readx; Tough-for-tough is a portrayal of this negotiation. Pen, fun, pavilion www. biquge。 info

No one is optimistic about China, including China's own steel companies and iron ore traders, because all the situation is not good for China, and it is extremely unfavorable.

First of all, in the 2008 iron ore pricing negotiations, Rio Tinto once again strongly proposed "onshore competitiveness", and that posture was absolutely inevitable.

The core of CIF competitiveness is sea freight.

The purpose of the big international iron ore producers is to promote the spot sea freight with the long-term contract fee, and the increase in the spot sea freight will promote the CIF price of long-term agreement mines, and trigger the "follow-up" spot mine price rise.

The rise in spot ore prices will serve as a yardstick to push up the long-term agreement mine prices in the next year.

This is a tide that never recedes, wave after wave, pushing iron ore prices all the way up.

In this tide that will never recede, countless people have benefited, so although China has also invested heavily in the FFA this year, there are too many stakeholders involved, and the interests are too great, and they will never let China's plan succeed.

Secondly, due to the insufficient number of long-term mines, many small and medium-sized iron and steel enterprises cannot buy long-term mines, so they can only pour into the spot market to buy high-priced mines.

In this part of the iron and steel enterprises, the steel output accounts for more than half of the country's total output.

As a result, China has formed the world's largest and unique spot iron ore market, in which small and medium-sized steel mills, traders are involved, and even those large steel mills make a profit by reselling excess long-term ore in the spot market.

Due to the bullish trend of iron ore, a large number of iron and steel companies and traders not only buy a large number of goods from the spot market, but also do not sell after purchase, but wait for the price to sell, waiting for further price increases.

Such a consequence has contributed to the soaring CIF price of imported iron ore in the spot market, and formed a huge "gap" with the CIF price of long-term ore mines, thus increasing the difficulty of iron ore price negotiation for itself.

These two issues are entangled, interact with each other, and reinforce each other, and in the eyes of any normal person, as long as China's demand for rigid surnames exists, China is unlikely to have the upper hand in the negotiations.

The quantity is large and the price is excellent, and it does not exist in the iron ore market.

And this, naturally, has become the confidence of the international iron ore producers.

――――

Australia's bigwigs sat together, discussing iron ore and Hustai.

The faces of the big guys are a little unsightly.

In this Hu Shitai incident, they originally thought that China's arrest of Hu Shitai was false, but in fact, they pointed to iron ore negotiations.

For this reason, they have also laughed at the Chinese, thinking that the Chinese are too naïve.

Hu Shitai is nothing more than a dog, and a dog can give up at any time, even kick away. One Hu Shitai wants to exchange tens of billions of dollars in benefits, I don't know what the Chinese think.

Now, however, the big guys don't think so.

As for Hu Shitai, China does not talk about any conditions at all, it is absolutely official, and their diplomatic institutions have no contact with China's political axe.

When I say this to the Chinese, the Chinese have the same attitude, four words: act according to the law.

What do the Chinese really want to do?

――――

On May 17, 2007, the Shanghai Procuratorate initiated a lawsuit against Hu Shitai and others.

As soon as the indictment came out, Australia boiled and the Australian people were outraged.

In the indictment, the charges against Hu Shitai and others are economic espionage.

For this crime, Hu Shitai must be sentenced to 10 years in prison at the lightest, which has greatly exceeded Australia's bottom line.

Australia doesn't care about the fate of Hu Shitai's dog, they care about their own face. The Chinese prosecuting Hu Shitai on charges of economic espionage shows that they did not take these great whites seriously in the slightest.

Moreover, this is still a drizzle, and more serious is the amount mentioned in the indictment, the amount of losses caused by Hu Shitai to China.

100 billion.

According to Chinese law, the Chinese want Hu Shitai to die.

The death penalty for an Australian citizen for an economic crime is unacceptable to Australians, and if that happens, the Australian political axe will face a huge crisis.

When the time comes, how will relations with China be handled?

In fact, Australia's economy is heavily dependent on China, and Australia cannot afford to break down its relationship with China.

But the people are short-sighted, and if they don't take concrete action against China, the people won't let them go, but if the relationship between China and Australia breaks down, which will inevitably affect Australia's economy, then the people won't let them go either.

Miserable!

Finally, through extensive consultation on various aspects, the big people gradually had a little bit in their hearts and somewhat understood the meaning of the Chinese.

China is angry, if you want China to be angry, it is useless to communicate with China now; Now, the only way to do that is to accept China's terms without compromise in the iron ore pricing negotiations.

But, how is this possible?

So, at this time, the benefits of Ming Cook are reflected: no one can make any decisions, and the only decision is to delay, where to drag it is.

Australia's situation here is similar to that of the United States in Iraq and Afghanistan.

――――

The annual iron ore pricing negotiations usually end in March, but this year, it has not been concluded until June.

Originally, Rio Tinto took a step back and reduced the price increase from 90 percent to 5 percentage points.

This is already a huge concession for Rio Tinto, but the Chinese side does not appreciate it at all, and still insists that the price increase should not exceed 15%.

