Today's cocktail party is just a pretext. This gathering of several parties is mainly for their own interests. The global stock market crash has just happened not long ago, which has once again made the already weak global steel market worse. Affected by this, the global iron ore

Prices took another hit.

This time not only representatives from Rio Tinto, BHP Billiton and Xinma Iron Ore Development Company arrived, but also the vice president of Brazil's Vale.

The stock market crash has directly weakened the purchasing power of various places. Taking cars as an example, whether it is Bentley Group, Toyota, Volkswagen, General Motors, etc., sales in November have declined to varying degrees, especially luxury car brands, which have been affected by this.

, development is even more difficult. Li Guangyu estimates that luxury car brands will be transferred in large quantities in the next few years.

When these luxury car brands want to make money, they will probably have to wait until the mainland's economy develops. The mainland auto market will save countless luxury car brands in the future.

Due to the impact of the stock market, investment has slowed down, business expansion has also hit the pause button, unemployment has risen, and living standards have declined, which has also led to a weakening of demand for steel.

And another important reason is that the global shipping industry is in a cold winter. Numerous shipping groups have gone bankrupt and many ships have been directly scrapped. This has also dealt a heavy blow to the steel industry.

This time several parties came together with only one purpose, which was to maintain the stability of iron ore prices and prevent the resources in their hands from being sold at a low price.

In a large conference room, representatives from several parties sat down respectively. As the inviter this time, Franjie first spoke up and said: "Our companies are currently the largest mining companies in the world, and they are also iron ore producers."

The main control of supply is that the current global development is very unfavorable to our iron ore industry, and iron ore prices are facing unprecedented challenges.

This time we are asking the shareholders of Xinma Iron Ore Development Company and Xingyuan Group to come, hoping that the two parties can join our price alliance to jointly stabilize the price of iron ore and safeguard the common interests of all of us."

In the past, they forced Korean and Japanese companies to sign iron ore supply price treaties because the three of them monopolized most of the world's iron ore exports.

Now, the iron ore reserves in the hands of Xingyuan Group and its subsidiary Xinma Iron Ore Development Company are astonishing. If they do not join this price alliance, they will not be able to achieve price setting and monopoly.

Don’t think that the Japanese consortium and the Korean consortium were forced to sign such a treaty before, and they will oppose it now. It would be a big mistake to think that way. No one will have more money to live with. I used to hate it or even hate it, but it was because I didn’t have the resources.

That's it, now that they have such resources in their hands, of course they also hope to monopolize prices so that they can obtain greater benefits.

And Li Guangyu obviously does not want the iron ore to be sold at a low price. Although the Xinma Iron Ore Development Company is a multi-party joint venture, he holds 30% of the shares and is still the largest shareholder of this company, and is a member of the Xiangjiang Consortium and the Hsinchu Bank Consortium.

He also has shares.

In addition, his Xingyuan Group also owns several medium and large iron ore mines, so falling iron ore prices will not do him any good.

Li Guangyu said aloud: "I personally support the price alliance, but we still need to discuss it carefully when the price is determined. We don't want to have no say in the price."

After hearing that Li Guangyu agreed to join the price alliance, Franjie, Patterson and Miles Johnson, vice president of Vale Brazil, were very happy.

As for Li Guangyu's right to have a say in price setting, there is no problem. If Xingyuan Group does not agree with its price, they will not be able to implement it. To achieve a price monopoly, several companies must work together.

The only thing that makes them sad is that the markets of Japan, South Korea and Baodao will be far away from them. These regions will definitely give priority to purchasing the iron ore from the Xinma Iron Ore Development Company.

In this regard, they could only sigh helplessly. All the means they could use before were almost exhausted. Unfortunately, they still could not stop the construction of supporting facilities of Xinma Iron Ore Development Company, which was destined to lose a large number of orders.

But what makes them happy is that the huge market in mainland China has gradually gained strength. Since 1980, the import of iron ore has increased every year. Although the current total import volume is still relatively low, several major mining groups

It is believed that as the reform and opening up in mainland China continues to advance, the demand for iron ore will increase in the future. As long as they firmly grasp this large customer, their business will not suffer a big blow.

As for the Xinma Iron Ore Development Company, the iron ore developed here will mainly supply the Korean and Japanese markets as well as the Baodao market. Even if there is excess, the Western Australia Steel Group also needs it, and the remaining output will not occupy much of the market.

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Moreover, he believes that the shareholders behind the Xinma Iron Ore Development Company will never only care about their immediate interests. They also understand the principle of slow water and long-term development. Trying to develop iron ore is not good for the development of all parties. They believe that the Xinma Iron Ore Development Company will follow the plan.

carried out mining.

Parsont said aloud: "Mr. Li, the price naturally needs to be discussed together by several of us. It can only be set after we all agree on the price. Naturally, you also have the right to set the transaction price.

This price is set to safeguard the common interests of all of us, and I hope you will not be emotional. We are all company executives and shareholders of the company, and we need to be responsible for the interests of the company and ourselves."

Rio Tinto is afraid that Xinma Iron Ore Development Company and even Xingyuan Group will not abandon them and go it alone, which will cause big trouble.

At present, the major iron ore importing countries are Japan, Germany, the United States, and South Korea. Now their major iron ore groups set prices with steel companies in several countries every year, and they are also communicating in this regard.

, the price will be announced in January, and once confirmed, it will be the target price.

Several parties later discussed the specific details. After nearly two hours, they finally reached an agreement to achieve an alliance on price and jointly safeguard the price of iron ore and their own interests.

After the meeting, Li Guangyu specially discussed matters regarding the Malandu Iron Ore Development Company with Sumitomo Qiying, Iwasaki Toshihide, Zheng Zhouyong and others.

This group will implement internal prices for steel companies owned by several shareholders to reduce costs for all parties.

The original intention of establishing this company was to reduce the costs of iron ore for all parties involved. Now it has implemented a price alliance. If there is no internal coordination, there will be some problems with the original plan.

You must know that the largest customer of Nippon Ma Iron Ore Development Company is Nippon Steel Corporation. If the internal price is not realized, the Japanese consortium will not get much benefit at all. This will seriously violate the agreement signed when the company was established.

After discussions between several parties, the steel company that is a shareholder of several parties purchased the iron ore from Xinma Iron Ore Development Company at a price that is 10% lower than the specified price to reduce the cost of purchasing raw materials for these parties.

As for how to operate in this regard, Li Guangyu believes that finance will do a good job. They only need to finalize a rough plan. Even if Rio Tinto, BHP Billiton and Brazil's Vale know that there are problems, they will not be able to find any trouble.
Chapter completed!