Chapter 409: The International Reservoir
Wang Hongsheng and others stayed in Pingyuan for one night, and left one after another the next morning. Qin Hai, Ning Zhongying, Song Hongxuan and others bid farewell to these officials one by one, and stuffed the trunks of the officials' cars with Pingyuan's souvenirs, which is of course not a bribe, and officials at this level will not care about this souvenir, it is just a show of human contact.
For a whole morning, Qin Hai and the others were smiling, shaking hands with all kinds of people, saying compliments to each other, showing reluctance. After sending the last batch of guests away, Qin Hai felt that his face was a little cramped, and his palms showed signs of numbness.
"Oh, what a bother."
Half-lying on the big sofa in Ning Zhongying's office, Qin Hai sighed with boundless emotion.
"If the group is established, there must be a ceremony, or it will be unclear." Song Hongxuan poured a glass of water for Qin Hai, then sat next to Qin Hai and said with a smile.
Ning Zhongying sat on another sofa, calm and relaxed. He has experienced a lot of this kind of pick-up and delivery, and he doesn't feel any trouble. However, seeing so many senior leaders at once made him feel quite excited, and he was full of confidence in the prospects of the group. He kicked Qin Hai's long outstretched foot with his foot and said, "Xiao Qin, sit up, you are also a chairman now, you have to pay attention to your appearance." â
Qin Hai sat up straight embarrassedly and said with a smile: "In front of the two of you, what else do I need to pretend, it's not that you don't know who I am." â
"Xiao Qin, Director Wang called you to his room last night and told you something?" Song Hongxuan is a practical person, and after a few words of gossip, he got to the point. Ning Zhongying had obviously been pondering this issue as well, and heard Song Hongxuan say this. also put away his ridiculous expression and set his eyes on Qin Hai.
Qin Hai sighed lightly and said, "I'm also about to talk to the two of you about this matter, and it's really a troublesome matter to talk about, but I've already accepted it." I'm afraid we'll have to discuss what to do. â
"Say it." Song Hongxuan sat down at the desk, took out a notebook and pen, and prepared to start recording.
"The state will gradually abolish the unified distribution and marketing of most production materials in the next two years, which means that the prices of means of production will be fully liberalized, Director Wang would like to hear my views on this matter." Qin Hai said.
Ning Zhongying frowned and said, "This is a big deal, if you don't get it right, the economy will be chaotic again." â
That's why he said "again". It is because at the end of the 80s, when the state liberalized the prices of light industrial products, it caused a round of large price increases, which had a great impact on the economy. Now that we need to liberalize the prices of heavy industrial products, the impact of this will be even more conceivable.
Song Hongxuan thought for a while and said: "The matter of liberalizing the price of means of production has been talked about for a long time. I guess the country will definitely have to take this step. In the case of our steel mills, the state plan price is too low. The impact on our steel mills is huge, we don't have enough profits, we can't expand reproduction, and the end result is that the supply of steel continues to be tight. I think, let go of the price, in the long run. It should be a good thing. â
Ning Zhongying said: "Of course it's a good thing, if you don't let go of prices, who wants to engage in heavy industry?" The point is that if the control is not good, the liberalization of prices will bring about an overall price increase. The common people have a hard time. If there is really another turmoil, what will the country do? â
Qin Haidao: "Director Wang is also worried about this problem. The state's intention was to build up a reserve of the main means of production before the price reform, so that in the event of a panic in the market, the goods could be sold off and prices could be stabilized. â
"This idea is right, the big capitalists in Pujiang at the beginning of the liberation wanted to hoard materials and disturb prices, and our country defeated them in this way." Ning Zhongying said with great interest.
Qin Hai smiled bitterly: "It was back then, and now it's now." At that time, the country used the strength of the whole country to deal with a Pujiang River. Now it's a national problem, and there are a lot of supplies needed. Director Wang and I preliminarily calculated that the country needs to prepare at least 100 billion yuan of materials to be able to stabilize prices. â
"That's a bit conservative." Song Hongxuan said that he pays more attention to macroeconomic issues on weekdays, and although he does not have ready-made information at hand, he can roughly estimate the size of the entire country's economy. In his opinion, to establish a material reserve that is enough to turn things around, 100 billion yuan may be overstretched.
Ning Zhongying asked, "Xiao Qin, what does Director Wang mean by telling you this?" Does he want our Daqin Group to help the country pay for it? â
Qin Haidao: "He didn't let us contribute, he just asked us if we could help store some materials so that they could be put on the market when needed to help the country share some of the pressure." â
"What to reserve, and in what quantities?" Song Hongxuan asked.
