Chapter 588 Pressure
Jiang Feng was thinking while talking about his own views. He did not have the habit of squeezing his hands in front of others. In the past few days, through his in-depth understanding of the domestic steel industry, his knowledge of this industry has become increasingly richer, and it is not much different from some of the situations he has mastered, but it is just even more shocking.
"The iron smelting capacity is over 100 million tons and the steel smelting capacity exceeds 50 million tons. In this case, the market should have been the best way to eliminate these backward production capacity. So why can these enterprises survive? In addition to large state-owned enterprises that can obtain support from various national policies, what about small and medium-sized enterprises?"
Jiang Feng seemed to be guiding everyone here to think about this issue, but in fact, this issue does not require thinking.
"Actually, we all know that steel companies are largely a scale advantage. The larger the management level, the higher the management cost, the higher the technical content, and the more marketable the product, which determines that the company is vital. On the contrary, small enterprises have huge flaws in terms of scale, cost and technical content. In terms of management level, most of them are difficult to reach the level of large and medium-sized enterprises. So why can they survive?"
"On the one hand, the prevalence of local GDP ideology, local governments fully support the various policy subsidies, and on the other hand, enterprises sacrifice environmental protection to obtain living space. This environmental protection cost is not included in the production cost of enterprises in most places. The leaders of local governments do not understand this, nor do they not know this, but the assessment and promotion mechanism determines that it may harm the health of more people, and what does it have to do with me? My political achievements are beautiful and my data is glorious. I should go to the next session. As for the future, it will cause headaches for people in the future. I think this is the most critical."
"I'm a bit far from it, but what is facing us is still the problem of overcapacity. This is an important factor that leads to chaos in the domestic steel market. To be honest, I talked with Premier Wen three years ago. At that time, I said that there are two ways to solve the dilemma of my country in iron ore. One is to invest in iron ore abroad, and the other is to integrate the domestic steel industry." Jiang Feng looked at Premier Wen opposite and continued. "In recent years, although the country has taken some measures in this regard, in my opinion, it still lacks strength. Perhaps, it is difficult for the government to deal with mining abroad, because due to the nature of our country, it can easily arouse the vigilance of other countries, which I understand more. However, in integrating the domestic steel industry, the country is still like a woman with a small foot, which makes me puzzled."
Seeing that the three people looked a little bad, Jiang Feng had no intention of stopping.
"Prime Minister Wen, Director Mo, Minister Hou, this is the case. A businessman like me shouldn't have talked too much. Even as a businessman engaged in iron ore trade, I really hope that iron ore can rise in price. That means I can make more money. However, for the sake of the country's interests, I have repeatedly given up my own interests, and in the past three years, I have withstood the huge pressure of the price increase of the three major iron ore giants, and maintained a more reasonable increase in iron ore prices." Jiang Feng said. In the past three years, iron and steel have been in line with the huge pressure of the price increase of the three major iron ore giants.
The increase in ore prices is indeed relatively stable. If Jiang Feng had not intervened, according to the established trajectory of history, the increase in iron ore prices in the past three years should be 18.62%, 71.5% and 19% respectively. In this time and space, the increase in iron ore prices in the past three years was 12%, 38% and 15% respectively in the past three years. In other words, Jiang Feng alone reduced the cumulative increase of iron ore prices by 142.09% to 77.7% in the past three years, which is equivalent to suppressing the increase by half.
The risks are very great, especially in 2005, several major iron ore giants initially proposed to raise the price by 100%. Under the strong interference of Jiang's Mining, the price was only increased by 38%, which almost made the three major iron ore giants turn against Jiang's.
Although Jiang did not significantly lower the price in the iron ore import negotiations in the past 2006, which eased the relationship between Jiang and the three major iron ore giants, Jiang Feng knew very well that if the country could not cooperate with Jiang, in the future, either Jiang could no longer withstand the pressure of price increase, causing the price of iron ore soar, or Jiang and the three major iron ore giants to completely turn against each other. These are not what Jiang Feng wanted to see.
"However, you should be very clear that after enduring the huge pressure in the past three years, it is difficult to achieve the surge in iron ore prices by Jiang's own efforts. Under such circumstances, it is only possible to increase the restructuring of the steel industry in China and optimize production capacity." Jiang Feng said.
