Chapter 1926: Price Increase Is Brewing!

Yin Jun directly brought a glass of juice. This was originally prepared for the ladies present, but the young man picked it up without any pressure at all.

Then Yin Jun, led by Casenho, greeted the people present.

There were only a dozen people who were qualified to announce their names in front of Yin Jun, and the rest of the entourage didn't dare to come forward at all.

Although it was a bit funny that Yin Jun was holding the juice like this, no one laughed at him.

After all, the boy's habit of almost never drinking has long been known to everyone.

The partners you want to meet in business must be purposeful and targeted, and you cannot make friends who are impossible to meet, at least until you succeed.

Yin Jun knew who he would face in the future, so he paid special attention to five people.

One is of course Casenho next to him. As the president of Vale, he will always be the person with the most say in the iron ore market.

If Brazil were not too far away from Asia, Vale's influence, or Yin Jun's fear of him, would have increased even more.

The second one is also a middle-aged man with blond hair. His name is Diego Simeone and he is the chairman of Rio Tinto.

Today's Rio Tinto has not yet acquired Australia's Northern Company, and its overall strength is not very strong and cannot reach its peak around 2008.

However, with its more than 100 years of accumulation around the world, it still occupies the position of the third group company in terms of iron ore reserves.

The third is the younger-looking Dom Hagens, chairman of BHP Billiton.

BHP Billiton is also a century-old company. They are also the largest mining group in Australia because they have numerous iron ore mines in the Pilbara of Western Australia, with the second largest iron ore reserves in the world.

Speaking of which, in 2008, BHP Billiton almost acquired Rio Tinto, but in the end the deal was still not negotiated, otherwise this giant would definitely be fighting to the death with Vale.

Yin Jun knows all the presidents of the world's three largest iron ore groups, but there are two other people who Yin Jun also remembers.

One is Shohei Ohta, the representative chairman of Nippon Steel Corporation, and the other is Kim Sun-shin, the chairman of Posco Steel.

The reason why these two steel companies participated in this industry gathering is because they hold a lot of shares in iron ore groups.

For example, in BHP Billiton and Rio Tinto, many shares belong to them.

It's strange to say that they look like they are in their thirties or forties. How come Japanese and Korean companies, which have always ranked their employees based on seniority, actually have such young presidents?

Nippon Steel is basically the world's largest steel group company. They control the most advanced steel technology in the world. Until 2020, the quality of China's steel group is still at the stage of being stupid and rough. It is truly high-end and sophisticated. Steel must be imported from Nippon Steel.

If it hadn't been for the purchase of an aircraft carrier from the big brother after the separation, thereby obtaining valuable deck steel parameters, China would not even be able to produce this piece.

Posco is the number one steel company in South Korea and one of the top three steel companies in the world. In terms of high-precision steel technology, it is not much worse than Japan.

If the same iron ore is used by these two companies, the value ratio of the steel produced is three times that of large groups such as Huaguo Iron and Steel and Panzhihua Iron and Steel Group, or even higher!

If the construction industry, highway industry, automobile manufacturing and other infrastructure projects could not use such high-quality steel, I am afraid that these steel companies would be directly defeated.

Yin Jun is not a god. He doesn't know how to improve the quality of steel, so he can only look forward to it.

I hope that after they get better and more iron ore in this life, they can improve a bit compared to the previous life.

This is a kind of helplessness.

The rise of a country's comprehensive strength certainly cannot rely on Yin Jun alone.

After withdrawing his thoughts, Yin Jun heard Diego Simeone's conversation next to him.

"Speaking of which, our relationship with Hong Kong is quite deep." Simeone said with a smile, "Mr. Mathison, the founder of Rio Tinto Group, his family had a relationship with a Mr. Jardine more than a hundred years ago. We founded a foreign company together, called Jardine and Matheson...Now, Jardine and Matheson is the largest group in your city, right?"

"Third." Yin Jun responded with a smile, "In terms of market value alone, my Kirin Group is first and HSBC Holdings is second."

HSBC is still the largest behemoth in Hong Kong. This refers to the 300 billion US dollars in assets it controls. Its actual market value is more than 120 billion Hong Kong dollars, which is not as good as the 300 billion Hong Kong dollars of Qilin Group under Yin Jun.

However, HSBC's influence far exceeds that of Kirin Group.

Even Jardine Matheson's control ability in Xiangjiang is not much worse than that of Kirin Group.

But Yin Jun no longer paid attention to Yihe Matheson.

