"What's wrong? I think your expression seems quite complicated?" Fan Heng asked his son Fan Wuyi.

Fan Wubing shook his head, and replied with mixed joys and sorrows, "How can I say it, but my mood is more complicated now, Baosteel has increased its price."

"Baosteel often raises prices, what does that matter?" Fan Heng wondered.

In Fan Heng’s impression, the price increase in the steel market means the recovery of infrastructure, which means that the impact of the Southeast Asian financial turmoil is moving away from China. This should be considered a good thing, right?

"Good and bad luck!" Fan Wubing explained to Fan Heng, "If Baosteel's price increase this time is in line with the market trend, it will be fine if there is a need for price increases, but according to my intelligence, the Japanese Mitsui chaebol is gradually Controlling this key domestic steel company is one of the most worrying."

In fact, the increase in the price of steel raw materials will certainly drive the collective price increase in the upstream industry, and some low-end raw material suppliers, such as iron ore supply and coke supply, will move randomly, swarming. Get involved in this price hike.

Only when the domestic market has been effectively regulated. Baosteel’s sudden arrival of such a move is obviously untimely, but for Jiangnan Province, it is not bad news, or good news.

After the Jiangnan Province introduced a huge amount of capital from Indonesian Chinese investment and steel companies, the steel and metallurgical industry has experienced a very rapid development. The funding problem that restricted the overall development of the industry has suddenly been completely resolved, then what follows is Explosive growth.

In the past five months alone, the output of steel companies in Jiangnan Province has doubled, which has spurred the rapid development of various downstream processing industries, and has also caused the fiscal revenue of Jiangnan Province to start to increase significantly. More importantly It provides a strong guarantee for the foundation laying of the family car manufacturing industry that is about to begin in Jiangnan Province.

The price increase of Baosteel, which is a weather vane in the domestic steel market, directly led to a collective increase in sales in the steel industry. That is to say, key enterprises in Jiangnan Province suddenly took a free ride on the fast show and enjoyed huge amounts from the very beginning. Profit.

Naturally, with the strengthening of the steel market, the iron ore market will also rise, but due to Fan Wuyi’s investment in iron ore mines in Australia, Rio Tinto and BHP Billiton did not immediately increase the international iron ore Export prices, but chose a more cautious wait-and-see attitude.

Before Jiangnan Province, following Fan Wuyi’s advice, it signed a 50 million tons iron ore supply contract with Rio Tinto and BHP Billiton, which can guarantee that demand within one and a half to two years will not be affected by price increases. Influence, in this case, the rewards are extremely generous.

So when Fan Heng heard about Baosteel’s price increase, he was not worried, but rather relaxed. The reason is that the increase in steel prices is nothing less than a boost to the steel industry in Jiangnan Province, which is under development.

But the disadvantages are also obvious. The rapid increase in steel prices will inevitably lead to the increase in the cost of various infrastructure projects, which will cause prices to re-enter a new round of rising. This is very unfavorable for the overall situation. This big order is for all Chinese people. To pay.

Fan Heng thought for a while, and he knew that Fan Wuyi was worried, but he also said to his son, "There are many factors that cause price increases, and the rise in the steel market is just one of them. We can do nothing about this. Fortunately, Jiangnan Province has A certain amount of reserves will not be in a hurry."

What Fan Wubing thought of was another matter.

At present, the domestic steel market is booming and prices are rising, so my own layout in Australia can also be carried out on a large scale at this time. After all, the Fan's iron ore investment company, which has been prepared for a long time, should also make its debut.

Baosteel’s price increase was indeed an introduction. The next day, Rio Tinto and BHP Billiton announced a 40% increase in iron ore prices, from the original ton price of US$18 to the current ton price of US$25. .

If it were not for Fan Wubing to make Jiangnan Province sign a large order in advance, 50 million tons of iron ore, calculated based on the original price of 18 US dollars per ton, now rises to 24 US dollars, which would require an extra payment of 350 million. Ten thousand U.S. dollars, equivalent to RMB 3 billion.

Although more than 3 billion RMB is not enough in the face of big capital, in 1998, it was enough to save more than a dozen large enterprises in Jiangnan Province. This is still a large amount of money. By coming and going in this way, Fan Heng has a lot more money on hand.

