Behind the scenes technology company

Chapter 119 Raw Materials and Minerals

The industry layout that Su Qian has been responsible for has finally reflected its value at this critical point in time.Although the behind-the-scenes technology is rich and powerful, it does not mean that it is necessary to be taken advantage of in this wave of rising raw material markets.

The price increase in the raw material market is abnormal, and it exceeds the fluctuation of the entire raw material price increase.No matter how you look at it, someone is behind the scenes.In fact, regarding the rise of metal raw materials, especially after the emergence of superconducting technology, the market has ushered in a rising trend.

The procurement of raw materials has always been an important part of the financial expenditure of behind-the-scenes technology, and the budget is also increasing year by year. However, the raw material market not only has a spot trading market, but also a bulk commodity futures trading market.For a long time, behind-the-scenes technology has maintained a good cooperative relationship with domestic raw material suppliers, and is also constantly expanding international supply channels to purchase raw materials.

The impact of the financial market has spread to the spot market, or in other words, the recovery of the commodity market has revitalized the entire raw material industry.

The concept of bulk commodity itself is very broad, but it is generally believed that it refers to material commodities that can enter the circulation field, but are not retail links, have commodity attributes and are used for industrial and agricultural production and consumption in large quantities.In the financial investment market, bulk commodities refer to commodities that are homogeneous, tradable, and widely used as basic industrial raw materials, such as crude oil, non-ferrous metals, steel, agricultural products, iron ore, coal, etc.Including 3 categories, namely energy commodities, basic raw materials and agricultural by-products.

The main procurement target of behind-the-scenes technology is basic raw materials, non-ferrous metals, steel, and iron ore are all materials that are in great demand by behind-the-scenes technologies.Although China has a vast territory and rich resources, it is also a country with extremely high import demand, and the market for bulk commodities was established later than Western countries.

With the continuous expansion of production and consumption in China, the importance of the commodity trading market has become more and more prominent.The main reasons are because of the large price fluctuations, high supply and demand, easy grading and standardization, and easy storage and transportation.In the context of global economic integration, the establishment and improvement of commodity exchanges has become a sharp weapon in the hands of every country in the face of competition.

Before 2000, mergers and acquisitions of global exchanges mainly occurred domestically. After 2000, this trend began to spread across national borders and expand to a global scale.Looking back at the development history of international commodity exchanges, it can be found that the core competitiveness of exchanges is mainly the right to speak in pricing and pricing mechanisms.

Years of development have allowed the international commodity exchange to get rid of the profit-making model of commissions and start branding operations. At the same time, the basic pricing center has been established.The London Metal Exchange controls the price trend of non-ferrous metals in the world, and the Chicago Board of Trade controls the pricing power of global grain commodities represented by soybeans.

At the same time, in the wave of mergers and acquisitions of exchanges with a global perspective, international bulk commodities continue to integrate.Integration represents an increase in efficiency and a more reasonable allocation of resources, and synergies and economies of scale have also begun to appear, which means that transaction costs are reduced.However, the reduction in cost does not mean that Huaxia will be able to purchase cheaper raw materials.

The competition in the international market has reached the integration stage, and the domestic commodity market in China has just become chaotic. It was not until the State Council supervised and rectified the commodity trading market in 2011 that the commodity trading in China ushered in the formalization.The competitiveness facing the international market is far inferior.

Time waits for no one. Under the impact of the new Internet wave, the market prices of bulk commodities have become more transparent. At the same time, the industrial systems of various countries in the world are gradually improving. The market impact on basic raw materials is still very large, especially metal raw materials. A downward trend all the way.

The price of raw materials for commodities has fallen. On the one hand, due to the continuous increase in production capacity, it has gradually reached a state of relative surplus. On the other hand, with transparency and openness, the profits of middlemen have been compressed, and the market for bulk commodities has also declined. It became half-dead, and the same thing happened with the falling crude oil.With the rise of new energy, the crude oil market has also ended its soaring trend since 2008, which included many games between countries.

In the past ten years, neither 5G technology nor the development of carbon fiber materials nor the discovery of more alloys have fundamentally affected the half-dead commodity trading market until the emergence of the behind-the-scenes technology construction army type 1.

No matter what kind of alloy the robot itself uses, non-ferrous metals, iron ore, and steel are the basic materials. This is the consensus of the world, and it is also the most urgent need of behind-the-scenes technology.The price increase in the raw material market has become a matter of course. Compared with the spot market, the financial market has always been more sensitive.

