Rebirth 1980: Marrying my sister’s best friend at the beginning

Li Family Manor. Study!

Li Futiao and Li Yi sat opposite each other across a small round table. There was a white porcelain teapot and two exquisite cups on the table.

After rinsing the teacup briefly, Li Futiao poured tea for Li Yi and said, "All the personnel and funds have been put in place. Now can you talk about your plan?"

Li Yi nodded, and then said: "I want to do more steel, aluminum, copper and other heavy metals!"

As soon as these words came out, Li Futiao was completely stunned.

After a while, he came back to his senses and said: "Are you sure you want to go long on these heavy metals? You must know that the world's steel is now in serious overcapacity. Can you really make money by going long on these heavy metals?"

"Yes, and you can make a lot of money!" Li Yi said with certainty.

"Brother Li Yi, do you think international steel prices will increase significantly in the future?" Li Futiao asked again.

"The price will increase, and it will at least double!" Li Yi said.

"Will the increase be that big?"

"According to my judgment, it should be about the same!" Li Yi said with certainty.

You must know that starting next month, the famous British-Arama Island War is about to break out. As soon as the war begins, the prices of precious metals such as steel, aluminum, copper, etc., which are strategic materials, and even bulk agricultural products such as grain and cotton, have skyrocketed in a short period of time. .

Among these materials that have increased in price, the price of steel has increased the most. It once soared from 160 pounds per ton before the war to 330 pounds per ton, an increase of more than double.

"If the price of steel can really double in a short period of time, then this matter can indeed be carefully planned!" Li Futiao said.

"Lao Li, you contact Yunbao and the others immediately and ask them to divide all the funds in their hands into two, and use one half to purchase the steel, copper, and aluminum futures contracts on the market with a leverage of 5 to 10 times, of which no less than half Funds were used to acquire steel contracts sold by Sheffield Steel United!”

Then Li Yi continued: "The remaining 18 billion pounds will be used to purchase steel on the British Isles market. They can entrust a professional company to do this!"

After hearing Li Yi's arrangement, Li Futiao suddenly couldn't understand it.

You can go directly to the futures market for short and long positions. Why do you need to buy steel on the market? What kind of operation is this?

You must know that purchasing steel on the market not only requires a large amount of capital, but also requires space for storage and safekeeping, which is also a huge expense.

The most important thing is that the income from this thing is completely incomparable with futures trading!
"Brother Li Yi, why do you want to buy steel on the market? Wouldn't it be better to invest all your money in the futures market?"

Li Yi thought for a moment and said something that surprised Li Futiao: "Old Li, the major shareholder behind Sheffield Steel United is the Sassoon family!"

"You want to attack the Sassoon family by attacking Sheffield Company?" Li Futiao said with some surprise.

"Yes, as far as I know, Sheffield Steel Company is one of the most important entities of the Sassoon family. Since this steel company believes that the price of steel has reached its peak in recent years, in order to lock in the company's profits, it has been We are shorting the steel industry and selling a large number of steel futures contracts every year. This is a rare opportunity for us!"

Then Li Yi continued: "As long as we buy a large amount of their company's steel futures, and then purchase a large amount of steel on the market, it is very likely that the company will not have enough steel to deliver the contract. At that time, we can completely Smash this steel company into bankruptcy!”

Li Futiao thought for a moment and said, "I understand your plan, but"

"but what?"

"It's too risky!"

Then Li Futiao said in a deep voice: "You want Sheffield to be unable to complete the contract delivery, forcing it to breach the contract, or even make it go bankrupt."

"But have you ever thought about it? London is only separated from Europe by the English Channel. If necessary, they can mobilize steel from all over Europe for delivery. What will we do then?"

Li Yi said calmly: "If they are really able to deliver, then we will accept it. As long as the price of steel doubles, we will definitely not lose money!"

"But if they fail to deliver, it will be a disaster for Sheffield Steel Company. It will not only lose business reputation, but also an immeasurable huge amount of money. Bankruptcy is almost inevitable!" After hearing what Li Yi said, Li Futiao immediately became silent, and then seriously deduced Li Yi's plan.

It is very common in the industry for large steel companies to short steel in order to lock in profits in advance.

In fact, this is not only the case for steel, but also for all eight major metals in the London metal futures market.

The principle of this is actually very simple. As long as the company believes that the current price of the product is already at a high level, and the price in the next production cycle is unlikely to be higher than the current price, then the product that has not yet been produced will be priced at the current price. The price is sold in advance and then delivered at maturity.

In this way, the profit of the product is locked in now. Even if the price of the product drops in the future, it will not affect the company's profit.

Obviously, Li Yi believes that the price of steel will increase significantly in the future. If you buy these contracts now, you will make a lot of money by then.

Li Futiao can understand this kind of operation and quite agrees with it.

But according to what he meant, the purpose of going long steel this time was not only to make money, but also to teach the Sassoon family a lesson.

This is a bit difficult to operate. Unless Sheffield is really unable to complete the contract delivery, the follow-up will not end well.

More importantly, that's the home ground of the ghost guys, and Sheffield United Steel is a well-known local large company. The government there will never let them go bankrupt.

Therefore, no matter how you look at it, Li Yi's plan is difficult to succeed!

"Brother Li Yi, how sure are you?"

Li Yi said confidently: "At least [-]%!"

Li Futiao's expression was slightly stunned. He knew that Li Yi was very humble and reserved when he spoke.

He said [-]% sure, that means at least [-]%, or even [-]% sure!
Li Futiao really guessed this right, and Li Yi was really confident about this plan.

He is very familiar with the situation of Sheffield Steel Company. Li Yi almost acquired this company in his previous life, but that was only after the 90s.

Prior to this, Li Yi had specifically studied the situation of this company.

According to what he learned, the company's production capacity ranks among the top three in Europe. However, since steel prices have been in a downturn in recent years, the benefits are not very good.

More importantly, the price of steel will rebound significantly this year, and most steel companies with poor profits will take this opportunity to get out of the crisis.

But it does not include Sheffield Steel Company, because they have been cutting the wages of steel workers. At the critical time when steel prices were recovering, this company had an unprecedented scale of workers' strike, which caused this company to be in a period of up to one month. It was shut down for half a month.

This directly led to the resumption of delivery of their expired contracts, resulting in the loss of a large amount of funds, and also laid the foundation for the company's subsequent operating difficulties.

In the previous life, this company finally survived this crisis, but it became half-dead.

What Li Yi is doing now is to intensify the crisis and kill the company completely, so as to beat the ghosts behind the company.

"Since you are so sure of your plan, then go ahead and do it. I will tell Rainbow Dash and the others about your plan!" Li Futiao said.

"Okay, Lao Li, tell Rainbow Dash to try to be as secretive as possible when they do it, and don't alert Sheffield Company yet!"

After all, it will take some time for the Falklands War to break out. During this period, the target must not be exposed, otherwise it will attract the attention of other companies, which will not be easy to fish in troubled waters.

"it is good"

(End of this chapter)