The situation in Western Australia is still calm. Fan's Iron Ore Investment Company is mobilizing a large number of workers to build a port leading to the sea and a railway transportation line connecting the port and the mining area.

The railway line with a cost of up to 2 million Australian dollars per kilometer is a key project of the Fan Investment Group. At present, only about one-third of the 300 kilometers of railway has been built. The direct investment has reached 600 million Australian dollars. In other aspects of the investment, a total of 2 billion Australian dollars will be invested. This amount of money seems to be quite scary, especially for an iron ore producer. To make this money back means that it needs to be sold. Produce more than 200 million tons of iron ore.

However, Fan Wubing also considers a factor of rising prices, so he hopes to solve this problem through the capital market. In this case, the money raised through the capital market can soon be used to build factories, railway lines and ports, but If prices rise too fast, they will relieve their pressure on repayment.

However, if you want to do this, you also need to give investors confidence that your company can indeed ensure that profitability and production capacity are equally excellent. This confidence is more difficult to establish.

"But now this opportunity is here." Fan Wubing said to Fan Heng with a smile, "Our Fan's Iron Ore Investment Company in Western Australia will sign a 20 million tons supply contract with Jiangnan Province. The price is calculated at 70% of the current price of iron ore."

Fan Heng was stunned for a moment. I don’t know what Fan Wubing meant, but if calculated at 70% of the current price, it would be equivalent to Jiangnan Province being able to get 20 million tons of iron ore at the price before the price increase. It's a stone, this is how one billion RMB has been saved.

"If you do this, will the loss be too great?" Fan Hyung asked after a long pause.

Although the purpose of his son’s approach is not very clear to him, it’s really clear that this is really profitable. Such a large business will only make Jiangnan Province more special and more profitable compared with other provinces. ability.

Fan Wuyao said, "This price is secret, but once the order quantity is confirmed, Fan's Iron Ore Investment Company has a firm foothold in Western Australia."

For foreigners, contracts are sacred and inviolable. Once your company gets a huge order, investors will flock to it with interest. Now Western Australia's Fan's Iron Ore Investment Company is brewing in Australia's listing and financing, if such a large order is suddenly signed at this time, it will definitely make the process of listing very simple.

This can be regarded as an empty glove white wolf method. It only needs to invest a small amount of money in the early stage to move the entire project, and then use the power of the order to attract a large number of investors, and raise funds for later construction through the way of stocks. Your own investment risk in this project.

It can be said that Fan Wubing's investment in this project will not exceed 300 million Australian dollars, and if it is operated properly, the company can raise billions of Australian dollars to maintain the follow-up project through stock trading. In other words, Once the company's listing and financing is successful, it will be invincible.

Even if the company is transferred directly, it is enough for Fan Wuyi to easily earn billions of Australian dollars or more.

Fan Heng was a little dizzy by his son’s capital operation methods. Although he has been studying economics very carefully, he still has trouble in the face of such high capital operation methods. Know the doorway inside.

However, Fan Wubing is not much interested in giving him a detailed explanation, because the process is simple to say, and there are still many skills in operation, especially the grasp of timing and the grasp of investor psychology, which are very important. .

People who do not have deep capital operation skills cannot play such a big business. This is also because although there are many players in the capital market~lightnovelpub.net~, there are very few people who can make a name for Liwan. That is a Buffett, and the financial giant is just a Soros, the truth is the same.

"Well, there is one thing I have figured out anyway." Finally, Fan Heng touched his chin and said to his son. "The Jiangnan Province signing this purchase contract can save one billion yuan, even if you sell iron ore to others. It makes money. But you will not suffer a loss. Instead, you will be sought after by investors because you have won large orders from overseas, and you will get rich returns from the capital market? Is that right?"

Fan Wubing nodded and replied, "Yes, that's what it meant."

"Then how should we cooperate?" When Fan Heng thought that another great achievement would fall to his own head, and that it would be of great help to his son's career, he was a little eager to try, so he humbly asked for advice.

"This matter still needs to be discussed for a long time. The most important thing is that we can't reveal the slightest noise before. When the time comes, we will throw out this contract, otherwise we will not achieve our goals sooner or later." Fan Wuyi Replied.

Fan Heng nodded, agreeing that confidentiality is naturally the top priority, which is not only necessary in international business, but also vital in domestic business activities.