Chapter 765: Secretly storing 100 million tons of iron ore?
BHP Company Headquarters.
"Everyone, we have received the contents of the meeting of the Orientals." Wayne walked in and said to everyone: "The Orientals want to establish the China Iron and Steel Association, and all their steel imports will be carried out through the China Iron and Steel Association. "
“What?” Everyone present was stunned, and then they started to get angry.
“Why do Easterners do this?”
“They still want to join forces to lower the price for us? We would rather not sell, and we will never lower the price!”
“Their demand for iron ore is so large that only we can meet it. We are their largest supplier, and they actually want to negotiate with us? Isn’t that weird?”
"We will never accept their price." Ander said calmly. Their BHP company has a long history. What situation has it not experienced? There is no way they can compromise with the East!
"Since they are so ignorant, when they come to negotiate with us, we will increase the price by fifty percent." Ander continued to give instructions.
“That’s right, we just want to raise the price and let them know who has the final say!”
Everyone was excited.
“How about we be bolder and increase the price by 100%?”
“Yes, as long as we stop production, the price of global iron ore will rise.”
"On the one hand, we want to increase prices, and on the other hand, we also want to win over them." Wen said: "Orientals have never been of the same mind. This kind of centralized procurement is good for those large steel companies, but it will harm them. For the interests of small and medium-sized enterprises, as long as we win over those enterprises privately and give them slightly preferential prices, they will take risks."
A two-pronged approach to make the China Steel Association in the East a joke!
At this moment, Wayne's phone rang. He picked up the phone and answered it directly on the spot. He didn't care about ruining the atmosphere of the meeting. He had privileges here.
However, as soon as he heard the words inside, his expression completely changed: "What did you say? How is this possible?"
“Okay, send me an email right away!”
Everyone present was stunned, wondering what news Wayne had received. When Wayne put down the phone, his face looked a little ugly.
“Excuse me, what happened? Does it have anything to do with us?” Ender asked cautiously.
"It does matter." Wen said: "Our reconnaissance satellite suddenly discovered that a mountain of iron ore appeared near Mingzhou. Preliminary estimates are that the iron ore is about 100 million tons. Even if the Orientals completely stop importing iron, Ore can also meet the demand for a year. They can not import it for a year, but can we not export it for a year?"
Over the years, Mingzhou Group has secretly stored a large amount of iron ore!
This unexpected discovery made everyone dumbfounded.
Which steel company dares to do this?
Large steel companies can sign long-term mining contracts with iron ore suppliers. After all, since the spot price of iron ore is greatly affected by factors such as short-term demand and shipping freight fluctuations, under normal circumstances, the price of iron ore The spot price is always much higher than the long-term agreement price. Large steel companies have this advantage and can purchase iron ore at prices lower than the market price.
However, this is just a contract. It is impossible for the steel company to pay all the money at once, let alone bring back all the iron ore. The long-term iron ore mine agreement is just an agreement, and it will continue to flow slowly after that. Pay the money and transport it slowly, as long as it can be used by your own steel plant.
Only super rich people who are not short of money can play this way. When purchasing from abroad, they will purchase more. If Mingzhou Group can store 100 million tons of iron ore, it means importing it from Kangaroo Country. Starting with iron ore, we need to reserve 10 million tons more every year!
What is this concept?
Ordinary bulk carriers have tens of thousands of tons. Only Mingzhou Group can build bulk carriers of 100,000 tons. These reserves require the transportation of one hundred bulk carriers! Moreover, iron ore also needs to be purchased, which costs huge amounts of money.
However, if we look at it now, Mingzhou Group is making money.
Because the price of iron ore was low in the past few years! At its cheapest, iron ore was only a dozen US dollars per ton. Now, a ton of iron ore is already 70 or 80 US dollars. Even if Mingzhou Group only earns 50 US dollars per ton, how much can it earn from these 100 million tons? Five billion dollars! (The specific price has not been found. The highest price of iron ore is more than 130 US dollars per ton. The middle price is taken here.)
How much money can BHP make from its hard work mining iron ore?
Thinking of this, countless people became jealous.
In short, a difficult problem is placed in front of them. Now, what should they do?
Dongfang is determined to fight them to the death! If they continue to raise prices, Dongfangtie will definitely not come to them for purchase. Can they survive a year? Seventy percent of their iron ore is exported to the East.
