Chapter 1936: Industry consensus reached

Thinking of this, Yin Jun began to think about more important issues.
Should iron ore price increase?
From a practical point of view, the price should really be raised.
In the past 10 years, the global economy has developed rapidly and various constructions have continued. However, the price of iron ore has not increased much, but it has slowly increased from 10 dollars in 70 years to 20 dollars in 85 years. Ton.
Iron ore companies that have missed such a golden stage have at least lost tens of billions of dollars in revenue.
This is completely incompatible with supply and demand.
As everyone said, all kinds of costs are actually rising, so this price increase is more than the 10 US dollars in 70 years. In fact, the current 20 US dollars is nothing at all, and it does not make more money.
It took only 15 years to increase the price by 100%. If compound interest is calculated, the average price will be less than 4% a year.
And doing business is definitely not about thinking about what I have done to raise prices or run out of inflation.
To do business is to make money. If you can make more money, why should you make less money?
The same is true of Yin Jun doing business.
If it is not for a more ambitious purpose, how could he sell the house at a low price, how could he sell various products at a low price in the Mainland, and give the mainland suppliers a high price?
Therefore, it is appropriate to raise prices to earn money. As much as you can, it is the essence of business.
Want to increase the price, but can you increase the price?
This question is not easy to answer.
In 2011, the price of 63% tasted iron ore skyrocketed to the highest level of $ 191.7 a ton, but at that time it was almost priceless.
However, generally speaking, although the price of iron ore fluctuated between 2006 and 2011, the average price remained stable at around US $ 130.
Why is there such a big increase in the price of iron ore during this period?
The reason is simple, with the addition of the Chinese market.
In particular, the large-scale infrastructure operation started in 2008 has contributed to the surge in iron ore.
If there is no huge demand in the Chinese market, and there is no chaos and individualism in the Chinese market, it is impossible for iron ore to increase prices so wildly.
Since the 1960s, the most important iron ore demanding countries in the world have been Japan, Korea, and South Korea. Due to the acceleration of large-scale industrialization, the amount of steel used in various automobiles, infrastructure, and ships has increased dramatically. 'S demand accounts for 40% of the world.
Both Japan and South Korea have almost no iron ore resources, and all iron ore needs to be imported.
But the steel companies in these two countries are very united. They unite and negotiate with the iron ore resources as a whole. If you don't agree, don't buy.
It is precisely under this tough buyer's market that the price of iron ore has only been rising slowly, and it is not comparable to the profits they earn from these steel companies.
Five years ago, in 1980, Rio Tinto joined forces with BHP Billiton and wanted to raise iron ore prices substantially.
As a result, the Japanese and Korean steel companies no longer bought iron ore from them, and replaced them with other iron ore companies.
Because of their large demand and good credit, there are naturally iron ore groups willing to supply them.
BHP Billiton and Rio Tinto, which lost two major customers, lost a total of 60 million tons of iron ore orders in those two years. It was really miserable.
After 2002, the Hua Guo Iron and Steel Company, which happened to be increasing demand, did not have the unity as Japan, Japan and Korea. Everyone talked about each other, and naturally they were broken down by each, resulting in iron ore prices. Soaring, let others earn a lot.
But at the same time, at the same time, the purchase prices of iron ore in Japan and Korea are much lower than ours.
This means that these iron ore giants sell us high prices, but they are much cheaper to sell to others.
This is really annoying.
Looking back.
Because China's infrastructure has not officially begun to take off, there is not much demand for iron ore, and there are many iron ores in China. Therefore, the iron ore pricing power is still on the buyer's side.
To be precise, it is on Nippon Steel and Pohang Steel who came today.
The two of them happened to be representatives of Japan, Japan, and South Korea to negotiate iron ore prices.
And both companies have their own shares in Rio Tinto and BHP Billiton.
This makes the situation very complicated.
Yin Jun remembers very clearly, from 80 years to about 2002, the average price of iron ore was 20 US dollars for more than 20 years.
Even if there are ups and downs in the middle, in general, these iron ore companies have not had much success in raising prices.
Conversely, the price increase they have brewed this time has not been successful.
But this is a past life.
There will be Yin Jun in this life, which will definitely be different.
"It's time to raise the price." Yin Jun raised his head. "This price has been maintained for several years. We can't watch others eating meat. Can't we even drink a soup?"
"That's the reason!"
Several people were overjoyed after hearing the words, but they did not expect Yin Jun to be so straightforward and directly expressed his attitude.