On June 21, the news came out, and the iron ore pricing negotiations broke through and the talks collapsed.

As soon as the news came out, the iron ore spot market immediately soared by 30%.

Seven days later, on 28 June, the Shanghai Intermediate People's Court sentenced Hu Shitai to death and the other three to life imprisonment, which could not be commuted for life.

As soon as the verdict came out, the criticism was overwhelming.

Not to mention foreign ones, the criticism at home, especially in the south, is louder and more intense.

For some, this is a verdict that makes them feel creepy, because what Hu Shitai does, they are more or less doing.

Subsequently, more people were arrested, more people were tried, and more people were sentenced to death.

For many people, this is already a nightmare that keeps them awake at night, but they don't know that the real nightmare is just the beginning.

――――

After the breakdown of iron ore pricing negotiations, the people of Yanjing ushered in a small ** that made money.

Chinese, foreign, and, of course, mainly Chinese, in order to find out the relevant countermeasures of the central government axe for the first time, at least thousands of people are stranded in Yanjing.

After the breakdown of iron ore pricing negotiations, the central government announced that the state would do everything in its power to meet the domestic supply of iron ore, and there is absolutely no doubt about this.

At this time, those who were blinded for a while and had a deep memory of the past of the central political axe began to withdraw from the iron ore market.

The opportunity was fleeting, but someone took it.

Li Qizhi is one of them.

Li Qizhi became the president of the China Iron and Steel Chamber of Commerce, and he must naturally be a steel giant, and he is the head of Shanghai Iron and Steel Group, the largest steel group in the south.

Shanghai Iron and Steel Group was founded by him.

Although there is no explicit rule, in fact, it is an unwritten rule that the steel giants of the north and south take turns to be the president of this chamber of commerce.

Coming out of the Ministry of National Resources, Li Qizhi's face turned pale, he was frightened.

Li Qizhi was frightened, not because he was afraid, but because the central political axe was really ruthless.

――――

The central government will use the national reserves, which refer not only to iron ore, but also to iron mines.

China needs too many resources, and for the sake of the strategic security of resources, it has to carry out large-scale reserves, but now, it is time to release reserve resources.

The ore reserves released by the state will be enough to meet the production needs of the country's iron and steel enterprises for two years, and at the same time, the development of domestic mines will be increased to ensure that the needs are met within two years.

As soon as this news was released, many people were dumbfounded, but they were not crazy, and they did not have the wonderful urge to jump off the building.

――――

Torture, what a torture to death.

After the central government announced the release of the national strategic reserves, I don't know how many people couldn't sleep at all.

Paralyzed, the central political axe is really lacking in morality, lacking ninety-ninenineninenine-...... The great virtue of the generation!

The central government only announced the release of strategic reserves, but did not announce the detailed rules, and this hung up an unknown number of people at home and abroad.

The price of iron ore must fall, and no one knows how much it can fall.

What to do at this time depends on feelings.

However, it is not okay to be told by others, because for many people, the stakes are too great.

In doing so, the central government has tortured to death the large and small iron and steel companies and traders who hoard iron ore, but they are nothing compared to the big international iron ore producers.

In doing so, China's political axe is really torturing not the small at home, but the big sharks abroad.

Although the domestic small ones are also tortured to the dead and alive, the interests involved are incomparable with the big sharks abroad.

Is China's political axe playing tricks again, the purpose is to take advantage of the panic psychology of the market to induce irrational surnames to sell, so that the price of iron ore diving.

Once this irrational sell-off is opened, it is not something that anyone can stop.

It's like a financial crisis, and it's largely a psychological factor.

When the financial crisis comes, the people dare not spend money, and the more the people dare not spend money, the deeper the crisis, the more difficult it is to solve, and the more difficult it is to get out of the financial crisis.

The same is true for the iron ore market, once confidence collapses, it will inevitably be a mess everywhere, miserable, and China will inevitably take the opportunity to sweep the goods.

The more goods China sweeps, the heavier the chips in your hand, and the more comfortable you are at playing this set, you can continue to play, or even play all the time.

This must not be!

If you want the iron ore market not to collapse, someone must trust the market, but the risk of supporting the market is too great, because China will definitely not be idle, and will definitely engage in wind and rain, so at this time, you must invest astronomical funds.

Paralyzed, the Chinese are really damaged!

If you have enough time, you can conduct a comprehensive survey and assessment of the amount of iron ore imported by China over the years, and then you will have a better idea of what to decide.

But, no, there is no time.

Toto or not, it must be decided immediately.

Torr!

The enterprises of the open boil country are much brighter than the decision-making of the political axe.

――――

Spectacles never seen before appeared.

The international iron ore producers and some related people supported the market, and this momentum is similar to the economic crisis that was about to break out was artificially supported and did not explode.

To support the city, it is necessary to support it in three aspects at the same time.

One is the FFA, which continues to accept funds to buy and fall, and the odds must always remain above the level of 1 to 1.

The second is the stock market, which cannot fall, such as the shares of iron ore producers and shipping companies.

