Material Empire

Vale monopolizes more than 40% of the world's iron ore trade, and to outsiders, it is an invincible giant. But Callum knew that such strength was actually weak. Mining is a capital-intensive industry. Every step from the purchase of a mine to the construction of roads and equipment requires huge capital expenditures.

Vale has hundreds of billions of dollars in capital, but also hundreds of billions of liabilities. Every day, the company has to pay tens of millions of dollars in interest, and pay tens of millions of dollars in depreciation for the equipment it owns, and then calculate the expenses such as rents and employee salaries of branches, mines, etc. around the world The company must guarantee an annual operating income of more than 20 billion in order to ensure a breakeven.

What Qin Hai saw was precisely this soft underbelly of Vale. He knows that iron ore trading with Vale is crucial for China's steel industry, and for Vale itself, it is also a matter of life and death. If the talks between the two sides really collapse, China's losses will undoubtedly be greater, but Vale will not be able to stand alone and suffer the same calamity.

Vale's confidence comes from believing that China's steel industry is pursuing rationality and will not be willing to fight a dead net with Vale. But it never occurred to China that China was really playing a heartbeat, and it was going to compare with Vale, who was the one who blinked first.

Does Callum bet? Obviously, he didn't have the guts. China is now setting out to warn Vale that if they do not submit, the Chinese would rather spend more money and look for new sources of ore supply. If such a pattern is really formed, China will lose billions or even tens of billions of dollars, which can be tolerated for a country. Vale will be completely bankrupt in this fight, and even if Callum wants to play, the board behind him will show him a red card without hesitation.

However, if the Chinese frightened and flinched, it would not be in the interests of Vale, so Callum must find a way to find out the Chinese hole cards. See if the Chinese really want to go to war, or just bluff.

A top-secret e-mail flew to the distant east through the submarine optical cable and appeared on the computer display screen of Sun Zhenjiang, general manager of Puzhen Xinzhen Resources Trading Company.

A steel war ten years ago, Sun Zhenjiang lost billions of assets accumulated in business for more than ten years. Fortunately, the elders in the family had some old relationships at the upper level, which helped smooth out the money he had loaned from various banks, which only kept his personal freedom. His original trading company was forced to close, and he ran abroad for a few years to see if the limelight had passed. Then I returned to China and registered this Xinzheng trading company in Pujiang, specializing in the import of foreign minerals. The biggest one of its business is iron ore.

In the early years of business, Sun Zhenjiang had a group of little brothers who grew up together in the compound and helped each other. During the steel war, Sun Zhenjiang dragged these little brothers into the water, and afterwards he tried to get the little brothers to unravel it for him, resulting in anger. Almost not chased by these little brothers. After returning home this time, Sun Zhenjiang didn't even dare to return to Beijing to do business, let alone join hands with these little brothers.

As an lonely man, he could only reach the Vale. To the surface, he is the domestic agent of Vale and is also a private business spy. In those years, he had contacts with many domestic steel companies. In the subsequent steel war, Sun Zhenjiang did not have any conflicts with the iron and steel enterprises, and he can still be familiar with each other until now. Coupled with his ability to obtain iron ore from Vale, once or two, he also became a guest at various steel companies.

Received an email from Chofts. Sun Zhenjiang was both excited and shy. What excites him is that Vale is asking for him on major strategic issues, which means that his position in Vale has improved, and he will have more capital for profit in the future. Where it is. It is because he knows what he is doing. This is not to provide a little background information, but to probe the core industry information in China.

"I've lost all of your face! If you make trouble again, don't expect your family to save you again!"

Ten years ago, the elders' angry reprimand sounded in the ears of Sun Zhenjiang. He held his head subconsciously and covered his ears. Try to shield this voice.

Should we take the risk and help Geoffs with this? Sun Zhenjiang was caught in a contradiction. One step forward may be unlimited benefits and returns with the risk of prison. If you take a step back, he will lose the trust of Vale, and then stop at the mall, only to live in the poor. day.

NND, the wealthy seeks for insurance. At that time, the father did not hold his head on the battlefield, only in exchange for his prominent status and the grandeur of his children and grandchildren, how can he not take a risk?

Thinking of this, Sun Zhenjiang picked up the phone on the table, dialed a number, and greeted me intimately on the phone: "Hey, Xiang, I'm going to Hongyuan for a business trip tomorrow. Do you have time to sit together?"

