Since the end of the last century, international iron ore has been rising. It is not surprising that China's economy has successfully transformed from a planned system to a market system, shaken off the impact of the Asian financial crisis, and gradually entered the fast lane, with infrastructure construction heating up and a large increase in demand for steel, cement, petroleum, and other materials, which inevitably led to the rise in the price of global resource products.

Then, the news from South America that Wang Zheyi came was that the two iron ore giants intended to adopt a price alliance to greatly increase the price of iron ore, and the maximum increase could reach more than 70%. The price of any commodity that rises by 70% within a year cannot be said to be a normal phenomenon, and can only be explained as a naked blackmail.

There is certainly a reason why Vale and BHP Billiton have been able to open their mouths like this. The two companies monopolize more than half of the world's iron ore trade, and they produce high-grade iron ore that is far superior to China's domestic ore, on which the Chinese steel industry is highly dependent. In other words, people have stuck your neck, and you can only obediently obey as much as they want to exploit you.

Of course, if China's iron and steel companies want to resist, it is not without a little way, after all, doing business is a matter for both buyers and sellers, and one party has gone too far, really forcing the other party to a situation where there is no way out, and this business cannot be done. If Chinese steel companies want to break the blackmail of Vale and BHP Billiton, they need two factors, one is to have the courage to fight, and the other is to unite sincerely to avoid being broken by their opponents.

Qin Hai did not hesitate to personally go out to rectify the small iron and steel in China, contribute money and technology, tie the small iron and steel enterprises around him, and establish the National Iron and Steel Alliance, which is precisely to deal with the current situation. But. His influence is limited to Daqin Group itself and the surrounding small steel companies, and there are other steel companies that occupy half of the country in China, and he is still beyond his reach. If these companies surrender to Vale and BHP Billiton, then no matter how tough Qin Hai is, he will be powerless.

"Old Song, how are you in contact with Pugang, Yangang, and Lin Gang, and what is their attitude towards this international iron ore price increase?" Qin Hai asked Song Hongxuan.

Song Hongxuan smiled bitterly and shook his head. said: "I've asked them all, they don't have any attitude, they are all waiting and seeing." ”

Pujiang Iron and Steel Company, Yanning Iron and Steel Company, Linxi Iron and Steel Company, etc. are all large state-owned iron and steel companies, with an annual output of more than 10 million tons, and have a considerable voice in the domestic steel market, and are also large importers of iron ore. As early as a few years ago, Song Hongxuan established a close relationship with the leaders of these steel companies, often exchanging technical information with each other, and there would be one or two regular meetings almost every year.

This time, Wang Zheyi sent back the information on the price increase of iron ore. It is directly reported to the State Economic and Trade Commission, and the Economic and Trade Commission will naturally convey this information to Pudong Iron and Steel, Yangang Iron and Steel and other enterprises. Song Hongxuan got in touch with these companies as soon as he got the news, asking them about their response strategies to this matter, but the attitudes of these companies were very ambiguous, and they all said that they needed further observation to be sure.

Daqin Group is in substantial competition with these large steel mills in terms of steel production, don't look at the good relationship between everyone on weekdays, and often have some social activities. But when it comes to the core issues of business decision-making, companies need to keep a hand on each other. Pudong Iron and Steel, Yangang these enterprises. They may not have their own considerations for the rise in iron ore prices, but they all chose to play dumb and wait to see what other companies do.

Qin Hai is also mentally prepared for this situation, he said: "Some of our companies are really insiders in the civil war and laymen in the foreign war. In the domestic market, they all want to be the boss, and various competitive methods emerge one after another. When we need to unite and unite with the outside world. They all shrank their heads, and they were really speechless. ”

Song Hongxuan said: "They also have their own abacus. Yangang has its own iron ore mines, so its dependence on imported iron ore is not so serious, and it can digest the impact of price increases; Pudong Iron and Steel overimported 20 million tons of iron ore last year, and it is estimated that it can support more than half a year. So there's no hurry. As for Lynsey Steel, I heard that they are ready to exchange coke and India for iron ore, so they are also less susceptible to the increase in iron ore prices. However, Hongyuan Iron and Steel Company, Dongyuan Iron and Steel Company and several other companies have no good means, so they can only pinch their noses and accept the price increase. ”

"I'm afraid of this kind of abacus that each has its own calculations." Qin Hai sighed, "China imports 200 million tons of iron ore a year, accounting for half of the global iron ore trade, so it stands to reason that it has a full right to speak." But everyone is fighting for themselves, and the strength can't be used in one place, and in the end, they end up in a situation where they are slaughtered by others, which is really infuriating. ”

