Chapter 146 Iron ore

"The price of iron ore has increased again." Fan Wubing flipped through today's newspaper and said with some annoyance.

"Is this related to you as a price increase in iron ore?" Feng Ping, who was helping Fan Wubing make breakfast, asked in surprise.

Because we were going to help Feng Mao with the most thorough treatment today, Fan Wubing came to the hospital very early and did not have breakfast. Feng Ping volunteered to get them food, but the conditions in the hospital naturally could not be compared with those at home, that is, they just had to do it roughly.

The price increase of iron ore is of course related to Fan Wubing.

To build Panshi Airport, tens of thousands of tons of steel, Fan Wubing now plans to technically transform the iron plant in Shuixi County to produce a large amount of steel, but there is not much high-quality iron ore near Panshi, so it must rely on imports.

If imports are considered, the main choices are Vale, BHP and Rio Tinto.

His first choice is naturally the world's largest iron ore producer and exporter, the Vale Company of Brazil. Brazil has extremely rich iron ore resources, accounting for about 6.5% of the world's total reserves, making it the world's largest iron ore producer. Brazil's Vale Company is the world's largest iron ore producer and the largest mining company on the American continent. It is known as the crown gem of Brazil and the engine of the Amazon region. The company was established in 1942. In addition to operating iron ore sand, it also operates manganese ore sand, aluminum ore, gold ore and other mineral products, as well as pulp, port, railway and energy.

Vale iron ore production accounts for 80% of Brazil's total output. Its iron ore resources are concentrated in the Iron Quadrico and Bala State in northern Brazil. It has Tinbopebe iron ore, Capanima iron ore, and its iron ore reserves are retained about 4 billion tons.

BHP and Rio Tinto are mainly focused on Australia. From the perspective of operational difficulty, it is easier to cooperate with Vale. The backend boss of BHP and Rio Tinto is British, and these guys are too conservative and difficult to deal with.

When dealing with these guys, domestic people are useless, so Fan Wubing is doing it because he comes from overseas companies, and it is nothing more than the destination of the shipment in mainland China.

Now the international iron ore price has risen by about 15%, which is also a huge loss for Fan Wubing. Therefore, he naturally felt a little unhappy when he saw this news.

Since the reform and opening up, China's economy has maintained a high growth rate and steel output has grown rapidly. However, the domestic mine production potential is limited, the iron ore grade is low, and the mining cost is very high. Ore production can no longer meet the needs of steel production growth. Therefore, foreign trade imports have increased rapidly. In recent years, the average annual growth rate of imported iron ore has been greater than the increase in steel production.

The iron ore imported through foreign trade in ports is about 40 million tons. Iron ore has become the largest cargo in China's foreign trade bulk cargo import and export, accounting for about 10% of the global ore sea transportation volume, and occupies an important position in global iron ore transportation.

However, since domestic iron ore imports are done by companies, it is a bit chaotic. Domestic steel companies have not formed a consortium to negotiate pricing power with international iron ore giants. Therefore, they have never taken the initiative in price and can only passively accept the prices set by others.

The northern region is an important steel production base in China. Here, there are many steel enterprises, scattered layouts and a comparable scale. The ore required by each steel mill is based on surrounding mines. Imported ore is mainly used for distribution of ores or to make up for the shortage of own mines, and the import volume is mostly around one million tons.

There are many steel enterprises along the Yangtze River, including Baosteel, Shanggang, Meigang, Magang, Wuhan Iron and other local steel enterprises. The steel production accounts for about 30% of the country. The iron ore resources in the region are very scarce. It is the region with the lowest level of self-produced ore guarantee in the country. Therefore, it is also the region with the largest amount of foreign trade imported ore. The region's foreign trade imported iron ore accounts for more than half of the country.

Due to the characteristics of most steel enterprises in the construction along the river and the differences in the conditions of river and sea channel, most of the iron ore required by steel mills along the Yangtze River are transferred to Ningbo Beilun Port.

