Chapter 108: Steady Profit and No Loss

There are several reasons why the price of Qinhai's steel is surprisingly low compared to that of steel on the Japanese market:

One is that the source of raw materials is different. Generally, steel mills use special alloy materials to smelt alloy steel, and their prices are relatively expensive. Qin Hai uses alloy scrap steel, which is equivalent to using the price of scrap steel to obtain alloy materials, and the cost is greatly saved.

The key to smelting alloy steel with alloy scrap is to accurately calculate the ratio of various scraps, which is a huge amount of work. Ordinary steel mills do not have such talents, and it is not worth doing so. Qin Hai is different, he hired a group of engineering students to do such calculations, and the students regarded this work as the content of professional internships, and Qin Hai's actual labor cost was very low.

The second reason, which is also related to labor, is that the wages of Japanese steelworkers are very high, while the wages of Chinese workers are only a fraction of that of Japan. The steel industry is a capital- and labor-intensive industry, and labor costs account for a considerable proportion of steel costs. In this regard, Qin Hai has another cost advantage.

The third aspect is the value of knowledge. Special alloy steel is so expensive, and a considerable part of it is the value of technology. The development of a steel formula in a steel mill requires a large amount of investment, which is spread into the final product. Some steel mills, after mastering special formulations, adopt the method of skimming pricing in order to make excess profits, which also leads to the inflated price of special steel.

The alloy steel formulas that Qin Hai proposed came from his own knowledge, or from the cheating of the traverser. There is almost no cost. In this regard, he is sure to win the price war with other steel mills.

With these three reasons. It is not difficult to understand that Qin Hai can provide special alloy steel at a very low cost. In Qin Hai's plan, these alloy steels will dig the real "first pot of gold" for him.

"Are you going to supply Japan with special alloy steel?" Kunio Kishida was shocked by Qin Hai's plan. Japan in the 80s. It is the country with the highest steel production in the world and the country with the most steel exports. Even if there are some special steel products that need to be imported, Japan's import sources are also developed countries such as Europe and the United States, how can it be imported from China, which is technologically backward?

However, the current situation does not allow Kishida Kunio to question, the military shovel in his hand, roughly speaking, the material performance has indeed reached the level of some ultra-high-strength alloy steels in the Japanese market, and Qin Hai said conclusively that the price can be reduced to half of the Japanese market. This means that the agent can get at least 30% of the sales profit.

It is the consensus in the industry that the profits of special steel are high, but these high profits have always belonged to the steel mills, and only a small part will be transferred to agents. If Qinhai's steel mill is willing to give up such high profits, then why shouldn't Fukuoka Kaisha be this agent?

This is just like what Qin Hai said to Jun Nakamura a few months ago: What is profitable, why not do it?

"Mr. Kishida, don't worry, I still have some goods here, and I would like to ask you to appraise them as well."

didn't wait for Kunio Kishida to come back to his senses. Qin Hai spoke again. He unhurriedly moved a few pieces of steel from the cart pushed by Miao Lei and placed them on the ground in front of Kunio Kishida. Kunio Kishida involuntarily squatted down and carefully observed the steel, and his expression became a little strange.

"This is highly wear-resistant steel. Under strong impact, the surface hardness can be increased from 200 HBW to 500 HBW, and the hardened layer depth reaches 10 mm. However, the core still maintains the austenite structure......"

"This is a heat-resistant steel with a limit time of not less than 8000 hours for 1% creep at 700 degrees Celsius......"

"It's corrosion-resistant steel ......"

"It's ......"

Qin Hai introduced the properties of each steel sample to Kunio Kishida. These samples were all smelted by the workers in his busy spare time a few days ago. After inspection, these samples have reached the international standards of some high-grade alloy steels. And the cost is only a few percent of others.

In Qin Hai's mind, there are many steel formulas and corresponding heat treatment processes, and under the guidance of these knowledge, he only needs a little test to produce special steel that basically meets the requirements. It is important to know that the development of iron and steel smelting technology is very rapid, and some of the most common techniques in later generations are enough to make people feel amazing in the mid-80s.

"All of this is smelted in your steel mills?" Kunio Kishida couldn't believe it.

The price of special steel is more than ten times or even dozens of times that of ordinary steel, but at the same time, the demand is much smaller than that of ordinary steel. This kind of niche steel, large steel mills generally have no time to care, most of them are provided by some small steel mills that specialize in smelting special steel.

