Chapter 376 Fighting the Landlord
When you usually hear the four words "billionaire", your first reaction is Bill Gates, the richest man in the past. If there is anyone else, many people may also answer, such as Morgan, Rockefeller and even the illusory Rothschild. If you know something, then the Queen of England can be considered. But many people are not clear about it. There are big misunderstandings, such as Morgan and Rockefeller, which do not represent someone, but a consortium, such as the famous Cleveland Consortium in the United States, Chicago Consortium, etc., which are listed as the top ten consortiums.
In addition, the richest people in the world are not all in the United States or Europe. There are also some billionaires rarely known to domestic people. Of course, this includes the Arab royal family who get rich after digging for oil. If someone has carefully studied the global rich list, it is even more surprising to find that India, which is often called a joke in the eyes of Chinese people, has no less billionaires than other countries and regions. If calculated based on personal wealth, it is even ranked very front.
Just like India's richest man Mukesh Ambani, this famous rich man in India, has no less assets than Bill Gates, the former richest man. If it weren't for Zhou Liwen's sudden appearance, he would have even surpassed Bill Gates with a personal wealth of US$6.2 billion in two years, thus becoming the world's number one person.
In addition to Mukesh Ambani, there is another person that cannot be ignored, that is, the steel giant Lakshmi Mittal, who masters the world's largest steel company, ArcelorMittal Steel. His personal wealth has exceeded US$3 billion and has firmly entered the top ten in the global rich list.
In addition, there are the Indian rich men such as Anil Ambani, Azim Premki, Shahi Ruya and Ravi Ruya, Kusa Pal Singh, Savetri Jindalai, and other Indian wealthy people. Their personal assets are also calculated at 10 billion US dollars, which is not an exaggeration to say that wealth can rival a country.
In addition to these billionaires with huge wealth, India, like the United States, also has many family-style consortiums. These consortiums may not have much personal wealth in a single person, and they are still a daunting behemoth in terms of the entire consortium.
Zhou Liwen had business dealings with India before, of course that was the time of his previous life. Although these ordinary three brothers liked to procrastinate in their work, were not responsible, and were petty about prices, the upper-level elites in India were completely different. They had no personal abilities or judgment in the business world as much as those of European and American counterparts, and they were even particularly decisive in some aspects, which was one of the reasons why they were able to become rich.
When Li Haifeng learned from Li Haifeng that someone had intervened in India, Zhou Liwen immediately thought of the Indian rich people who occupy an important position in the world's rich list. Although the national relations between India and China are not very good, India, which has a relatively backward foundation, has developed well in private business in recent years in the field of foreign trade.
What's more, India's iron ore is also an important source of supply for domestic steel mills and steel companies. For a period of time, India's ore supply exceeded Australia and became the channel for the largest proportion of raw materials. The cooperation between the two sides in this regard came earlier than that of Australia's ore procurement. If you carefully calculate it, you can find that in fact, starting from the late 1980s, China and India cooperated with ore supply and procurement.
At present, the soaring steel prices in China have forced the so-called macro-control, resulting in steel mills and steel companies canceling unplanned production, which has affected the purchase orders for ore imports. As the Indian side that supplies ore, it is impossible for them to see this change in the Chinese market, and this incident has also attracted their attention.
The three brothers are not fools, and the elites are ultimately elites. While losing a large number of ore purchase orders, they quickly judged like Zhou Liwen that China's inverted steel prices could not last long. The weakness of China's domestic steel market is just an illusion. Judging from China's development speed, the demand for steel is very large. When the current market inventory is consumed to a certain extent, the government's macro-control will collapse, and the prices of finished steel products, including raw materials, will soar further than before.
In view of this reason, the three brothers and Zhou Liwen also saw business opportunities in it, but because of their habitual drag, the move slowed down a little. This was why Li Haifeng met an Indian businessman who also came to China to buy finished steel to hoard goods halfway through the second delivery.
Compared with Li Haifeng who quietly entered the village to shoot, the Indians had no such concern. They were rich and powerful and unscrupulous in China and used the channels of iron ore cooperation to hoard large quantities of finished steel products. In this case, if Zhou Liwen and Li Haifeng continued their previous strategies, they would not only bid for each other to raise prices, but they would even attract the attention of relevant domestic departments.
There is no need to worry about Zhou Liwen's identity, but Li Haifeng and Zhou Liwen are different. Even if he is holding a Xiangjiang passport, he is still a Chinese. It will be very troublesome if he is targeted by the superiors. In addition, Zhou Liwen doesn't want to make the mutton goat without eating it, unless he decides to give up the huge domestic market, otherwise he will still have to maintain friendship on the surface.