The development history of the foreign steel industry is a history of mergers and acquisitions and integration in the world's steel industry. With the intensification of competition in the world's steel industry, in order to improve the market competitiveness of enterprises, the steel industry must expand the scale of enterprises through mergers and acquisitions. Most of the steel enterprises in some major steel producing countries in the world have gone through the merger and reorganization process.
Over the past 100 years, the global steel industry has mainly experienced four large-scale reorganizations and mergers, establishing the strong steel status of the United States, Japan and Europe, and there have been huge steel companies.
The first large-scale reorganization and merger wave occurred in the United States in the early 20th century, which created the world's number one steel mill - the American Steel Company.
The second time was the merger and reorganization of the new Nippon Railway in the 1970s, which made Japan a world steel power.
The third time was the cross-border merger of European steel mills in the 1990s. In 1997, the European steel industry reached its peak and had 6 of the world's top 10 steel mills. The merger of German Krupp and Thyssen Company established Thyssen. Krupp Group was not only the end of the third steel merger and acquisition restructuring activity, but also the beginning of a new round of mergers and acquisitions.
The fourth time is a merger and reorganization that has occurred worldwide since this century. France's Yukinor Group, Albed, Luxembourg, Belgium, and Esserella, Spain, officially merged into the world's largest steel company - Assel. In February 2002, Japan's Steel Pipe and Kawasaki Iron Manufacturing merged into JFE Holdings, becoming the first and third steel company in Japan. The parent company is Ispat International Group, which has grown rapidly in recent years. It adopts the method of acquiring and merger of existing steel companies to rapidly increase its steel production capacity. By the end of 2003, it became the second largest steel company in the world. In 2005, Mittal established Mittal Group through reorganization of Ispat and LNM and further acquiring International Steel Group, and became a giant steel company with a production capacity of more than 70 million tons.
From this we can see that the global mergers and reorganizations of steel enterprises will be carried out on a larger scale and become a development trend.
However, China's actions in this regard seem very slow and lack strength. Jiang Feng's description of a woman with a tiny feet is not an exaggeration.
Jiang Feng's last sentence seemed to reveal a murderous intent, which made the three domestic bigwigs tremble in their hearts. But they all knew very well that Jiang Feng's words were not false intimidation. Especially Premier Wen, he knew very well that Jiang Feng had been under great pressure in the negotiations on iron ore imports in the past few years.
However, it is not easy to integrate the steel industry in China. Even if he is the prime minister, it is difficult to understand the interests of the disputes involved.
...
The silver spoon that imitated the French aristocratic style was stirring up, and the coffee in front of him was steaming. Yang Shimin obviously dressed up deliberately today. Who wouldn't want to show his most beautiful side in front of him?
Before the other party arrived, Yang Shimin took out a small mirror from Kun's bag and looked carefully at the light makeup on his face. His eyebrows were like Chunshan, his bright eyes were favored, and his slightly raised cherry lips were carefully applied with Dior's charming pearl light series, which was illusioned with a proud look.
The slightly fluffy black hair was casually spread behind her head. Yang Shimin knew that Jiang Feng actually liked the refreshing image of her hair bun, but she felt that her dress was more lethal and enough to murder any male gaze, and Jiang Feng would never be an exception.
The snow-white pointed-collared tight shirt is wrapped in an orange V-neck sweater, and the figure is just right. The low-waisted thin wool trousers are like snowflakes, surrounded by a dark brown calf belt, and are such a beautiful and beautiful lady.
This outfit is all the clothes that Yang Shimin likes when she went on a business trip to Tokyo. She felt it suited her when she wore it on the model, so she bought it and the taste revealed on her body was no less than that of those professional models.
Yang Shimin was right. After Jiang Feng appeared in the coffee gallery, he never left after he looked at him. This made Yang Shimin quite proud and no one could resist his charm.
Jiang Feng was indeed shocked by Yang Shimin's outfit today. Yang Shimin's outfit was filled with a youthful and beautiful vitality. She didn't look like a woman of thirty-four or fifteen, but more like a mature girl of 27 or eight years old. The light lip gloss and blurry smoke-colored eyeshadow made the woman feel a sexy charm all over her body.
If she wanted to attract herself, Jiang Feng had to admit that she did it.
The window chosen by Yang Shimin is very good. A screen covers the slightly dark entrance. There are partitions on both sides, allowing you to enjoy the piano playing from the hall. Perhaps this place is going to create such an environment that makes people subconsciously want to sink, so they use this kind of winding paths to cover it.
Chapter completed!