Wealth

Vol 3 Chapter 146: Iron ore

"The price of iron ore has risen again." Fan Wuyao flipped through today's newspaper, and said with some annoyance.

"Is the price of iron ore going up, does this have anything to do with you?" Feng Ping, who was helping Fan Wuyao make breakfast, asked in surprise.

Because he was going to help Fengmao do the most thorough treatment today, Fan Wubing came to the hospital very early and did not eat breakfast. Feng Ping volunteered to get them food, but the conditions in the hospital are naturally not comparable to those at home, either. It's just a rough fiddling.

Of course, the price increase of iron ore has a lot to do with Fan Wuyi.

To build the Panshi Airport, where tens of thousands of tons of steel will be used, Fan Wubing plans to carry out technological transformation of the iron plant in Shuixi County so that it can produce a large amount of steel. However, there is not too much steel near Panshi. Many high-quality iron ore, which must rely on imports.

If you consider imports, then the main choices are nothing more than Vale, BHP Billiton and Rio Tinto.

And his choice is naturally the world's largest iron ore producer and exporter, Brazil's Vale. Brazil is extremely rich in iron ore resources, accounting for about 6.5 percent of the world's total reserves, making it the world's largest producer of rich iron ore. Brazil's Vale is the world's largest iron ore producer and exporter, and the largest mining company in the Americas. It is known as the crown jewel of Brazil and the engine of the Amazon region. The company was established in 1942. In addition to iron ore, it also deals in mineral products such as manganese ore, aluminum ore, gold ore, pulp, ports, railways and energy.

Vale’s iron ore output accounts for 80% of Brazil’s total output. Its iron ore resources are concentrated in the Iron Four Corners area and the Barra State in northern Brazil. Carajás iron ore, etc., have reserves of about 4 billion tons of iron ore.

BHP Billiton and Rio Tinto are mainly focused on Australia. From the perspective of the difficulty of operation, it is easier to cooperate with Vale. The back-end bosses of BHP Billiton and Rio Tinto are British. These guys are too conservative to deal with.

When dealing with these guys, the mainlanders are no longer useful. Therefore, Fan Wubing used his overseas company to come forward.

Now that the price of international iron ore has risen by about 15%, it is also a great loss for Fan Wuyao. Therefore, seeing the news, he naturally felt a little unhappy in his heart.

Since the reform and opening up. The Chinese economy continues to maintain a relatively high degree of growth. Steel production is growing rapidly. However, the potential of domestic mines to increase production is limited. The iron ore grade is low. The mining cost is very high. Ore production can no longer meet the needs of the growth of steel production. As a result, foreign trade imports have increased rapidly. In recent years, the average annual growth rate of imported iron ore has been greater than that of steel production.

The import of subway ore through the port's foreign trade is about 40 million tons. Iron ore has become the largest type of cargo in China's foreign trade bulk import and export. It accounts for about 10% of the global ore shipping volume. It occupies a pivotal position in the global iron ore transportation.

However, because of the domestic subway ore imports, companies do their own things. So it's a bit confusing. Domestic steel companies have not formed a consortium to negotiate pricing power with international iron ore giants. Therefore, the price has not been mastered. Only passively accept the land price set by others.

The northern region is an important steel production base in China. There are a large number of iron and steel enterprises here, the distribution is scattered, and the scale is similar. The ore required by each steel plant is supported by the surrounding mines. Imported ore is mainly used for ore blending or to make up for the deficiencies of own mines. Most of the imports are around one million tons.

There are many iron and steel enterprises in the areas along the Yangtze River. There are Baosteel, Shanghai Iron and Steel, Meishan Iron and Steel, Maanshan Iron and Steel, Wuhan Iron and Steel and other local iron and steel enterprises. Steel production accounts for about 30% of the country's land. The iron ore resources in the region are in short supply. It is the region with the lowest degree of guarantee for self-produced minerals in the country. Therefore, it is also the region with the largest amount of ore imported by foreign trade. The region's foreign trade imports account for more than half of the country's iron ore.

Due to the characteristics of the construction sites along the river for most steel companies and the differences in the conditions of the river and sea channels. Most of the iron ore required by steel mills along the Yangtze River is transferred in Ningbo Beilun Port.