As for India, doing such hoarding is a one-time transaction. This is not an investment but a speculation at all. Even if the relevant departments are unhappy, they cannot hurt a single hair. Anyway, their commercial cooperation with China exists as raw material suppliers. China wants to purchase iron ore. In addition to Australia and Brazil ore exporting abroad, the demand for India is very large. Now the international market price of iron ore has soared and has shifted from the buyer's market to the seller's market. In this case, unless the relevant departments in China have broken their heads, they can only hold their noses and smile and please the three brothers who hold the raw material supply.
As expected, the development of things was almost the same as Zhou Liwen expected. In just over a week, the domestic steel market, which has been stagnant, has risen. Not only steel mills, but also steel companies, or some private enterprises engaged in steel trade, they were shocked to find that Indians bought out all the inventory on the 70s overnight with almost endless banknotes.
The shortage of supply in the steel market has led to the rise in steel prices under macro-control. Of course, this does not include the pricing of steel mills and steel companies. Price increases mainly occur in the finished product market, that is, in the finished product circulation channel. In more than ten days, there is a 2% difference between the market's guide price and the bargaining price, and this difference is still rising with the tight supply.
Just like the domino effect, the force of a finger is slightly pushed, causing a chain reaction in the entire market. At this time, even idiots can see that the so-called macro-control has been completely failed. The consumption of inventory, the insufficient production of steel mills and steel companies, and the three changes in bargaining prices have caused panic in the demanding companies and factories, just like investors rushing in to buy in the stock market, trying to grab the raw materials they need to produce before the price of finished steel products rises again.
The changes in the market have also caused steel mills and steel companies to react. As market bargaining continues to rise, what if there is a national guide price? No operator will foolishly watch as if he has money but does not make money, learn from Lei Feng to do good things. Steel companies have already sold all the inventory and even planned to be produced in the past, and as for other steel mills and steel companies that have stocks in their hands, of course, they quickly stopped sales, and acted as if they were reluctant to sell.
There are policies from the top and countermeasures from the bottom. The Chinese are very smart. As long as they react, they can burst out endless energy. Of course, some people say that since the domestic steel market cannot get finished products, will you not import them? If people who say this are heard by insiders, they will definitely be laughed at. Because of a key issue, due to macro-control, domestic steel prices and international steel prices have long been inverted. According to the current upward trend of international steel prices, it is better to use relationships to bargain at home in China. In addition, everyone has seen that when macro-control is a bad move, domestic steel prices will definitely rise further. In terms of terminology, this is equivalent to a "compensation for increase", and the increase in the range must at least rise to a price similar to that of the international market.
Looking at the price list of steel markets in various regions in China that had just been sent, Li Haifeng's hands were trembling slightly. He never expected that in just over a month, in less than two months, the total investment of US$4260,000 in less than two months, his profit has exceeded US$200 million based on the book calculation, and this amount is still increasing over time. You should know that the best net profit for his group is only this number in the year, not to mention the current situation of the country's cancellation and reduction of product tax refunds, and the factors of rising raw materials.
"Mr. Li, someone has come to us, and I don't know where to get the news. We have a batch of steel in our hands. The other party proposed to buy goods at the current market bargaining price of 10 plus a premium. Do you think we will temporarily ship a batch of goods?" Lin Sen was also very happy. This "gambling" made him excited. He knew what the profit now meant, but as Li Haifeng's assistant, he reminded him to be safe.
Li Haifeng turned his eyes away from the paper in his hand, looked at Lin Sen and frowned and asked, "What's going on? Are we not very careful when we buy goods? How could anyone come to us and ask for goods?"
"It's like this. Our group has a large demand for finished steel products, so during the operation, I bought a batch of goods in the name of the group. But don't worry, this is just a small batch, and the ones we found are not outsiders. It is a steel trading company we have cooperated with before. In my opinion, he also knew this latter kind of tentative inquiry."
Li Haifeng breathed a sigh of relief. If this is the case, there would be no problem. His group is engaged in industrial industries, and it is normal to reserve more sources of goods in the face of the market price sluggish. As for the bulk acquisition of US$4260,000 he invested, he had been very careful to operate it in the name of many vests, and in addition, the nearly 200,000 tons of finished steel products were stored scattered by him.
After thinking about it, Li Haifeng shook his head and said, "You can't move now. Don't say that the premium is 10, even if it is 2, you can't sell it. Tell them that these goods are needed by our group's production. In addition, the macro-control has not been officially cancelled yet. Who dares to shoot the first shot of this kind of gun?"
"Okay, I'll reply to them like this." Lin Sen nodded, and when he was about to get up and say goodbye, Li Haifeng stopped him.
