I don't think so, you underestimate the effect of trillions. Zhou Shi returned to the previous topic and briefly talked about some of his own judgment basis.
"Unfortunately, this matter is not in our hands, otherwise we would have negotiated in advance. Gao Xiqing didn't know if he really believed Zhou Shi's judgment, so he said
"That's not necessarily, judgment based on prediction can't compare to the cruelty of reality, not to mention that as soon as the espionage case came out, our negotiations became more passive. "Zhou Shi
"Espionage case, what espionage case?" Gao Xiqing
"Uh~~" Zhou Shi accidentally said for a while.
"Rio Tinto's Hu Shitai, many domestic steel manufacturers and the China Iron and Steel Association have fornicated with them, revealing the bottom line and strategy of domestic negotiations. Other companies may also have commercial espionage involved, but this is all grapevine. "Zhou Shi
"Oh, that's trouble!" Gao Xiqing
"Well, it's quite troublesome!" Zhou Shi
(End of chapter)