The last one is the spot market for iron ore, and the price of the spot market for iron ore must be kept stable and must not cause the slightest panic.

There is no doubt that the combination of these large iron ore producers, major investment banks and financial capital is extremely powerful, not to mention the support of the United States and other national forces behind them.

This city is very good, but, although it is very good, the big people are becoming more and more frightened, because others do not know, but they know the actions of the Chinese, and the Chinese are making this game bigger and bigger little by little.

In a word, once the city is not successful, then the Chinese will have to make a lot of money, and they will be wiped out.

――――

The people of Australia will change their faces.

Yesterday, it was the most angry denunciation of the Chinese, and the wave of boycotting Chinese goods was like a sea of mountains, but in the blink of an eye, everything changed.

Now, the Australian people are talking about the fish and water situation of the Chinese and Australian people.

It was in this good atmosphere that Australian Prime Minister Kevin Rudd boarded a special plane to visit Yenching.

Kevin Rudd was followed by the president of Brazil, then the German chancellor, the British prime minister, etc., and the big names kept twisting and running towards Yanjing one by one.

The panic has subsided, because the signal is clear that as long as Rio Tinto, BHP Billiton and Vale don't go too far, China will not have to fight to the death.

Iron ore must continue to be bullish, but the increase may not be as exaggerated as before, and many traders in China are starting to buy again.

――――

Dead dead, going to die.

I don't know how many big people, their hair is falling out in a hurry, they can't understand, what the Chinese want to do? Everything is illogical.

In fact, Rudd's visit to Yenching ended up in vain.

Rudd did want to take a step back, and his bottom line was that iron ore pricing in 2008 would increase by 55 percent.

This is undoubtedly a big concession compared to the position taken at the time of the negotiations, but Rudd did not expect that the conditions proposed by China would be to sign a 10-year contract, and it would be signed at the 2007 price.

How is this possible?

After Rudd returned, everyone thought that China would make a move to raise the cost of their support city, but no, the Chinese did not react, and the Chinese did a better job of secrecy than they did.

What they don't understand the most is that China's small and medium-sized steel companies and traders have started to buy goods from the spot market again.

Although the incoming volume is not as good as before, this is normal.

The most abnormal thing is the Chinese political axe.

As the time approaches, the more the hair of the big men falls, and the Chinese political axe is too calm.

――――

November 11, 2007, this day is destined to be remembered by many people and unforgettable.

On this day, the Ministry of National Resources announced the detailed rules for the release of strategic reserves of iron ore.

The supply of iron ore is unlimited, but all iron and steel companies that purchase strategic reserves of iron ore must be subject to the supervision of the political axe, and all products are priced by the political axe.

None of this is fatal, but the price of iron ore from the released strategic reserves: seventy dollars a ton.

As soon as the news was announced, a wave of suicides appeared.

The price of a long-term mine is $130 per ton, and the spot market is $260 per tonne.

This is definitely an atomic bomb, and a hydrogen bomb of the 10-million-ton scale!

Of the nearly 7,000 iron and steel enterprises, no less than 3,000 have closed down, and more than 2,000 have suffered heavy losses, but they can barely sustain themselves.

150,000 traders are the hardest-hit areas, and they are like cutting leeks and going bankrupt.

And that's just the beginning.

All economic sectors are closely linked, and the steel industry has been blown up by tens of millions of tons of nuclear weapons, and some fields are unlikely to be better.

The worst implicated are of course the banks, the banks that give loans to traders and steel companies. Moreover, the blow to the banks is not just this sledgehammer, there is another sledgehammer.

This other sledgehammer is real estate and the stock market.

In recent years, real estate and the stock market have been called a fire!

Housing prices and stock prices are like taking a plane, rushing upwards.

This time, the central government axe set the price of iron ore so low, which naturally brought down the house price and stock price.

The most important word for housing prices and stock prices is "speculation".

Since it is speculated, it is not the real price, so the house price and stock price can be speculated to the sky, and when it comes down, it will naturally plummet.

Moreover, the Chinese know that the political axe is so "nonsense", naturally there will be a purpose of the political axe, and this purpose, the housing market and the stock market are the first to bear the brunt.

On the same day, the stock market all fell to the limit, and the housing prices reacted slowly, but immediately after, the central political axe did not react, as if nothing had happened.

At this point, the fool also knows the attitude of the central political axe, so the housing market and the stock market have all plummeted and gone hand in hand.

――――

Lin Manshan's face was a little pale and frightened.

Although you are one of the Big Nine, he doesn't know many secrets, and he doesn't know this iron ore war from beginning to end.

The Lin family escaped the catastrophe, thanks to Lin Manshan's political acumen, otherwise, the Lin family would have to be implicated in it, not to mention the bankruptcy of the Lin family.

However, although he escaped a catastrophe, the losses were still extremely heavy, and the reason why this was so was all because of the greed of his eldest son Lin Xiaocheng, who only listened to half of his words.

Lin Manshan felt the danger, this time, he did not hesitate, and let the third son Lin Xiaofeng replace the eldest son and take charge of the Lin family's family business.

(To be continued)