In the early 1980s, in order to cooperate with the construction of Shanghai Baosteel, Ningbo Port Beilun Port District built the first specialized iron ore terminal of 100,000 tons and supporting transport facilities in my country. During this period, China's imported ore was not large, only a few million tons. After the 1990s, with the rapid development of China's steel industry, foreign trade imports of iron ore continued to increase. Due to the lack of large-scale docks, many ports used bulk cargo berths of 30,000 tonnes to collect ore. A large number of imported foreign trade mines could only use ships below 50,000 tons to directly reach the port, which was particularly common in the northern regions. Not only was the dock loading and unloading efficiency low, but the transportation cost was also high, causing huge economic losses to the hinterland steel mills.

Thinking about the miserable situation of domestic steel companies being forced to survive and die because of iron ore many years later, Fan Wubing felt that he should do something now. At least the Japanese have not yet launched a large-scale stake in Australia and Brazilian iron ore, and the privatization of Brazil's iron ore industry has not yet been launched on a large scale. If you can intervene in these three major iron ore production and export companies and control a certain amount of equity, it will certainly be beneficial to your future development, and it will also be of assistance to other domestic steel companies.

However, if you really want to acquire super-large companies like Rio Tinto, BHP Billiton and Vale, the funds involved will inevitably be very large. Based on the current situation, it is estimated that acquiring any of these companies will require tens of billions of dollars to support them.

Moreover, this involves some more complex political factors, and no one is willing to hand over the country's largest mineral enterprise to foreigners to take control unless it is forced.

Fan Wubing thought about it and felt that controlling Vale was easier, while controlling old companies like Rio Tinto and BHP Billiton would be much more difficult, and it depends on opportunities. If you operate from the capital market or you can obtain less than 30% of the equity, you can count your words.

However, this matter cannot be done in one or two days, so Fan Wubing considered it. Now, by breaking down a large amount of funds into pieces, taking advantage of the downturn in the international stock market, first penetrate the capital market where the three companies are located. Once the opportunity is ripe, then launch a large-scale attack to strive to achieve the goal of more than 30% of the holdings of these three companies at the same time.

Thinking of this, Fan Wubing's mind was no longer in the hospital. He planned to spend 30 billion US dollars to absorb the stocks of these three companies as much as possible. The best goal is to control one of them and participate in two of them. If you do it too much, it may backfire. After all, there is an anti-monopoly regulation, which is not so easy to deal with.

"Are you still thinking about something?" Feng Ping shook her fingers in front of Fan Wubing and asked in confusion.

All along, what Fan Wubing showed in front of Feng Ping and Chen Jingchu was the heartless look. Feng Ping had never seen him consider something here so seriously. Suddenly, everyone felt a little uncomfortable when they saw Fan Wubing silent.

Feng Ping put a bowl of mushroom and cheese soup he had prepared and handed it to Fan Wubing, and then made him a piece of pie.

While drinking soup and thinking about his own affairs, Fan Wubing did not feel Chen Jingchu and Fan Tianlan walked in.

Chen Jingchu walked to Fan Wubing with a spring breeze and said to him, "Wubing, all the people outside my house disappeared overnight. It's so strange."

After being harassed by this group of people for more than a week, there was no freedom to move, and the family members were deeply hurt. Chen Jingchu was so disgusted with these annoying guys. After these people suddenly disappeared, Chen Jingchu naturally breathed a sigh of relief, but when he looked back, he felt a little strange. After all, this matter seemed abnormal.

There are not many people who know about the conflict at the gate of the Panshi Municipal Government, and the final propaganda caliber is a joint exercise. Therefore, no one knows what the root of this matter is, so ordinary people naturally have no way to know it.

Chen Jingchu didn't know that this matter was caused by himself, but he thought that it must have something to do with Fan Wubing.

After hearing Chen Jingchu's words, Fan Wubing smiled slightly and thought to himself that the water was deep.

Because of this incident, many cases of Chen Nian were involved. In addition, after being furious by Fan Wubing, the personnel and affairs of the entire military region were greatly affected. Now the senior military officials know that Fan Wubing is an unaffected person. It is best not to provoke him if he has nothing to do. Therefore, the figures such as the art troupe who were originally squatting at the door of Chen Jingchu's house suddenly scattered and went back to their respective places.
Chapter completed!