We have to pay attention to the very representative iron ore market among bulk commodities. Huaxia's bulk commodity trading market has only gradually become formalized since 2011. However, since the reform and opening up, Huaxia has entered a stage of rapid development, and the corresponding The demand for iron ore has also increased significantly.

Iron ore is the second-largest commodity in global trade after crude oil, and China is the world's largest buyer of iron ore. From 1980 to 2007, iron ore was priced using long-term agreement pricing.

The long-term agreement between the supply and demand side of iron ore is "quantitative but not priced". The price is negotiated once a year. After the "first price" is determined, other mining companies and steel mills will follow up with confirmation, and the quantity of supply or purchase will be determined in the long-term agreement. The quantity, the term generally reaches 5 to 10 years.This is the "long-term agreement" pricing mechanism in the estimated iron ore procurement.

With the further rise of Huaxia, the rapid development of the economy, and the gradual acceleration of the industrialization process, the global demand for iron ore has increased significantly driven by Huaxia, and the trade environment foundation of the long-term agreement pricing model has begun to shake.Mine suppliers are no longer satisfied with the stability brought by the "long-term agreement", but want to further use their monopoly position to change the pricing mechanism so as to obtain higher profits.

Suppliers are eyeing the dividends of Huaxia's development, and it is the goal of the mines to make Huaxia accept a higher price in the negotiation. Since 2003, Huaxia surpassed Fuso to become the world's largest importer of iron ore, and Baosteel Group began to lead the negotiations.At the same time, the price of iron ore began to soar.

The reason why the price rises despite the dominant negotiation is composed of internal reasons and external reasons.Whether it is Fuso or Goryeo, the early compromises with suppliers have made China's quotations extremely passive. Moreover, the two countries themselves have also purchased a lot of iron ore mines abroad. The increase in prices is beneficial to both countries.The internal reason is that different steel companies are not united enough and signed the agreement in advance, which completely disrupted the pace of negotiations.

数据显示，1991年至2003年，铁矿石价格累计下跌近20%。而2003年至2010年，国际铁矿石价格累计上涨337.5%。其中2007年到2008年铁矿石的涨幅达到了65%。随着2008年金融危机的到来，全球铁矿石在此时出现了阶段性的供大于求，现货价格在2008年下半年开始出现急速下跌。

A new round of iron ore negotiations took place at this time. At the end of 2008, Huaxia proposed that the price of iron ore should return to the level of 2007, and the price should be reduced by at least 40%. In 2009, Huaxia Iron and Steel Association was authorized by the Ministry of Commerce to replace Baosteel. The group entered into negotiations, but was rejected by the international mine supplier.Huaxia and the international mining company launched a bargain, but also reached a deadlock.

The results are often not so easy to be accepted by people, and the 40% price reduction insistence was not realized in the end. When the international mining company put the card of Huaxia negotiation on the table, Huaxia had to end this round of negotiations with a 33% reduction .

The trump card was exposed, and financial data such as the turnover days of iron ore raw material inventory, the average cost of imported ore, the gross profit per ton of steel, and the unit consumption of pig iron were mastered by the opponent. The result of the negotiation can be said to be doomed to failure.The appearance of the inner ghost exposed the chaos in the Huaxia iron ore market back then.

The Huaxia iron ore demand market is divided into the contracted ore market and the spot market. In order to regulate and better manage the iron ore import market and stabilize iron ore prices, the qualification standards for imported iron ore companies have been continuously improved. Companies are constantly shrinking.Domestic small and medium-sized steel mills that cannot obtain the qualifications for importing iron ore cannot obtain the share of long-term cooperative mines in major global mines. As a result, the market share of spot mines is increasing. The factory also participated in the reselling of iron ore to earn the difference.

The big steel mills are intriguing, even telling the secrets of internal business negotiations to international mining companies in order to be able to buy imported ore at a lower price. International mining companies sign agreements.

International mining companies are not satisfied with the stable profit growth of the long-term agreement. In 2010, the price of iron ore continued to rise. The three major mining companies changed the pricing of iron ore from "long-term agreement to short-term agreement", and the "long-term agreement" mechanism came to an end. Its fate, along with it, was the debut of the Platts index.