In the general manager's office of Hongyuan Iron and Steel Company, Pang Yongzheng and Xiang Pengda sat opposite each other, and the cigarette in their hands formed a long cigarette butt, but neither of them was aware of it.

"Sun Zhenjiang said that he can help us get iron ore in Vale." Xiang Pengda reported to Pang Yongzhang.

"What channels does he have?" Pang Yongzhang asked, "Isn't the country already banned companies from contacting Vale in private? ... This Qin Hai covered the sky with one hand and pitted us all. I'll see how he got down the stairs at last. "

"Qin Hai is now busy looking for mines all over the world. I heard that I have found Russia and want to develop the Dubiago iron mine." Xiang Pengda went on to say Pang Yongzhang.

Pang Yongzhang sneered: "We are not unfamiliar with the situation of the Dubiago iron ore. In the alpine zone, it is difficult to mine, and the iron ore is of low grade and high phosphorus content. Anyone who wants such ore needs it anyway. I don't want to. "

"So, we can only find a way to connect with Vale. In the past two months, we have used domestic ore. Although subsidized by the Economic and Trade Commission, the cost is higher than that of Vale, and the grade of domestic ore is high. Low, our equipment capabilities cannot be brought into play, and both ends suffer. "Xiang Pengda said.

Pang Yongmin lowered his voice and asked, "Lao Xiang, do you think Sun Zhenjiang is reliable?"

"It's hard to say." Xiang Pengda said, "However, his parents are a bit prestigious, and he still has a lot of weight to speak on."

"Fart!" Pang Yongji said scornfully, "I really have a lot of weight. At that time in 1993, this Sun Zhenjiang could grow so hard?"

The steel circle is also so big. In the steel war in 1993, everyone in the circle knew nothing. Xiang Pengda said with a smile: "That's no way. That was led by the Planning Commission and the release of steel prices was related to the overall reform of the material supply system. It was a top priority for the whole country at that time. Sun Zhenjiang played on this kind of thing. It ’s so overdone, it ’s weird if you do n’t follow suit. Without his parents, he would be able to sit through the jail. ”

"This time, it's almost the same as it was then." Pang Yongkun said, and then he remembered the incident again, and could not help but fight a shiver, saying, "I remember, then Wang Hongsheng, the planning committee, also used Qin Hai as a gun. The Daqin Group established the prestige in the iron and steel industry at that time, and also hanged the number with the head. This time it was Qin Hai again, you said, isn't this a bit doomed?

"General Manager Pang, do you believe this too?" Xiang Pengda laughed. "I feel that Sun Zhenjiang played this time, not as big as last time. Isn't he just pouring in a little iron ore to come in, can we solve our urgent needs?" Even if it is a little contradiction with the notice of the Economic and Trade Commission, it is estimated that depending on the relationship above, there will not be any major problems? The most important thing is that we are dealing with him, and we do n’t know other things, even if he has an accident What does it matter to us? "

"That's the truth, too." Pang Yongji nodded. "Now the Economic and Trade Commission has bet Bao Qin on Qin Hai. They don't want to think that Qin Hai is a private enterprise. He doesn't. We are different. If we drag on like this, we will have to take the provincial red card this year. "

"Then you mean, can we contact Sun Zhenjiang?" Asked Pengda.

"This matter, you just have to grasp it." Pang Yongzhang said vaguely ~ www.readwn.com ~ Well, you old fox, scolded Pengda in his heart. He knew that Pang Yongzhang was afraid of taking responsibility, so he let him go to the top tank. This matter was accomplished by Pang Yongzheng's achievements. If he failed to do so, he would open up to Pengda without permission. He pretended to be in a dilemma and said, "General Manager Pang, Sun Zhenjiang said on the phone. He wants to meet with you. Of course, you can not talk about minerals, but mainly to contact feelings. I alone, in him Not enough weight in front of me. "

"This boy still has such a big score?" Pang Yongzhang said indignantly. "On the basis of his second-generation child who is too angry, how dare to say such a thing?"

Xiang Pengda shook his head and said, "General Manager Pang, I don't care about his background, mainly because he still has the relationship of Vale. Once the country is released, we have to reconnect with Vale, and we have to use him to learn from it. Dredge. Besides, he can now avoid the control of the Economic and Trade Commission and obtain the ore in Vale, which is also very helpful to us. "

"Well, since that's the case, then it doesn't matter if I see him. But let's talk about it. As for the ore, I don't talk, you just say yes." Pang Yongzhang told.

Xiang Pengda smiled and said, "No problem, I'll book a restaurant." (To be continued.)