In the early 1980s, in order to cooperate with Shanghai Baosteel's construction, the Beilun Port Area of ​​Ningbo Port newly built China's first 100,000-ton iron ore specialized wharf and supporting transshipment facilities. The scale of China's import of mines during this period was small, only a few million tons. After the 1990s, with the rapid development of China's steel industry, iron ore foreign trade imports continued to increase. Due to the lack of large unloading docks, many ports use 30,000 to 50,000 ton bulk cargo berths to unload ores. A large number of foreign trade imported mines can only use ships of less than 50,000 tons to directly arrive at the port. It is especially common in northern regions. Not only the loading and unloading efficiency of the terminal is low. Transportation costs are also high, causing huge economic losses to the hinterland steel mills.

Thinking of years later. Because of the iron ore matter, domestic steel companies have been forced to survive and die. Fan Wubing feels that he should do something now. At least the Japanese have not had a big stake in Australian and Brazilian iron ore. The privatization of Brazil’s iron ore industry has not yet been launched on a large scale. Now if we can intervene in these three iron ore production and export companies and control a certain amount of equity, it will be very good for our future development. , Even for other domestic steel companies, it is also a relief.

However, if you really want to acquire large companies like Rio Tinto, BHP Billiton, and Vale, the funds involved must be very large. Based on the current situation, the acquisition of any of these companies will require hundreds of 100 million U.S. dollars as support.

Moreover, there are some more complicated political factors involved. No one is willing to hand over the country's largest mineral and land enterprise to foreigners as a controlling shareholder, unless it is forced to do so.

Fan Wubing thought for a while and felt that it would be easier to control Vale, while controlling established companies like Rio Tinto and BHP Billiton is much more difficult. It depends on opportunities. If you operate from the capital market, you may be able to get a percentage. The equity below 30, in this case, the words can count.

However, this cannot be done in a day or two. Therefore, Fan Wuyao considered it. Now, by reducing the large sum of funds into zero, taking advantage of the downturn in the international stock market, he first asked the three companies where they were. Infiltrate the capital market of China, and once the opportunity matures, it will launch a large-scale offensive and strive to achieve the goal of more than 30% of the holdings of these three companies at the same time.

With this in mind, Fan Wuyi’s mind is no longer in the hospital. He plans to spend 30 billion U.S. dollars to absorb the shares of these three companies as much as possible. The best goal is to control one of them and participate in two of them. Too much, I am afraid it will be counterproductive, after all, there is an anti-monopoly regulation, this thing is not so easy to deal with.

"Still thinking about things?" Feng Ping shook her finger in front of Fan Wuyao, and asked with some doubts.

For a long time, what Fan Wubing showed in front of Feng Ping and Chen Jingchu was that kind of joking and heartless. Feng Ping had never seen him consider a matter here so seriously. Suddenly he saw it. When Fan Wubing was silent, everyone felt a little uncomfortable.

Feng Ping filled a bowl of mushroom cheese soup that she had made, and handed it to Fan Wuyao, and then made him a piece of pie. Fan Wubing drank soup while thinking about his own affairs, but did not feel Chen Jingchu and Fan Tianlan walk in.

Chen Jingchu walked to Fan Wubing with a face full of spring breeze and said to him, "No disease, those people outside of my house have all disappeared from the ****, which is really strange."

After being harassed by these people for more than a week, there was no freedom of action, and the family members suffered greatly. Chen Jingchu was disgusted with these nasty guys~www.wuxiaspot.com~ after these people suddenly disappeared. Naturally, Chen Jingchu was greatly relieved, but after thinking about it, he felt a little strange. After all, this matter seemed abnormal.

Not many people know about the conflict at the gate of the Panshi City Government, and the final external propaganda caliber is a joint exercise. Therefore, no one knows what the root of the matter is, and ordinary people naturally have no way of knowing it.

Chen Jingchu didn't know that it was because of him that it was brought out. He just thought that it must have something to do with Fan Wubiao.

Fan Wubing smiled slightly after hearing Chen Jingchu's words. The water in it was deep in his heart.

Because of this incident, many time-honored cases have been brought out. In addition, the personnel of the entire military area have been greatly affected by Fan Wuyi’s subsequent disturbance. Now the top military leaders know that Fan Wuyi cannot afford to provoke. The lord, it's okay to not provoke him. Therefore, the scouts from the art troupe who were squatting at the door of Chen Jingchu's house suddenly disappeared and went back to various places.

The old man was soaked in Fan Wuyi’s light, drank a bowl of mushroom and cheese soup, went out and wandered around, then walked back, and said to Fan Wuyi, "Today we will give Fengmao a complete cure. If you want to complete your work, then you will fight!"

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