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

City of London. Branch of Sheffield Steel Company!

In the conference room, more than a dozen company executives were having a meeting.

When the exchange sent a notice saying that all the margins on the long side were in place, they were required to immediately prepare for spot delivery in accordance with the rules.

After receiving the news, these executives of Sheffield United Steel Company panicked and immediately gathered together to discuss countermeasures.

"Sandy, it seems that this time we have encountered a bullish squeeze. The other party is well prepared and we have no way out!" Wood, the company's deputy general manager, sighed and said.

General Manager Sandy said with a gloomy face: "Spot delivery will be delivered. We can still get more than 1200 million tons of steel together. If it is not possible, we can buy it at a high price in the market!"

"But the most important thing now is to deal with the troublemakers in the company first and resume production as soon as possible. Otherwise, even if we solve this squeeze, there is no guarantee that we can avoid the next one!"

Another deputy general manager, Ward, frowned and said: "But those workers are too demanding. A 20% salary increase will greatly increase the company's burden. If we agree to their conditions, the board of directors will It’s not easy to explain.”

"And you also know that the price of steel has risen this year because of the war. Once the war is over, the price will definitely come down, but it will be difficult to come down when wages go up."

Sandy was silent for a moment, and then said: "The strike during this period has allowed us to produce at least more than 100 million tons of steel. If we do not resume production as soon as possible, the consequences will be disastrous."

"I think this matter should be discussed with the board of directors, otherwise I'm worried that those shareholders will have objections!" Wood said.

"I also think it would be better to discuss it with the board of directors!" Ward echoed.

Sandy sighed and said: "Those people on the board of directors can only take money and argue, and none of them can do anything. If this matter is discussed in a meeting, there will be no result in a week."

"Sandy, we all understand what you mean, but after the board of directors' discussion, no matter what happens, it will be a joint decision made by everyone, and no one will be held responsible if something goes wrong in the future."

Wood didn't say anything else, but Sandy understood that he was protecting himself and the company's top management.

After a while, Sandy said: "Let's put aside the matter of resuming production for now. Now let's think about how to solve the bullish squeeze!"

Ward immediately said: "I verified with the factory in the afternoon that the company still has at least 700 million tons of steel, and the current gap is almost less than 600 million tons. My suggestion is to purchase existing steel from the market immediately! "

"Okay, Wood, you will be in charge of the company's sales department. I will leave this matter to you. No matter what, we must purchase 600 million tons of steel within three days!" Sandy said in a deep voice.

"Yes!"

"Ward, our company still has a batch of contracts that are about to expire in early June. You should try to figure out who owns these short orders, contact him as soon as possible, and try to redeem these contracts as much as possible!" Sandy said in a solemn tone. said.

"Okay, I'll contact Mr. Slidan from the exchange right now!" Ward said.

"Go!"

Then Sandy said to his secretary: "Alice, notify those guys on the board of directors immediately and come to the company to attend the board meeting tomorrow morning. No one can take leave!"

"Ok!"

After giving the order, Sandy announced his decision to adjourn the meeting.

After everyone left, Sandy leaned on the sofa alone with a sad look on his face.

As the person in charge of the company and an elite with rich experience in business warfare, he already felt a strong crisis at this time.

In the past two months, their company has sold a total of 130 million empty orders, totaling 3250 tons of steel, which is equivalent to their company's production in the past two years!

It’s not like they didn’t know it was dangerous, but they had always felt that everything was in their hands. After all, their company was the largest steel supplier in the London Metal Market, and the exchange also wore the same pants as them.

In the past few years, they have been manipulating the price of steel on the exchange, and it is impossible to lose money.

The most important thing is that Sandy's brother serves as a senior commander in the imperial army and is the commander of a fleet.Before this battle, his brother had analyzed it for him. The empire would definitely win this war, and it wouldn't take long.

Therefore, Sandy knew very well that the current price of steel was only temporarily high and would fall back once the war was over.

That's why they want to take advantage of the high price to sell some short orders and try to lock in profits. Even if there are not so many physical deliveries by then, they can still make a lot of money by redeeming the short orders at a high price.

But I never thought that we would be squeezed by bulls in late May, which was not easy to handle.

The only thing he hopes now is that the remaining short orders are not in the hands of the people who forced the position this time, otherwise, it will be difficult to handle.

It's just that Sandy is not Chinese and has never heard of the saying "good things don't work but bad things work"!
In addition, he does not understand his opponent. If he had known Li Yi before and knew his investment style, he would not take any chances.
In the next two days, Sheffield Steel Company began to frantically acquire existing steel in the market.

But they were horrified to find that there was a special shortage of steel on the market.

Even the big retailers and building materials dealers don’t have much steel on hand at this time.

After two days of running, they only purchased 120 million tons, which was still more than 1280 million tons short of the 500 million tons required for delivery.

More importantly, the price of current steel has risen much higher than that of futures. The price per ton is already close to 330 pounds, which is more than ten pounds per ton more expensive than futures.

This discovery shocked the Sheffield Company. They had previously discovered that the spot price of the steel market fluctuated greatly, but at that time they thought it was a natural rise due to the influence of the futures market, so they did not pay too much attention.

After all, their company's main business has been transferred to the futures market, and coupled with the large spot inventory on the market, it cannot affect the futures market at all.

But now it is discovered that some people are hoarding a large amount of steel spot in the market.

If you have so much money, you don't invest in the stock market or the futures market, but instead invest in spot steel. This person is either mentally ill or has other agendas.

It's definitely impossible if he's sick. The only thing that makes sense is that the other party has other plans, and the plan is probably to force the steel company to lose money.

Once the other party succeeds in forcing a position, the consequences for their company will be disastrous.

At that time, the exchange will recycle the contracts held by the long sellers at the market price, and this part of the money will be borne by the steel company, and the contract holder will not suffer any losses.

In addition, the exchange will require them as short sellers to pay high fines and liquidated damages, which are generally 15% to 30% of the total value of the goods delivered.

Based on their company's situation, if all of the more than 3000 million tons of short orders required spot delivery, it would be impossible to assemble so many goods in a short period of time, and default would be almost inevitable.

And based on market price, the total price of so many contracts exceeds 120 billion pounds.

Using this as the base for fines, the maximum fine could be 30 billion pounds.

It is completely conceivable that after this combination of punches, their company will inevitably go bankrupt.

Realizing that they were in trouble, Sandy and others were completely panicked. No longer caring about their face, they immediately sent a distress call to several major shareholders behind the company.

Only then did several major financial groups, including the Sassoon family, realize that the Sheffield United Steel Company had caused such a huge disaster for them by keeping silent.

Although everyone is so angry that they want to chop Sandy, Wood and others alive, that will happen in the future. For now, they can only find ways to help them resolve the crisis.

Subsequently, the Sassoon family used their connections to purchase existing steel materials from all over the world, even going as far as transporting existing steel from the European continent.

At the same time, they also sent senior members of the family to negotiate with the party holding the contract.

As one of the heirs being trained by the family, Dolson happened to be in London at this time, so naturally such an important task fell on his head.
(End of this chapter)