Platts' valuations are based primarily on the highest bid bid and lowest ask offer for the day, regardless of whether actual transactions occur.At the same time, the sample source of the Platts Index is based on a small sample to determine a large sample. The outstanding problem is that the party with the highest bid often determines the price of the entire industry, which is obviously beneficial to the mine side, and the premium part is borne by domestic steel companies.

The users of Changxie Mine are the most injured in the entire industry. Over time, the chaotic iron ore market has gradually transformed the relationship between supply and demand. Overcapacity has also appeared in the iron ore market, and the "ratio of bulk commodities" has also appeared in the iron ore market. The path of "miserable" also began to usher in a bear market after the domestic commodity trading market was gradually formalized.

International mining companies have benefited from China's rapid development to varying degrees. While China's demand for iron ore has declined, international mining companies have increased production instead of reducing production. In the case of oversupply, the supply An increase leads to a decrease in price.

After all, if the world of robots comes, then the demand for steel and the price of minerals will inevitably rise again and again.The large-scale rise in the futures market is speculating on future expectations. The crazy rise in the futures market has forced the average price in the spot market to rise gradually, and an uncontrollable trend has gradually emerged.

In the commodity futures market and the iron ore market, the long-sleeping king has been awakened.A new round of long-short game started a new fight in the iron ore market.With the rise of iron ore, the metal plate of commodities has been affected one after another, and it has also begun to follow iron ore to strengthen.

The raw material price war started without warning, and the technology behind the scenes was not unprepared.From the plan of all-field layout, Behind the Scenes Technology is transforming into a comprehensive large-scale group, and its core business also requires support from various industries, especially Behind the Scenes Technology Finance, Behind the Scenes Technology Heavy Industry, and Behind the Scenes Technology, which are the first echelons in Su Qian's plan. Mining Company.

The role of the behind-the-scenes technology financial company is not only to conduct research and investment in the industry, to help the behind-the-scenes technology to complete the acquisition, but also to provide consumers with consumer credit for their own products.In a more sense, in addition to providing consumers with consumer credit for their own products and making installment purchases, behind-the-scenes technology finance is essentially an internal financial company and does not provide more external services.

The establishment of the behind-the-scenes technology finance company is to expand the territory of the behind-the-scenes technology and promote its own products. In the international financial market, the behind-the-scenes technology does not directly participate, but participates in the competition for the spot market.

The abnormally fluctuating bubble in the financial market will return value one day. Excessive prices will not only hurt the technology company behind the scenes. The war in the financial market is a war of time, a zero-sum game. Once someone is out, then it will Divided up by other survivors.

The behind-the-scenes technology has set its sights on global minerals early on.Both the behind-the-scenes technology heavy industry and the behind-the-scenes technology mining industry are acquired and transformed by the behind-the-scenes technology financial company to fill the rising raw material demand of the behind-the-scenes technology.With the great help of the machinery research and development department behind the scenes, the technology heavy industry has continuously optimized and built mineral mining systems and equipment. At the same time, after the acquisition, the mining company has been silently carrying out its own mining work.

While most of the existing mineral resources are owned, the technology behind the scenes still requires a high price to obtain the corresponding mineral resources. This is not just about purchasing iron ore resources around the world, but covers a variety of metal resources.Buying minerals is not an easy task. The mining power of high-quality minerals is very expensive, but if you buy low-quality minerals, you will lose money.

The establishment of the mining company was just over a year after the establishment of finance and heavy industry. When looking for mineral deposits around the world, the behind-the-scenes technology can be said to be at the end, and the front is not only controlled by many big bosses With most of the mineral resources in the world, at the same time, as mineral resources are constantly being hollowed out today, there are also extremely high requirements for the identification of mineral reserves with behind-the-scenes technology.

The non-participation of the financial market and the difficulty in purchasing minerals. In this wave of rising prices of raw materials, the response of the behind-the-scenes technology is to announce the temporary suspension of raw material purchases. The company’s raw material reserves can only last for two months, but whether it is the Chamber of Commerce All the bosses in the industry, including Wei Lai himself, firmly believe that the bubble of metal raw materials can only last a very short time.

In their view, such promotion by "people with a heart" can only make a fortune in the financial market and run away. If it takes too long, it will be of no benefit to anyone. This is just a disgusting method.However, for "intelligent people", such market fluctuations can not only make a fortune, but also slow down the development of Huaxia and behind-the-scenes technology in a certain sense.

(End of this chapter)