Moreover, the one-year estimate is based on the fact that the Orientals completely give up imports. In fact, the Orientals have other import channels. After all, there are more than just kangaroo countries in the world that can export iron ore. This means that there is no The war of gunpowder may last for two or three years! Even four or five years!
“I need a computer to receive my email, which has satellite images on it.”
Soon, the image was displayed on the computer screen. Looking at the iron ore all over the mountains and plains, some people couldn't help but speak.
“Could this be a fake? Orientals deliberately deceived us?”
“You have to believe in our professionalism. We have photos from the past ten years and we can compare them.”
Ten years ago, there was an uninhabited swamp. Then, man-made mountains continued to appear, growing a little higher every year until they are now. The changes over the past ten years are enough to illustrate the authenticity of these iron ores.
“There is another project.” Wein continued: “We have noticed that Dongfang and Damao signed an agreement to import scrap steel, and the agreement amount is 10 million tons.”
The steel smelted from scrap steel is not as good as iron ore, because there are many kinds of scrap steel. When smelting, they are poured into the steel-making furnace. God knows what ingredients are in it. Therefore, Lao Maozi hardly uses scrap steel. He has countless iron ore and directly Just use iron ore to smelt it.
So, there is a large amount of scrap steel in Lao Maozi. Now, Dongfang has to import a large amount of scrap steel. Although these scrap steel cannot be smelted into advanced steel, it is still no problem to be used in low-end industries.
Orientals are already making plans!
“Now, we have to find a breakthrough, we have to break the situation!” Ender said.
They faced a crisis.
Qin Tao, who had personally experienced this crisis, has returned to Mingzhou. He came to the nearby exposed iron ore mountains and was very satisfied. This is his biggest layout!
This is also the advantage that time travelers have.
Coming from another time and space, he naturally knows the shortcomings of the domestic steel industry.
In 1978, the history of the East opened a new page. In December of my childhood, Baosteel laid the first pile, ushering in a new era. In 1985, the first phase of the project was completed, and the blast furnace was ignited in September. The blast furnace used at that time was Iron ore imported from football countries.
From that time on, the steel industry of the motherland officially entered the stage of competition with the international iron ore giants. This game has lasted for decades. Moreover, the motherland has always been at a disadvantage, and the international iron ore price has risen several times. Times, the scale of domestic steel companies continues to expand, but profits are not high. Most of the profits are taken by others, and we are a low-end supplier in the global industrial chain.
In particular, in some years, steel companies even suffered losses. They started losing money in 2012, and by 2015, the entire industry had lost tens of billions.
At that time, the country finally started to take action. The first step was to reduce production capacity. The more production was produced, the less it could be sold at a reasonable price. The country had nothing but mutual infighting. In two years, 140 million tons of production capacity was removed. The steel industry began to grow in 2017, but international iron ore giants began to increase prices again.
Profits were once again made by the iron ore giant!
If you want to avoid this situation, you need to control the pricing power of iron ore! This time, it was Qin Tao's first attempt. Since the other party had put the knife on Mingzhou Group's neck, of course he had to fight!
When it’s time to draw your sword, you must draw your sword!
Let’s not talk about using RMB to settle iron ore. At least this price is not something you can raise just because you want to!
"We can't afford it, and they can't afford it even more." Qin Tao said: "The worst outcome is that our bargaining fails and the country returns to the era of independent governance. Our Mingzhou Group has the iron ore mining rights of Football Country. We can increase the mining intensity there, and import iron ore from Lao Maozi, and we can maintain production. We are now seeking benefits for all our domestic steel companies."
Qin Tao is not afraid that the supply of iron ore in Kangaroo Country will be cut off. He has already made plans. He signed an agreement with Football Country a few years ago. The demand for iron ore in Kangaroo Country is getting smaller and smaller, but he has already made plans. If you have money, then keep buying, buying, buying, saving, and waiting for this moment to come.
Even if he fails, he is not afraid. He has a good relationship with Lao Maozi.
Historically, with the problem of Kangaroo Country, domestic resources imported from Kangaroo Country have become less and less. Coal, natural gas, etc. have all turned to Lao Maozi. What about iron ore?
Damao has abundant iron ore reserves, ranking third in the world, with total reserves of 25 billion tons. However, iron ore mining in Laomaozi is inconvenient. The iron ore in the Ural Mountains is okay, but mining in Siberia is difficult. Moreover, Damao has They use a lot of iron ore themselves, and their excess iron ore is mainly exchanged for high-end steel products from Europe.