From the moment they decided to move out of Xiangjiang, they were destined to continue to decline, while the Kirin Group would only continue to grow and develop, and the gap between the two would continue to increase.

Yin Jun pointed out this point specifically, which is where his confidence lies.

Although the number one in Xiangjiang does not shine much compared to the number one in the United States, the UK, France and West Germany, the number one in a region is still something to be proud of.

Simone didn't care, he just used this opportunity to talk to Yin Jun.

"We at Rio Tinto also have several mines in the Pilbara region, but after more than 20 years of mining, the reserves have long been inferior to the two major iron ore explorations of your Kirin Mining Company." Simeone said enviously, "With 2.5 billion tons of 65% iron ore, plus secondary iron ore that is more than 55%, you will make a fortune!"

"What kind of fortune can be made?" Hagens, chairman of BHP Billiton, sighed. "The price of iron ore has been stuck at the FOB price of US$15 per ton for a long time...but labor costs are rising every year. I really don’t know when I will lose money!”

"Who says it's not?" Speaking of this, Casenho couldn't help but said, "Our labor in Brazil is cheaper than yours in Australia, but the workers are so unorganized that I really want to whip them." Slap them! In this way, the large amount of money we invested in the early stage, as well as expensive equipment, various transportation construction, etc., will be able to recover in one year!"

"In order to develop an iron mine in the Philippines, we built a road five years ago. The price quoted at the time was US$2 billion and it took three years to build it. But now it has not been completed in five years, and the cost has already reached as high as 3 billion U.S. dollars, it is estimated that it will cost 4 billion U.S. dollars in the end!" Simeone continued: "Look, these costs are so high! Most of the money we make is spent on these mining and transportation expenses. "

Yin Jun felt a little puzzled when he heard this.

Why does it sound like you are complaining when you talk about it?

Isn’t this how the iron ore group operates?

If you didn't have these various ancillary constructions, various roads and railways, do you think the local government would allow you to mine iron ore at such a low price?

Everyone knows that digging iron ore makes money, but why do many companies dare not enter this industry?

Isn't it because these ancillary constructions require large capital investments that only large companies can afford them?

"The price of iron ore has been sideways for so many years and has been at such a low level. However, the companies that use our iron ore to refine steel are making huge profits, with annual profits of billions of dollars. This is too It’s unfair.” The president of another iron ore group next to him also started complaining mode at this time.

"They have caught up with the good times!" Caseno nodded, "In the past ten years, there have been a lot of construction projects in Japan, South Korea, the United States and Europe. The same is true for the shipping and automotive industries, which naturally require a large amount of steel."

"We are also under a lot of pressure." Ohta Shohei, who had been listening to them but said nothing, quickly answered, "Because there are too many competitors, steel cannot be sold at a high price, especially in the final stage. What makes money is almost always shipping very little, so we just rely on quantity to earn some hard-earned money.”

"hehe."

Faced with his explanation, many people sneered.

All the major companies here, except for Kirin Group, are listed companies, and it’s not impossible to see their annual listing reports every year.

The iron ore companies here have good profit margins, but the unit price is very low, resulting in a very small total profit.

The profit margin of steel companies is lower, but their unit prices are high and they ship a lot, so of course they make more money.

There is always a conflict between the raw material side and the processing industry side, and there is nothing we can do about it.

"There is something wrong with what Mr. Ota said. After all, everyone's position is different. I think we should discuss it and see how much the price should be increased?" Finally, Hagenstu came to see him.

"That's a good idea!" Simone supported without thinking.

"I think we can consider it." Caseneo turned to look at Yin Jun, "What do you think, Mr. Yin?"

For a time, countless people's eyes were focused on Yin Jun.

Seeing them express their opinions without hesitation, Yin Jun suddenly understood. I'm afraid this is the purpose of this industry meeting, right?

The reason why he called me here must be because he wanted to reach a unified opinion with himself.

After all, although the scale of Kirin Mining Company is only among the top ten in the world, Kirin Mining is preparing to ship 50 million tons per year, but it has already reached the top three standards!

This news cannot be hidden from anyone.

Because the contract signed with the shipping company, as well as Wei Li's public statements, all indicate that this is the established policy of Qilin Mining Company.

If everyone raises prices, and only Kirin Mining does not raise prices, the price increases will not be sustainable, and everyone will be defeated by steel companies one by one.

Therefore, Yin Jun must also agree, so that everyone can work together to increase the price.

As for the small mining companies, they cannot resist the alliance of giants. They can only follow the industry leaders.

…

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