The rise of nanometers

As news broke that Rio Tinto, BHP Billiton, and Vale had reached a stalemate in negotiations with Blue Star Mining, the capital market reacted extremely fiercely.

The three Rio Tinto companies with market capitalizations of hundreds of billions of dollars were shorted by short-seller capital. Currently, Rio Tinto has suffered the worst decline, with only a market value of 32.6 billion dollars remaining, and basically two-thirds of the market value has been evaporated.

BHP Billiton and Vale were not much better, with their market values ​​falling to 54.4 and 50.1 billion yuan respectively.

This tragic confrontation made the capital giants behind the three major international mining groups feel heartbroken and worried. Although they also hedged part of their losses through short selling, a major reshuffle in the international mining market is already foreseeable. It’s the future.

Dalian Ore Exchange.

Domestic steel, aluminum, non-ferrous metals, fertilizer and other companies have come to register trading accounts, bringing in large amounts of capital.

Due to the setup of the Dalian Ore Exchange, there are many differences from the international futures trading market.

For example, the use of leverage is not allowed here, and the holder of the trading account must have a corresponding factory.

For example, an account that purchases iron powder must have the business of producing related products, thus limiting the entry of capital.

After all, many capitals do not have factories that produce and process steel and aluminum products. If such accounts can enter the trading system of the ore exchange, it will only cause capital to coerce the market and make the prices of iron powder, aluminum powder and the like appear fictitious. high.

Speculators are never consumers. If a large number of speculators enter the ore market, once they inflate the price of ore powder and cannot find a factory to take over during the delivery period, the consequences will be very serious, and may even cause large-scale defaults in the market.

Therefore, the Dalian Exchange requires relevant processing industries for the admission review of trading seats. At the same time, it does not support the use of leverage. At most, only margin accounts can be used.

Huayuan Settlement has further blocked international capital, preventing other parties from entering on a large scale.

After all, converting foreign currency into Chinese dollars requires procedures and procedures.

Dalian Posco is one of the subsidiaries of Korea Posco. Park Young-myung, the general manager of Dalian Posco, is accompanying the company's president Cui Zhengyu to the Dalian Ore Exchange.

The 2009 Changsha Mining Agreement will soon become a thing of the past with the passing of December.

As a large steel company with an annual steel production of more than 30 million tons, Posco spends 6.6 billion yuan on iron ore procurement every year.

In the car, Park Rongming whispered: "Mr. President, after we use pure iron powder to smelt, the cost has dropped a lot, and the product quality has improved a lot."

After flipping through the relevant reports, Cui Zhengyu's face became more cautious: "Manager Park, what is your opinion?"

"We have no choice." Park Rongming replied helplessly.

There is indeed no choice. If they do not use pure iron powder, their products will be uncompetitive. Faced with the surge in output of Chinese steel companies, Posco can only choose pure iron powder.

“How’s our deal seat?”

Park Rongming hurriedly replied: "The Dalian Exchange has agreed to let us use the seats of the Dalian subsidiary, but there are restrictions."

"Tell me about it." Cui Zhengyu took off his glasses and rubbed his dry eyes.

"If the futures we purchase are used in factories within China, we are allowed to directly purchase pure iron powder. However, if they are used overseas, we are not allowed to purchase pure iron powder and can only purchase pig iron produced by steel companies."

Cui Zhengyu frowned and put on his glasses again: "Is it because of the value of pure iron powder?"

Park Rongming nodded and explained: "President, the pure iron powder produced by Blue Star Mining is truly pure iron, with a purity of more than 5 9s, and it is a nano-scale powder. It is suitable for powder metallurgy, smelting special steel, and high-quality steel. Performance bearing steel and the like have a very obvious bonus effect.”

Obviously Blue Star Mining is not a fool. To a certain extent, pure iron powder is a strategic raw material. Although it can be sold at a cabbage price domestically, it is impossible to export it.

Therefore, the Dalian Exchange has recently contacted steel plants such as Hegang Iron and Steel Co., Ltd. and Anshan Iron and Steel Co., Ltd. and asked them to specialize in producing some pig iron as a substitute for pure iron powder and as a raw material to be listed on the Dalian Exchange.

If foreign companies want to purchase, they can only purchase pig iron ingots, but not pure iron powder. Pure iron powder and the like are restricted materials that are strictly prohibited from export.

Cui Zhengyu gave up the idea of ​​purchasing pure iron powder. The top priority was to get cheap raw materials instead of worrying about pure iron powder and pig iron ingots.

"Where's New Japan Steel?"

Park Rongming was stunned and immediately reacted: "They are also looking for a way. They seem to be discussing with Baosteel, maybe they want to get a share of the import of pure iron powder."

New Nippon Steel, also known as Nippon Steel Corporation, Posco and Baosteel, to a certain extent, are still the sons of Nippon Steel.

Because these two companies were built with the assistance of Nippon Steel back then, and now these two companies have become Nippon Steel's main competitors. It can only be said that fate brings fate.

Magic City.

Baosteel Headquarters.

Yamada Kazuo looked at this with a complicated expression.

Chen Guangrong was on the side, and the two of them were discussing something.

Chen Guangrong spread his hands and said helplessly: "Mr. Yamada, there is nothing I can do about the export of pure iron powder. After all, neither the Steel Association nor Blue Star Mining agree to export, so there is nothing I can do."

"Chen Sang, can't our friendship be an exception? We don't need too much, we only need 5 million tons per year." Yamada Kazuo said very respectfully.

"Sorry, if it is a subsidiary of Nippon Steel in China, there is no problem in purchasing pure iron powder, but I really can't make the decision on exporting it overseas." Chen Guangrong said with regret.

In fact, Chen Guangrong was reluctant in his heart. Baosteel uses steel smelted from pure iron powder, and its overall performance has been greatly improved.

The performance improvement brought by pure iron powder is mainly because there are no impurities. The quality of the smelted steel is very stable and uniform. When blended with gold steel, it is not easily disturbed by impurities.

This is why Nippon Steel covets pure iron powder. The energy saving, environmental protection, cost reduction and performance improvement brought by pure iron powder are a fatal temptation for every steel company.

If it weren't for the close relationship between Baosteel and Nippon Steel, Chen Guangrong would not even want to meet Yamada Kazuo. After all, he has no right to decide on the pure iron powder trade, and Baosteel does not want its competitors to obtain pure iron powder.

This is also the reason why Cui Zhengyu of Posco gave up immediately after knowing the restrictions of Dalian Exchange.

Yamada Kazuo visited many old friends in China, but still could not obtain a pure iron powder export license. In the end, he had no choice but to give up and use subsidiaries in China to smelt the required steel.

With more than a dozen foreign companies including Nippon Steel and Posco purchasing pure iron powder and pig iron, the impact has been huge.

Rio Tinto, BHP Billiton, and Vale, which were already struggling to survive, were once again heavily shorted by short sellers.

What's more serious is that the long-term agreement negotiations in 2010 are basically unnecessary now.

Not only are Chinese steel companies not interested, but Japanese and Korean steel companies are also wavering.

Although foreign steel companies do not want the raw material market to be monopolized by Chinese companies, the current situation is stronger than others. If they do not choose Chinese raw materials, they will only be eliminated by the times.

Thank you all for your support, and I would like to thank the book friends "¤ Cang Yan♂鑑MIE", "Indomitable Man Zhihan", "Xianyujun 2233", "Stars in Spring and Autumn", and "Liu Bailiu" for their rewards (ω｀)