Now, Mingzhou Group can completely replace Europe and let Damao exchange iron ore for Mingzhou Group’s high-end steel.
So, Qin Tao doesn’t care about Kangaroo Country at all. This battle is for the motherland!
"Mr. Qin, the relevant departments have targeted Laigang and Shougang. Each has a person responsible for the iron ore import and export business, suspected of leaking the content of this meeting in advance." At this moment, Xu Zhengyang said to Qin Tao .
During this period of time, Xu Zhengyang has been working with He Qian on the Nansha Islands. Until now, Qin Tao has a new tough battle to fight, and Xu Zhengyang has returned. At the critical moment, Xu Zhengyang can better protect him. Qin Tao's safety must prevent the worst from happening.
Qin Tao did not attend the founding meeting of the China Iron and Steel Association, but he has been paying attention to the trends here. Sure enough, as he expected, the content of the meeting was quickly leaked. In some large domestic steel companies, some People have been bought!
In fact, this meeting was originally intended to be announced. After all, in the future, China Iron and Steel Association will negotiate with the iron ore exporters of Kangaroo Country. However, it is one thing to announce it, and it is another thing for the other party to get the news in advance. Got it!
During a war, the most annoying thing is the appearance of traitors among the people. But now that the traitors have appeared, what else is there to say?
“Who did they leak the news to?” Qin Tao asked.
“Staff from BHP’s office in Huating.”
"Reporting to superiors, I suggest arresting these staff together on suspicion of stealing state secrets. Of course, whether they can be arrested in the end depends on the determination of superiors. There is only so much we can do." Qin Tao said.
The nature of arresting domestic iron ore import and export business personnel is completely different from arresting BHP office personnel. Qin Tao doesn't know what his superiors will do. After all, the superiors have their own considerations, but he will definitely raise his opinions.
"OK."
“Is there anything else?”
"It has been supervised that the persons in charge of Cao Gang and Huang Gang are secretly contacting other small and medium-sized steel companies. Judging from their appearance, they should be planning to sign an agreement with foreign mining giants before the China Iron and Steel Association announces the news to the outside world, bypassing China. Steel Association, privately importing iron ore." Xu Zhengyang continued.
This is like a big family, saying they are all family members, but secretly doing things to betray the family, just for their own selfish interests. When Xu Zhengyang told the news, his eyes were filled with murderous intent. As long as Qin Say hello to Thao and he promises to make those people regret it for the rest of their lives.
“Who are they talking to?” Qin Tao asked.
“Vale SA.”
“Okay, it seems they are not very stupid, and they actually know how to avoid our reverse scales.” Qin Tao said.
Now, all steel companies have united to import iron ore together, just to compete with the iron ore suppliers in Kangaroo Country. At this time, if domestic small and medium-sized steel companies go to privately sign contracts with BHP Company, it is conceivable that You know, why is the China Steel Association so angry? This kind of behavior is not just disruptive, but surrendering and surrendering to the enemy and treason!
ˆIt would be different if we cooperate with Vale. After all, this company belongs to a football country.
“Then what should we do?” Xu Zhengyang asked: “Do we need to stop it?”
"Of course not." Qin Tao said: "Since they want to talk, let them do it. Let's wait a few days until they sign the contract, and then we won't be too late to take action. Let's go there in the next few days. Over at Da Mao, try to get Da Mao’s iron ore to gain leverage on the negotiation table.”
Internationally, Kangaroo Country and Football Country control the global iron ore market. Their reserves are not the highest, but their iron ore is easy to mine. More importantly, the grade of iron ore is very high. For example, Kangaroo Country The grade of iron ore from China reaches 57%, and the grade from football country is as high as 67%.
The grade of domestic iron ore is only over 30%. Therefore, even if there is enough iron ore in the country, steel mills, considering various interests, still prefer to use imported iron ore because it is easier to smelt. The steel is of good quality.
Now, Qin Tao must take action in many aspects to make Kangaroo Country understand the current situation, suppliers and purchasers, who has the upper hand!
“Director Zhang, come with me to Lao Maozi’s place.” Qin Tao said to Zhang Jinxi.
Qin Tao doesn’t know how to make steel after all, but Zhang Jinxi is an expert in steelmaking. Now when he goes to Lao Maozi to talk about iron ore, of course he has to take Zhang Jinxi with him.
