Wealth

v5 Chapter 552: The fall of Baosteel

"I would like to invite Zi Qi, the host of "The Same Song", and the special guest Mr. Fan Wubing, chairman of Fan Investment Group, to sing "For whom" for us." The host of this evening party announced the program arrangements loudly.

I have to say that only those who understand the inside know that there are too many childcare activities in the various performances held by CCTV.

Fan Wubing knew these things very well because he watched the rehearsal of the normal performance. So when Ziqi interacted with her host and guests to sing, she was very calm. After all, it was not her two who pulled the black bull. .

After hearing the host's announcement, Zi Qi walked out, waved to the audience with the microphone, and then made an inviting gesture to Fan Wubing who was sitting in the guest seat under the stage.

Fan Wuyao is surrounded by distinguished figures. There are members of the Politburo and celebrities in the business world. The business celebrities who can sit here are basically worth billions of dollars or more, and many of them are new domestic ones. Rich and powerful people, it's just that everyone doesn't know them very well now.

"Mr. Fan, tell you to go up." The people next to him knew that Fan Wuyi was very bad, and when they saw this scene, they all said to him happily.

Fan Wubing laughed and stood up, then without taking the ladder, he jumped onto the stage more than two meters from the ground below, and suddenly aroused a cry of exclamation. Only then did someone think of it. President Fan is not only a business tycoon, but also a master of Chinese martial arts. He has beaten two Japanese masters to death with one punch before.

So the audience suddenly remembered the warm applause, everyone applauded.

Fan Wubing came on stage, waved to Sifang, and then took a microphone from Ziqi's hand.

The two people looked at each other at a distance of more than two meters, and then the lights dimmed, and then slowly lit up with the prelude of the music.

"Mud is all over the trouser legs

Sweat soaks through the back

I do not know who you are

I know who you are for

For whom

For the harvest of autumn

In order to spring back to the wild goose

Full of enthusiasm to sing youth without regrets

I don’t know when my comrades will return

Who are you

For whom

My comrade-in-arms when will you return

Who are you

For whom

My brothers and sisters don't cry

Who is the most beautiful

Who is the most tired

My folks my comrades in arms

My brothers and sisters

sisters--"

The two people did not talk nonsense, and directly expressed their respect for the soldiers who participated in the flood relief. However, some sensitive people noticed that they were separated by two meters before singing, but when they finished singing. At that time, the hands of the two people were already pulled together.

In any case, this. The party was very successful. When the second round of donations came, it was corporate donations. At this time, a wave of enthusiasm was set off. Many companies that have emerged enthusiastically began to donate. On the one hand, they expressed themselves. The support of enterprises to the people in the disaster areas is, on the one hand, the economic strength of their enterprises.

By the end of the day, the total donations raised had exceeded 2 billion yuan. In addition, some off-site donations were not counted. It is estimated that the total amount can exceed 5 billion yuan.

This number is a bit beyond the organizer's expectations.

After finishing the party here, Fan Wubing went home with a little excitement.

Ziqi estimated that there would be a celebration party, so there was no chance to come out to play with him, so the two of them broke up after singing.

Immediately after returning home, Fan Wuyi's phone rang, but it was news from the headquarters that Baosteel had increased its prices.

"Baosteel's price increase again?" Fan Wubing felt more complicated after hearing the news.

Baosteel, which has always been regarded as the vane of the market, raises prices against the wind in this sensitive period. What kind of profit chain is behind this?

Beginning last year, due to the impact of the Southeast Asian financial crisis, steel prices plummeted. They were in a state of recovery until April this year. Since then, the price of steel futures has been greatly increased due to the explosion of steel futures. After August, the ex-factory price has been in a state of decline until recently. Although there have been clues about the price adjustment this time, it was only by way of canceling the discount.

Baosteel's price increase is nothing in itself, but the timing is indeed a bit sensitive.

Because soon, Baosteel will negotiate with iron ore suppliers on the quantity and price of imports for next year. At this time, the sudden announcement of a price increase is obviously not good for iron ore price negotiation. According to data, it is not the first time that Baosteel has raised prices before iron ore price negotiations.

Fan Wubing knew very well that Baosteel actually had a strong Japanese ancestry. At that time, Mitsui & Co., Ltd., Japan’s largest comprehensive trading company, had long seen that the Chinese market would drive up the spot price of iron ore, thus creating Nippon Steel, Mitsui & Co., and Merchant Mitsui. , Shanghai Baosteel, Brazil Vale is a community of interests.

Mitsui's penetration of Baosteel can be traced back to the beginning of Baosteel's establishment. As early as 1977, Baosteel introduced technology and equipment from Nippon Steel, Japan’s largest steel company, and Mitsui & Co. owns 20% of Nippon Steel’s shares. At the same time, it is the backbone of the Mitsui Consortium. Toshiba and Ishikawajima Harima Heavy Industries cooperated with Nippon Steel to become Baosteel's equipment suppliers, but since then Baosteel can only choose to import iron ore from Australia and Brazil.

