In 2003, the world long-term iron ore price increased by 8%, averaging more than 0.35 dollars per ton.

At the end of the year, Huaxia Baosteel joined forces with Pan Gang and more than a dozen large steel companies to form a purchasing alliance, joining international negotiations for the first time and negotiating prices with major global iron ore suppliers such as Tanshui Hehehe, Bitho Bitto, and Rio Tinto.

As a result, the goals of price reduction or maintenance of the original negotiated price expected by all domestic parties were not achieved, and the long-term negotiated price rose again by 18.6%.

After the representative of Baogang came back, he told everyone: The major international iron ore suppliers have unanimously determined that the iron ore price in 2004 will be based on the price agreed between Rio Tinto and Nippon Steel. We have joined the WTO and must obey the international iron ore price.

Long-term agreement pricing mechanism.

Theoretically, the import price of China's iron ore in 2004 should be based on this benchmark price.

Then, after Baogang announced the news, something went wrong.

Lennar stated at the customer appreciation meeting held during this year's Lantern Festival: We will not refer to the so-called benchmark prices set by those three companies. We promise you that in 2004, we will continue to stably supply iron ore to our partners at the agreed price of the previous year.

stone, it will not exceed 0.35 knives per ton.

In fact, from 1991, when the first international iron ore long-term agreement negotiations began, until China joined the negotiations in 2003, international iron ore prices rose and fell in an orderly manner, with an overall increase of negative 16%, which means that the price dropped by 16% in 10 years.

%, has been hovering around 0.35 dollars per ton.

With an increase of 18% this year, the price per ton will exceed $0.4, which is actually acceptable.

Compared with the price given by Bileena, the price per ton of ore purchased from three major international suppliers is only $3 higher.

But the greater the amount used, the greater the difference will be, which is distressing for some people just thinking about it.

Soon after, someone in the industry spread the news: Laina Iron Mine has just been built and its supply capacity is limited. Don’t run out of food by then.

As a result, in the first month of the year, Lennar Chairman Nick Courtis invited his partners to Western Australia and led everyone to visit the major mines belonging to Lennar.

Hearing with the ears is false, seeing with the eyes is true.

The bosses of the steel mills flew from Pease to the port of Warrer Downs on a special plane.

The Port of Warrer Downs is the self-operated port of Lennar AG. It has six dedicated berths for iron ore, with an annual throughput capacity of 300 million tons. Currently, only two are in use.

Starting from the port, two heavy rail lines extend inland, passing through Wallwaking, Braeside, Narrageen and Royhill, to the Big Rock Mine.

According to Nick, the several mines he saw along the way actually belonged to Reiner!

In the Juyan Mine, 300-ton giant mine cars shuttle back and forth, transporting the ore mined from the open pit to the station yard, and then filling the long train cars with conveyor belts.

At noon, mine manager Tara received guests from China in the cafeteria. After meeting, everyone discovered that more than half of the employees here are from China.

After reading this, the bosses had mixed feelings. They all knew that the major shareholder of Reiner Holdings was Chen Lidong, and that boy was actually so powerful abroad.

The bosses of steel mills are all smart people. They don't put their eggs in one basket and choose multiple ore suppliers to avoid the crisis of food shortage.

The purchasing director of Shagang was in Zayahuazi, and they also joined Baosteel's group and signed an annual supply agreement of 5 million tons.

If you buy these 5 million tons from Lennar, you will save about 15 million knives, equivalent to 120 million yuan.

He knew some inside stories. In fact, Baogang had a cooperative relationship with Tanshui River Valley and Rio Tinto to develop mines. When the price of ore increased, Baogang did not lose money even after careful calculation. The losers were these companies without external mines.

...

Hu Bitan and Chen Jianing are old acquaintances. After a few pleasantries in Chen Jianing's office, he directly stated the purpose of his visit: "Ms. Jianing, I am here not only to represent Rio Tinto, but also to express the opinions of some domestic customers. We hope that Lennar

Companies raise iron ore prices."