"This way, you delete it. If there are traders who have better cooperation with us before, you will reply to them, telling them that we are industrial enterprises and do not do this kind of trade, and our business scope does not include these. But for everyone to be long-term cooperative customers and for better dealings in the future, our group can appropriately allocate a batch of goods to them. Of course, this is allocated, and it is borrowed. They will return it to us in kind when we need it."
Lin Sen was stunned when he saw Li Haifeng with a smile on his lips and instantly reacted, laughing and stretched out his thumb at him: "Dr. Li, your move is so great
Not only did they block their mouths, but they also did not offend others. OK, I'll do it like that."
Li Haifeng looked at Lin Sen leaving with a smile, feeling extremely comfortable. He picked up the market quotation just now and couldn't help but hum a song. Although he only accounts for 3 of the current $200 million profit, this is also a benefit of 660,000 US dollars. If it is RMB, it is equivalent to RMB 4.86 million. In just a few days, he borrowed Zhou Liwen's 600 million RMB, and not to mention that when the price rises again, it will be a net income.
Lin Sen sent the traders he found according to Li Haifeng's instructions. Although he was very polite and sincere, the traders were all merchants who sold at low prices to make profits. They would not agree to the operation method like Li Haifeng killed them. According to the current bargaining increase, if they operated like this, they would suffer losses in the future. In the end, they had no choice but to shake their heads and reject Lin Sen's "good intention".
In this way, Li Haifeng did not offend others and calmed down the matter. He also took this opportunity to make the raw material inventory sufficient. In addition, the price of foreign orders rose in the future, and the company's profits naturally increased a lot. The previous cash flow shortage was no longer a problem.
But the situation that followed made Li Haifeng, including Lin Sen, shocked again. Zhou Liwen instigated Li Haifeng's early move and later the large-scale procurement of Indian merchants, the domestic steel market situation changed greatly compared with the original history. In the original history, this macro-control would last for about ten months, and it was not until Indian merchants sucked up market inventory to almost the same extent.
But now it is very different. When Indians take action, they find that someone is ahead of them. In order to seize this opportunity, their actions and investment are greater than in history, which has caused a stronger reaction. One month after the bargaining, the country's macro-control has become a joke, and it is useless for you to regulate it at this time. If price restrictions are no longer opened, the country's infrastructure, production and real estate industries will all come to a halt. This year's GDP will probably not even be able to maintain the level of the previous year, let alone the completion indicators.
This responsibility is unbearable for anyone. Even if the important national departments issued macro-control, anyone will be unlucky if this board is hit.
After another half a month of hard support, the macro-control that was in name only finally came to an end, and it quietly came to an end more than two months earlier than in the original history. When the macro-control was officially over, the steel market price screen, which had already been undercurrent, emitted powerful energy, and its market price instantly ran like a wild horse.
10…¨15…20…20…-0…. In just three weeks, the market price changed almost every day, surpassing the price before macro-control in one breath, and even continued to surge. Affected by the prices of the Chinese steel market, major international steel companies also issued notices of adjusting prices, rising by 3% on the basis of the original price to 45%. At the same time, mining companies also jointly issued notices of adjusting prices for iron ore and fine powder, and scrap furnace materials traders also followed closely and adjusted the supply prices simultaneously.
In essence, this farce not only did not suppress the domestic steel market price, but also contributed to the fuel and further surged the market price. This may be the result that some people who formulated the policy did not expect, but in any case, the guys who ended up suffering the final loss.
These are not something that Zhou Liwen can deal with, nor are they considered by Li Haifeng and others. At present, they have long been immersed in the joy of harvest. The end of macro-control of the steel market and the opening of prices have made them suddenly make their mouths.
At present, steel mills and steel companies are speeding up to re-engineer unplanned production in an attempt to make a fortune in this completely unravelled price market. But you must know that from purchasing ore, producing and then entering the market, there must be a long turnover time. Even if steel mills and steel companies use the ore and furnace materials they currently have to invest in advance and increase raw material procurement to ensure later production, the adjustment of production plans also takes time to proceed, which is as short as three months and as long as half a year. During this period, the entire market is still a seller's market, with more wolves and less meat, and no market.
The Indian businessman, who also made a lot of money, smiled and signed a new ore supply contract with the domestic steel mills and the steel company, and gradually released the stocked steel products in the Chinese market to make huge profits. At this time, Li Haifeng was not idle either. He followed the Indians to pieces and released goods a little bit. Although he had tried his best to restrain the speed of release to avoid the market impact of 200,000 tons of steel, under the hungry market demand, not to mention these goods, even the Indians who brought more goods to him did not make a wave. Millions of tons of steel entered the vast sea like a drop of water, and disappeared without a trace.
Chapter completed!