As early as the 1940s and 1950s, Mitsui & Co. began to collect information and purchase iron ore extensively overseas. By signing long-term contracts with foreign countries, it further invested in mines, and finally became the board of directors of mining companies. Mitsui & Co. has accumulated rich experience in iron ore trading, and formed a community of interests with mining companies through long-term trade contracts, investment, equity participation, establishment of joint ventures, and participation in operations.

Nippon Steel Corporation and Mitsui & Co. are a community of interests, and they share a mutual shareholding and joint investment relationship; secondly, Brazil's Vale and Australia's two extensions have also been firmly bound and become part of Mitsui's global layout.

According to the information held by Fan Wubing, this year's construction and board stocks in major cities across the country have doubled year-on-year, and the stocks remain high. It stands to reason that Baosteel has no reason to increase prices.

However, he also noticed that Baosteel’s price increase is mainly determined by the relationship between product supply and demand. There is strong demand for downstream automotive and home appliances. At the same time, costs drive prices up. Under the expectation of price increases for iron ore and coke, Baosteel’s price Rise in advance to digest costs.

The most unpleasant thing is that after the Japanese chaebol controlled domestic steel companies, it not only made the domestic iron ore acquisition constrained, but even Baosteel also has a Mitsui lineage in the maritime logistics link. Merchant Marine Mitsui carries more than 10 million tons per year for Baosteel. Of iron ore.

It can be said that Baosteel's reliance on Mitsui's technology, talents and logistics has been entangled and deeply rooted since the day it was born. The main production equipment and core technology are all from Nippon Steel.

As for the steel processing bases jointly operated by Mitsui & Co. and Baosteel Group in China and the production bases under construction, although Baosteel has a controlling stake in the joint venture due to policy restrictions, Mitsui’s power is not limited to this.

In some companies, although Baosteel's investment ratio is 51%, the chairman is appointed by Mitsui & Co., and Baosteel Group guarantees that the loan is also guaranteed by a letter of guarantee provided by Mitsui & Co., Ltd.

Mitsui controls Baosteel in China, Pohang Steel in South Korea, and the Tata family in India. The layout of each place is through joint ventures and cooperation with the largest local companies to graft capital, industry, information, and circulation. Finally, Control the entire industrial chain. This situation makes Fan Wuyao more worried.

Beginning in the 1990s, under the influence of the “Going Global” strategy, learning from the Japanese and Korean models and making Chinese companies bigger and stronger has become a mainstream trend. During this period, there was a trend of researching general trading companies.

However, with the rapid development of the Chinese economy, the inflation rate in 1994 reached 21.7%. The Chinese government began to shift to the US economic model in 1995, using macroeconomic management measures to control interest rate leverage and monetary policy to intervene in the economy. The deposit interest rate once rose to about 12%, and value-preserving savings over a five-year period can also get a value-preserving interest of about 12%. That is to say, the interest rate of long-term deposits reaches almost 25%. This kind of high interest rate is probably rare in the world. The result of a series of policies is the withdrawal of currency and the disappearance of inflation, which also caused a sudden brake on economic development.

The abnormal changes in China's macroeconomic situation have not attracted the attention of Japanese companies ~ lightnovelpub.net ~ As a comprehensive trading company, an important function of Mitsui & Co. is to assist the consortium's affiliates to enter overseas markets. At this time, because the Chinese market has not really opened up, many companies of the Mitsui Consortium are investing in Southeast Asia on a large scale, but the target is still the Chinese market. At the same time, Mitsui & Co. has led Japanese companies to establish a number of joint ventures in China.

Beginning in 1992, Baosteel was the leader to conduct a pilot work on liquidity debt clearing, and then the triangle debts of key enterprises were cleared in four industries: coal, power, forestry, and non-ferrous metals. However, the triangular debt reached 800 billion yuan in 1996. At this time, triangular debt caused companies to blindly expand production, forming a surplus of products, and gestating an economic crisis.

At that time, many large state-owned enterprises adopted the Western accounting system, and they were exposed to insolvency. They were forcibly cleared of triangular debts indiscriminately, and eventually led to massive blood loss and bankruptcy. Moreover, China's independent industrial system was due to the symbiotic relationship between enterprises. The destruction continues to disintegrate.

At this time, large pillar companies like Baosteel lost support from many domestic companies after the triangular debt was cleaned up, and formed a disconnected relationship with domestic foreign trade, shipping, and financial companies. Instead, they became industrial organizers like Mitsui & Co. Bring opportunities.

It was also at this time that Baosteel began to fall into the hands of Japanese companies.