In Japan and other Western countries, small businesses that make a living by smelting one or two types of specialty steel abound, and Kishida has seen a lot of it. However, it is rare for a steel mill like Pingyuan Iron and Steel Plant, which uses an outdated electric furnace from the 60s, to smelt seven or eight types of special steel at the same time, and the performance of each special steel is comparable to similar products on the market.

When Qin Hai introduced these steel varieties, he reported some key indicators to Kunio Kishida. Based on Kishida's understanding of Qin Hai, he knew that these indicators that Qin Hai said should not be exaggerated. If the performance of these materials can really reach the level that Qin Hai said, then it is completely possible to find a market in the Japanese market.

Considering the level of Qin Hai's previous quotations...... Kunio Kishida's heart couldn't help but jump a little. He had a hunch that his harvest in this dilapidated steel plant might be even greater than the harvest in the morning at the Blue Point Plant.

"How about it, Mr. Kishida, are you interested in our steel plant now?" Qin Hai expected Kunio Kishida's reaction. In fact, he himself knows that it is very abnormal for so many special steels with excellent performance to appear in such a small steel plant at the same time, but with his current situation, how can he stand out if he does not do something abnormal?

Kunio Kishida is a veteran of shopping malls, and after a brief period of stunned, he regained his senses. He asked, "Mr. Qin, what is the selling price of these steels?" ”

"To be honest, I don't know the price of similar products in the Japanese market at the moment, which is why I wanted to work with Mr. Kishida. I can promise that I will be able to supply Fukuoka Kaisha at 50% of the price, regardless of the price of similar products in the Japanese market. Qin Hai said.

Kunio Kishida smiled dumbly, Qin Hai's way of quoting is really ridiculous, but he is also extremely confident. It is ridiculous to say that he is ridiculous because he does not have a benchmark price of his own at all, and it is completely halved according to the market price. In this market, apart from those who are interested in smashing the field, who else can offer like this? He is confident because he can be sure that his cost must be less than 50% of the market price, so no matter what the actual market price is, he will make a profit selling at 50% of the price.

"Mr. Qin, I like your frankness very much." "Kaisha has business with many Japanese manufacturers, and I think they will be interested if your steel performance indicators are good and the price is attractive," Kishida said. ”

"Then let's settle it, please ask Mr. Kishida to understand the relevant sales channels for us." Qin Hai said.

"It is a great honour to work with a young talent like Mr. Qin, who has both technical and business acumen." Kunio Kishida said. There is no need to turn around the corner in the dialogue between smart people, and it is actually more effective to communicate directly about things that are profitable for everyone.

"Leizi, you pack up the samples of these steels and the test reports we made, and let him take them with him when Mr. Kishida leaves." Qin Hai turned his head and instructed Miao Lei.

"Understood!" Miao Lei replied loudly, his heart full of ecstasy. Qin Hai has discussed with several of them about the sale of special steel, according to Qin Hai, such special steel, can neither find buyers in China, nor sell at a high price, if you want to make a lot of money, you can only open up the international market.

When Qin Hai said this, Miao Lei, Ning Mo, and Yu Haitao were all a little skeptical, feeling that the development of the international market was too far away from them, and the foreigners' skills were so advanced, would they still buy the steel they used to make with a few backward electric furnaces?

Now, the scene in front of him has completely convinced Miao Lei, Qin Hai has such a ability, he can invite foreign guests to the steel factory, and with just a few words, let the foreign guests agree to go to Japan to help sell their steel, this is simply the ability to turn stones into gold.

After talking about business, Qin Hai then accompanied Kunio Kishida around the rest of the steel plant, looking at the abandoned iron-making blast furnace and the two hills of waste ore and slag behind the blast furnace. Kunio Kishida was quite interested in the slag mountain, he picked up a piece of slag from the ground, looked at the sun for a long time, and didn't know what Lu Dao was thinking. Qin Hai followed him and asked, "What, Mr. Kishida, you also have research on slag?" ”

"Oh, no, I'm just looking around." Kunio Kishida said. After that, he threw the slag in his hand casually, clapped his hands again, and then said: "Okay, the business matter has been discussed, I now formally request to visit your family, I hope Mr. Qin can agree." ”

"Very welcome." Qin Haidao, "My father is waiting for your visit at home, and my sister has prepared a table of meals just to entertain you. ”

"Oh, that's so thankful." Kunio Kishida exaggeratedly said, "I'm eager to taste Chinese home-cooked food right now." (To be continued......)