Chen Jianing smiled and said: "Peter, I'm afraid you have found the wrong person. I am only responsible for arranging the ore trade, but I cannot influence the decisions of Lennar Company."

Hu Bitan smiled and said: "I know very well that it is Mr. Chen Lidong who can make the final decision on Lena, but I also know that he respects your opinion. If you can help him distinguish the pros and cons, it will be beneficial to all of us."

"Oh? Distinguish the pros and cons? Will Lennar suffer losses in other ways if it doesn't increase prices?"

Hu Bitan sat upright and said seriously: "Of course."

Chen Jianing combed her bangs and said with an awe-inspiring look: "Please tell me."

Hu Bitan said: "Rio Tinto where I work is an old company. We Chinese people often say that 'a skinny camel is bigger than a horse.' Although Rio Tinto has shrunk its business in recent years, it is still very large.

Lennar has only been started for a few years, so why should it compete with Rio Tinto, Bihe Bitto, and Water Valley?"

[By the way, the best app for reading and listening to books is Yeguo Reading, www. Install the latest version. 】

Chen Jianing thought for a while and said: "Haha, Lennar doesn't want to fight with anyone. It's just that it has taken on huge debts in recent years to build ports, railways and other infrastructure, and now it is just to collect funds.

Moreover, Mr. Hu has been in China for a long time and has probably done some research. Lennar’s customers are mainly domestic emerging private steel companies, and they are not competing with the three giants to grab the market.”

Hu Bitan smiled and said: "In fact, the increase in ore prices is also good for the steel companies themselves."

"Oh? Is there such a thing? You need to teach me."

Hu Bitan said: "You and I both know that China's domestic ores are poor and of poor grade, but the mining costs are not low. This has led to some domestic steel companies in the past being desperate and struggling to survive.

The inflow of foreign mines has allowed large enterprises like Nabao Steel to find a way out and continue to grow bigger and stronger.

However, in recent years, some small domestic steel companies have found a way to buy foreign minerals, thus getting out of trouble.

However, those companies have extensive management and are only interested in profit, using various means to seize the market, and even some fake and shoddy products have entered the market. This is not good news for the steel industry.

Therefore, in the long run, we should increase the price of iron ore, which will dilute the profits of steel production and reshuffle the steel companies.

Although it is a bit cruel for small steel companies, the strong waves wash away the sand and the fittest survive, and those who remain are the strongest ones.

If you think about it, if the entire Chinese steel industry were concentrated among the 20 or 30 companies including Baogang, Beigang, and Donghua, we would be able to form a closer alliance and it would be easier to form a community of interests.

Do you think this is true for having more say?"

Chen Jianing nodded while listening. Seeing that Hu Bitan had stopped talking, she laughed and said, "Oh, listening to your words is worth ten years of reading.

But I don’t care what I say, but I will convey your opinions to Chairman Chen in their entirety.”

"Okay, oh, there is one more thing related to you."

"Oh? Is it related to me?"

Hu Bitan nodded and said: "To be precise, it is related to your father."

"What's going on?"

"Your father, Mr. Chen Shifeng, opened an investment company in Yanjing last year. The legal person is your sister, Ms. Chen Xiaobei. At the end of last year, the company lost a lot of money due to wrong decisions.

He was embarrassed to come to you, so he met with me and I promised him that I would inject capital into the company to alleviate the debt crisis."

After hearing Hu Bitan's words, Chen Jianing's expression changed. Chen Xiaobei is Chen Shifeng's illegitimate daughter, the child of his father and the mistress.

Chen Shifeng told his mother that he had cut off contact with her, but it turned out to be a lie.

However, the inside story here cannot be told to others. Chen Jianing calmed down and said: "Oh, that's it. Thank you for helping him. Well, I will try my best to do Chairman Chen's work. It's hard to say whether it will work or not. After all, we have already

Promise to customers that there will be no price increase this year."
Chapter completed!