Song Hongxuan said: "It's useless to think about this now, let's think about our strategy." According to your requirements, we have been hoarding iron ore since the year before last, and now we have almost 50 million tons, which is enough for us to use for a while. Coupled with the rectification of small iron and steel, hundreds of small steel plants across the country can basically advance and retreat with us. If we want to negotiate with Vale, we can be regarded as having some bargaining weight. However, if they are determined to raise the price and wait for us to run out of stock, we will be very uncomfortable. ”

Qin Haidao: "This kind of thing is to see who can hold on to the end, we have pressure, and Vale and BHP Billiton are not without pressure." They are engaged in mining, and the ore cannot be sold, and they are also in difficulty. We have to give them the feeling that we are definitely not going to give in. If they realize that we can not rely on their ore, then they will panic and end up bowing to us. ”

"You're right." Song Hongxuan nodded and said, "We have spent so much effort on the layout, and it is time to test the effect." How about it, let's talk about how we divide the labor? ”

Qin Hai smiled: "It's still the old rule, you guard the house, and leave the errands outside to me." I will first go to the capital and determine a general principle with the Economic and Trade Commission, and then I will go to Brazil, where I will meet Vale for a while and fight with them. ”

"You can go with confidence, you don't have to worry about things at home." Song Hongxuan said confidently.

Years of cooperation have allowed Qin Hai and Song Hongxuan to have a deep tacit understanding, and they don't need to say too much to each other to know how to cooperate. Qin Hai left Anhe in a hurry and rushed to the capital with Kuroko. Song Hongxuan was not idle, he urgently summoned the directors of the group's steel mills, learned from them about iron ore inventories and orders, and asked them to prohibit them and strictly implement the group's decisions. After arranging the Group's production tasks, Song Hongxuan contacted the persons in charge of the steel mills in the "Steel Alliance" and reminded them to pay attention to the inventory of raw materials in order to cope with the possible rise in iron ore prices.

After Qin Hai arrived in the capital, he went directly to the Economic and Trade Commission without delay and found Cui Hongchun, deputy director.

"I knew you were coming." Cui Hongchun was not surprised by Qin Hai's visit, he asked the secretary to pour Qin Hai a cup of tea, and then sat down on the sofa with Qin Hai, and said, "You are here for the iron ore matter, right?" ”

"Director Cui is wise." Qin Hai slapped a sycophant with his hand.

"What kind of wisdom am I?" Cui Hongchun pursed his lips, he knew that Qin Hai's words were just a joke, so he didn't deliberately correct it, but said: "At least five years ago, you talked about guarding against the skyrocketing international iron ore prices, and now your prediction has really come true." Last time I met Director Wang Hongsheng, he also praised you for your foresight. ”

Qin Haidao: "Actually, this is a problem that everyone can see, but whether they take it to heart or not." Last year, our country imported 200 million tons of iron ore, and this year it may reach 250 million tons. If the price of iron ore rises by 70% per ton, we will spend about $8 billion more, which is not a small amount, isn't it worth paying attention to? ”

Hearing Qin Hai's account, the relaxed expression on Cui Hongchun's face suddenly disappeared. He also calculated this account, and he also felt very distressed. In fact, even if Qin Hai doesn't come to him, he will contact Qin Hai in a few days to discuss strategies to deal with the rise in iron ore prices. It is normal for the price of resource products to rise in price, but spending more than 8 billion yuan a year is a loss for anyone. The Economic and Trade Commission has held several expert seminars on this issue these days, and has also learned about the situation from its subordinate iron and steel enterprises, but there is no good solution. When encountering this kind of difficult thing, the person Cui Hongchun hopes to see the most is Qin Hai, because he believes that Qin Hai is a person who can create miracles.

"Xiao Qin, since you have seen this a long time ago, you must already have a mature set of ideas, right? Speak up and let me hear it. Cui Hongchun said unceremoniously.

Qin Haidao: "Don't hide it from Uncle Cui, our group has indeed made some preparations for this situation, including last year when I took the lead in rectifying small steel, and I also have the intention of taking precautions." If the Economic and Trade Commission can trust me and whether it can give me the task of iron ore negotiations, I will strive to control the price increase within 20 percent. ”

The price of iron ore has risen by 20% a year, which is an acceptable range in China and a relatively reasonable price increase. If Vale and BHP Billiton don't join forces to raise prices, then they should keep prices within this range, which is a price that is appropriate for both supply and demand.

Business cooperation is a win-win situation, and the fact that one party gains and the other party suffers is destined to not last long. Qin Hai planned to negotiate with Vale, and he naturally would not offer a price that was completely unacceptable to the other party, otherwise it would be impossible to negotiate. But if the other party is unwilling to accept the 20% increase and insists on increasing the price by 70%, Qin Hai will use his own combination punches. (To be continued......)

PS: I have been busy for two days, and I have handed over the materials, waiting for the feedback from the customer. Tomorrow is the end of the month, if you have a monthly pass in your hand, you can vote for it, and then you will grow hair...... Then I went to the next chapter.