But Datian Zhengping and Jin Shanxin frowned.
"Everyone, we don't think things can be so hasty decision." Jin Shan channel, "We have always signed a long-term agreement price, and the time is far from yet."
"It's different, the situation is different." Casseno waved. "We have been very difficult in the past two years. The profits are very meager, and they are not enough to support normal operation. I hope to get some understanding."
"If the spirit of the contract is said to ruin, then ruin it?" Datian Zhengping stared at them. "So how can we do business in the future? Can we trust you?"
The two were really a little flustered.
They didn't expect to talk about this price increase, and they were not prepared.
And compared to the negotiations five years ago, this time joined the two giants of Vale and Kirin Mining, the momentum has not only increased a little!
It is no exaggeration to say that Vale, the world's largest iron ore company, adds a top ten Kirin mining company, and there is also Kirin Group owner Yin Jun who is the world's richest man and media tycoon. The situation seems very complicated at once.
Jin Shanxin even a little dizzy, he directly asked Yin Jun: "Mr. Yin, you have been the idol of countless people in our country, and the pride of our Asians! Why do you want to do such a contract tearing thing? This is in line with Do you have the moral character to do things? "
Yin Jun was surprised. "Mr. Jin, my mine has not started production yet. What does your previous contract have to do with me?"
"Hahaha ..."
Simone took the lead and laughed out loud.
Jin Shanxin could not wait to find a place to go underground.
Da Tian Zhengping can't wait to shove him into the ground.
Because he was so troubled, the iron ore merchants were awkward, and it immediately faded.
"It's okay not to tear up the contract. The machine on our side is malfunctioning, various accidents happen, and the supply is insufficient, so don't blame us." After laughing, Hagens said.
He said this, in fact, the same as he said a few years ago.
But the difference is that this time he added a strong ally.
"The Brazilian government has questioned us several times about the long-term sluggish energy export, and we think we have the suspicion of selling assets cheaply," Casenio said. "If it is the national force that prevents the execution of the contract, neither About us? "
"Regarding the price of iron ore and the profit ratio of the iron and steel group, I can start a large-scale investigation on the ABC television station to show the people the gap between the two." Yin Jun then continued He said, "On the one hand, the iron and steel group has been earning a lot of money, on the other hand, it is the exhaustion and hard work of resource companies. In the face of all kinds of accusations and embarrassments, they can only survive with little profit."
Several presidents of the iron ore group, their eyes lit up.
Simone immediately said without hesitation, "We have been very supportive of Rio Tinto for shooting such a socially meaningful survey! How much does it cost, Rio Tinto fully sponsors."
To do this kind of social survey, if it reaches two or three periods, the cheapest is hundreds of thousands of funds, and the expensive ones only need about 1 million.
This kind of money is nothing at all, but the meaning revealed can be different ~ EbookFREE.me ~ Those steel companies that make good money will definitely be scolded as well, and the situation of iron ore companies will also get a lot Improvement.
On the contrary, Da Tian Zhengping and Jin Shanxin's faces became even more gloomy.
If so, the life of the iron and steel company will not be easy.
In particular, they deeply understand that if the television station wants to catch their mistakes, then the heavy pollution problem of the Iron and Steel Group is really a catch.
The influence of ABC News, one of the top three news media groups in the United States, will definitely make them stink.
"Mr. Yin, this is not fair!" Datian Zhengping resolutely protested, "So you will become an enemy with all our steel companies!"
"Enemy? No!" Yin Jun shook his head, "I will let them report fairly and openly! If you tell the truth, you will become your enemy, then I still have the responsibility."
"Correct!"
Hagens really admired Yin Jun at this time. No wonder this young man became the richest man in the world at such a young age. How clever!
"you guys……"
With no words to speak, Jin Shanxin could only turn into annoyance, "Forgive me, I can't stay here anymore, goodbye!"
Watching him turn around and leave, Datian Zhengping suddenly understood.
This is Jin Shanxin's retreat, and he wants to get a little time to relax, so he wants to take countermeasures.
Thinking of this, he nodded to everyone and turned away.
Looking at the Beijing shadows of the two, Casenio smiled coldly, "Come here again? It's a pity that it won't work if it's a few more times!"
"This time, our confidence is firm. We must recapture what we lost 5 years ago!" Between the words, Simone's face was slightly grim.
The fiasco five years ago, but let him be impressed!