Qin Haidao: "The main material produced by our group is steel, Director Wang hopes that we can reserve some steel, the quantity is ......?"
Speaking of which, he was a little embarrassed. 10 million tons, this is the number he promised Wang Hongsheng, but he believes that once he says this number, Ning Zhongying and Song Hongxuan will go berserk. In fact, Wang Hongsheng did not intend to hope that the Daqin Group would bear such a big obligation, and this matter was completely caused by Qin Hai's enlightenment.
"Director Wang wouldn't want us to reserve 1 million tons, right? That's what a strong man does. Song Hongxuan looked at Qin Hai's uncertain face and guessed timidly.
Ning Zhongying shook his head decisively: "If it was only 1 million tons, Xiao Qin would not be so embarrassed." I think the numbers are more than that. â
"Sure enough, Director Ning is more wise." Qin Hai slapped Ning Zhongying on the back, and then said, "Director Wang just made a request, hoping that we can make some contributions. It was I who offered to take on 10 million tons. â
"Are you alright, Xiao Qin!" As Qin Hai expected, before his words fell, Song Hongxuan jumped up. His eyes stared straight at Qin Hai, trying to find a trace of joking on Qin Hai's face.
Ning Zhongying was not so excited, maybe he had experienced too many things in his life, and the more he felt incredible, the calmer he became. He looked at Qin Hai and said slowly: "Xiao Qin, what are you going to do, let's say it together, I believe that you are not a person who talks about it." â
"Old man Shengming." Qin Hai smiled and said, "I thought about it carefully and felt that this number was something we could do, so I replied to Director Wang like this." Director Ning taught me that the icing on the cake is like charcoal in the snow, when the country is in difficulty, let's reach out to help, and the benefits that can be obtained are the greatest. On the contrary, if the affairs of the country are all smooth, whether we are all the same, we don't have to rush to offer hospitality. â
"You're right, if we do a good job in this matter, it will be the biggest help to our group in the future." Ning Zhongying said approvingly, "However, 10 million tons of steel, according to the billet, is 100 billion, according to the wire rod, at least 200 billion, how can we get it?" Xiao Qin, what do you think? â
Song Hongxuan also calmed down at this time, with his experience of working with Qin Hai for so many years, he could also guess that Qin Hai should be confident that he would take on such a seemingly impossible task. He couldn't help but be a little curious, wondering what Qin Hai could do to do this.
Qin Haidao: "If we want to establish an inventory of 10 million tons of steel, we will definitely not be able to do it." Convert more than 10 billion yuan of working capital into inventory, and our group will basically collapse. My thinking is whether we can build a dynamic reserve and use the international market as a reservoir. When the domestic market does not need so much steel, we will sell the steel abroad, when the domestic steel is tight, we just give up the international market and turn back to the domestic market, we can provide sufficient supply. What do you guys think of this idea? â
"International Reservoir?" Song Hongxuan's eyes lit up, and he immediately understood Qin Hai's thoughts.
Qin Hai's plan is very simple, to put it bluntly.
First of all, Daqin Group needs to expand its own production capacity, such as expanding the current production capacity of 1 million tons to 5 million tons, or even more. This matter is actually something that Qin Hai and Song Hongxuan have been discussing, if it weren't for the lack of digestion capacity in the domestic market, they would have established a new blast furnace and continuous casting and rolling production line.
After expanding the production capacity, Daqin Group can start production at full capacity. At this time, due to the lack of domestic steel market demand, these excess production capacity can not be digested in China, but can be transferred to the international market to digest, that is, the produced steel is sold abroad. As long as the steel produced can be sold, there will be no problem of zĂ i occupying working capital, and the group will not have much pressure.
When the price reform is launched and the price of steel in the domestic market soars, the group can stop the supply to the international market and shift its production capacity to supply the domestic market. If the original annual sales of 5 million tons abroad are now turned to China, it is equivalent to an increase in the supply of 5 million tons in the domestic market, which can play a significant role in stabilizing prices.
This truth is very simple to say, but there is an important link that cannot be avoided, that is, whether Daqin Group's steel can be sold in the international market. The steel industry is a typical capital-intensive and technology-intensive industry, China lacks both capital and technology, and has no advantages in steel production, so it is difficult to sell steel abroad, let alone sell as many as millions of tons a year.
How did Qin Hai consider this obstacle?
Thinking of this, Song Hongxuan couldn't help but cast a puzzled gaze at Qin Hai. (To be continued......)