Zhang Jinxi nodded: "Okay, Mr. Qin, this matter is of great importance. Even if I lose my leg, I still have to help."
In the past, although Mingzhou Steel Plant smelted a lot of advanced steel, it was always unknown and played a supporting role in the group. With this incident, they can finally come to the forefront!
Zhang Jinxi is excited and proud to be on this stage. They have made various preparations and are ready to meet various challenges that may come, and they will continue to make various preparations for rainy days.
Zhang Jinxi and Qin Tao set foot on Damao's territory and headed for the Ural Mountains.
This has always been the most important industrial center of Lao Maozi. During the brutal World War II, the entire west side of Lao Maozi was occupied by Germany, and the battle line once reached Moscow. Lao Maozi relied on the weapons and equipment provided by the Ural Mountains to block resisted the German attack and finally held out until the counterattack arrived.
After the war, many companies moved back to their original locations, but the industry in the Ural Mountains is still developing. The famous T-72 tank was produced by the Nizhny Tagil Tank Factory that remained. The iron-making industry here , has also been developing.
After the collapse of the Red Empire, Damao Metal Investment Company was established here. This company has now developed into the most important company in Damao and is also a world-renowned production and supply enterprise of iron ore and hot-briquetted iron. They also produce some of high quality steel.
So, when Qin Tao came to Damao, the first thing he visited was Damao Metal Investment Company.
In recent years, he has been busy with domestic economic development. Qin Tao has rarely come to Damao. This is the first time.
Efendiev, the head of Damao Metal Investment Company, smiled brightly: "Mr. Qin, you are welcome to visit our company. In the past few years, you have helped many domestic companies. Now, if you have any needs, just ask, We will do our best to help you.”
"I came here to seek cooperation. I hope we can achieve a win-win situation through cooperation." Qin Tao said, "I heard that you are still deficient in the production of certain steel, so you need to import some steel from Europe. , the prices of these steel materials are not low, right?”
“Yes, we do need some high-end steel, but we don’t need to spend money. We can just replace it with iron ore.”
“So, the same amount of iron ore is exchanged for twice the amount of high-end steel. Do you want to do such a transaction?”
Efendiyev's eyes suddenly lit up: "Twice the high-end steel? Do you have these steels?"
"Of course, we can produce whatever Europe can produce. This time, we have brought some steel. Now, how about asking your technicians to check the steel samples we brought?"
"Of course." Efendiev said: "Your Mingzhou Group has been able to produce advanced aircraft carriers, and the performance of the steel is naturally extraordinary. If your steel meets our requirements, then we can cooperate."
Zhang Jinxi followed the other party’s inspector, while Efendiev and Qin Tao continued chatting.
"We have heard about what happened to you recently. Kangaroo Country is a country composed of descendants of criminals. How can they be sincere? If we want to cooperate, we are more suitable. However, our own iron ore The output is not high. We still need a large amount of iron ore ourselves. We can only provide you with at most 20% of the iron ore we mine, which is about 10 million tons per year. This amount is definitely not enough. What you use.”
Qin Tao nodded: "Yes, there are relatively few, and we can only expand various channels. Can you find a way to increase production? If you need funds, we are willing to provide them, and you don't have to pay them back. We can directly use iron ore Just come and pay the bill."
Looking at it now, 10 million tons is a lot, but this is already the limit of Damao. After all, the mining quantity of Damao has never been increased. It is now more than 10 million tons. By 2020, it will also be 10 million tons. More than 10 million tons, and by that time, the domestic demand for iron ore had risen to 1.1 billion tons, which was just a drizzle.
It can be seen from this that Lao Maozi’s domestic industrial development has not changed in decades. Others are running and they are standing still.
“Mr. Qin, it’s cold here and we can’t mine for several months.” Efendiev said, “If you want to invest, how about we jointly develop the iron ore in the steppe country?”
The Prairie Country has only two neighboring countries, Damao and Dongfang. Therefore, there is no third option for the minerals mined in the Prairie Country except selling them to Damao or Dongfang.
Now, if you want more iron ore, you have to go to the grassland country.
However, Qin Tao has concerns about this proposal. The grassland country is rich in resources, but the people there are not very good. If you want to mine there, you will take a lot of risks. If Dongfang was mining in the past, there would definitely be guys riding horses or motorcycles with AKs in their hands asking for instant noodles. If they didn't give them a box of instant noodles, they would definitely not be sent away.
(End of this chapter)