Through the wealth life

Chapter 1175 Price Monopoly
Today's reception is just a pretext. This gathering of several parties is mainly for their own interests. It has not been long since the global stock market crash happened, which made the already weak global steel market worse. Affected by this, the global iron ore Prices took a hit again.

This time, not only representatives from Rio Tinto, BHP Billiton and Xinma Iron Ore Development Company, but also the vice president of Brazil's Vale also came here.

This stock market crash has directly weakened the purchasing power of various places. Take automobiles as an example. Whether it is the Bentley Group, Toyota, Volkswagen, General Motors, etc., the sales volume in November has declined to varying degrees, especially the luxury car brands. , development is more difficult, Li Guangyu estimates that a large number of luxury car brands will be transferred in the next few years.

When these luxury car brands want to make money, they probably have to wait for the mainland's economy to develop. In the future, the mainland auto market will save countless luxury car brands.

Due to the impact of the stock market, investment has slowed down, business expansion has also pressed the pause button, the unemployment rate has risen, and living standards have declined, which has also led to weakened demand for steel.

And another important reason is that the global shipping industry is in a cold winter. Countless shipping groups have gone bankrupt, and many ships have been scrapped directly, which is also a big blow to the steel industry.

There is only one purpose for the gathering of several parties this time, and that is to maintain the stability of iron ore prices and prevent the resources in their hands from being sold at a low price.

In a large conference room, representatives of several parties sat down separately. As the inviter this time, Franger first said: "Our companies are currently the largest mining companies in the world, and they are also iron ore mining companies. The main control of supply, the current global development is very unfavorable to our iron ore industry, iron ore prices are facing unprecedented challenges.

This time we asked the Xinma Iron Ore Development Company and the shareholders of Xingyuan Group to come, because we hope that the two parties can join our price alliance to jointly stabilize the price of iron ore and safeguard our common interests. "

In the past, they forced South Korean and Japanese companies to sign an iron ore supply price agreement because the three of them monopolized most of the world's iron ore exports.

And now the iron ore reserves in the hands of Xingyuan Group and its Xinma Iron Ore Development Company are astonishing. If they do not join this price alliance, they will have no way to achieve price setting and monopoly.

Don't think that the Japanese consortium and the Korean consortium were forced to sign such a treaty before, and they will oppose it now. It is a big mistake to think that way. No one will be against money. They hated or even hated it before, but they did not have the resources. That's all, now that they have such resources in their hands, they certainly hope to monopolize the price so that they can obtain greater benefits.

And Li Guangyu obviously does not want iron ore to be sold at a low price. Although the Xinma Iron Ore Development Company is a multi-party joint venture, he holds 30% of the shares and is still the largest shareholder of the company. Also has his stake.

In addition, his Xingyuan Group also owns several medium and large iron mines, and the drop in iron ore prices will not do him any good.

Li Guangyu said aloud: "As for the price alliance, I personally support it. It's just that the price is determined in detail. We still need to discuss it carefully. We don't want to have no say in the price."

Hearing that Li Guangyu agreed to join the price alliance, both Franger, Patterson and the vice president of Vale of Brazil, Miles Johnson, were all very happy.

As for Li Guangyu's right to speak about price setting, there is naturally no problem. If Xingyuan Group does not agree with its price, they will not be able to implement it. To achieve price monopoly, several companies must cooperate with each other.

The only thing that makes them sad is that the markets of Japan, South Korea and Baodao will be far away from them, and these regions will definitely give priority to buying iron ore from Xinma Iron Ore Development Company.

In this regard, they can only sigh helplessly. They have used almost all the methods available before, but it is a pity that they still have not been able to stop the construction of supporting facilities for the Xinma Iron Ore Development Company. This is doomed to them to lose a large number of orders.

But what makes them more happy is that the huge market in the mainland has been gradually gaining strength. Since 1980, the import of iron ore has been increasing every year. Although the current total import volume is still relatively low, several major mining groups It is believed that with the continuous advancement of reform and opening up in the mainland, the demand for iron ore will increase in the future. As long as they firmly grasp this large customer, their business will not suffer too much.

As for the Xinma Iron Ore Development Company, the iron ore developed here will mainly be supplied to the South Korean and Japanese markets, as well as the Baodao market. Even if there is a surplus, the West Australian Iron and Steel Group will also need it, and the remaining part of the output will not occupy much of the market. up.

Moreover, he believes that these shareholders behind the Xinma Iron Ore Development Company will never only care about the immediate interests. They also understand the truth that long-term development of iron ore is not good for the development of all parties. They believe that the Xinma Iron Ore Development Company will follow the plan mined.

Parsons said aloud: "Mr. Li, the price naturally needs to be negotiated by several of us, and it can be determined after we all agree on the price. Naturally, you also have the right to set the transaction price.

This price is set to safeguard the common interests of several of us, and I hope that you will not act emotionally. We are all company executives and shareholders of the company, and we need to be responsible for the company and our own interests. "

Rio Tinto is afraid that the Xinma Iron Ore Development Company and even the Xingyuan Group will not abandon them and go it alone, which will cause great trouble.

At present, there are several major iron ore importing countries, one is Japan, but Germany, the third is the United States, and the fourth is South Korea. Now their main iron ore groups set prices with several steel companies every year, and now they are also communicating in this regard , the price will be announced in January, and the index price will be determined after confirmation.

Several parties discussed the specific details later, and after nearly two hours, they finally reached a consensus to realize an alliance on the price and jointly safeguard the price of iron ore and their own interests.

After the meeting, Li Guangyu had some discussions with Sumitomo Qiying, Iwasaki Toshihide, Zheng Zhouyong and others about the Marandu Iron Ore Development Company.

The group will impose internal prices on the steel companies owned by several shareholders to reduce costs for all parties.

The purpose of this company was to reduce the cost of iron ore for all parties. Now that the price alliance is implemented, if the internal coordination is not good, there will be some problems in the original plan.

You must know that the largest customer of Xinma Iron Ore Development Company is Nippon Steel Corporation. If the internal price is not realized, the Japanese consortium will not get much benefit at all. This will seriously violate the agreement signed when the company was established.

After negotiations between several parties, the steel companies of several shareholders will purchase iron ore from Xinma Iron Ore Development Company, and the price will be 10% lower than the stipulated price, so as to reduce the cost of purchasing raw materials for several parties.

As for how to operate in this aspect, Li Guangyu believes that the financial affairs will be done well. They only need to finalize the general plan. Even if Rio Tinto, BHP Billiton and Brazil's Vale know there are problems, they can't find their troubles.

……

(End of this chapter)