celestial system of the solar system

Chapter 243 Low Price Dumping
The trump card is very simple, that is, dumping at low prices regardless of cost.

It is different from the last state reserve copper incident.In the case of the State Reserve Copper incident, China has a large demand for copper, so it is not in the national interest for the State Reserve Bureau to sell a large amount of copper.But in terms of steel, Huaxia is a big exporter, so it is in the national interest to sell a large amount or even dump it at a loss.

After resorting to low-price dumping, the price in the international steel market dropped rapidly, even breaking through the lowest point of steel prices in the past three years.

Under such circumstances, some developed countries began to intervene with administrative means and resorted to anti-dumping means.

It is unknown whether those developed countries implemented anti-dumping to protect the domestic steel industry, or whether it was a decision made under the joint influence of international speculators.But objectively, steel prices in the international market have begun to pick up steadily.

The most critical reason for this is that Huaxia does not have pricing power.

Yes, the price of steel exported by Huaxia is indeed very low.But after anti-dumping duties are added, when those cheap steels appear in the international trading market, their prices are no longer cheap.The price of a certain commodity in the international market is determined not by the export price of China, but by the price of the commodity in the corresponding international trading market.

However, the relevant departments of Huaxia did not admit defeat.

For countries that have erected trade barriers, relevant departments have suspended sales offensives.However, for countries that have not yet established trade barriers, the relevant departments of Huaxia have intensified their efforts to reduce sales prices.The steel markets of most developing countries have fallen under the offensive of such low-price dumping.

The level of steel market prices in non-developed countries will not affect developed countries for the time being.But it's more than that.

The short position taken by the Huaxia trader also included high-grade special steel, which is one of the confidences that international speculators dare to sell.However, to the surprise and anger of developed countries, Huaxia not only aggressively attacked the crude steel market, but even launched a price war in the special steel market.

If the profit of crude steel is low, developed countries can bear it.Such high value-added special steel is about to be made into cabbage by Huaxia, which makes it unbearable for those countries.

Some special steels are unable to be produced in most countries because of the complex formula and manufacturing process.And the few countries that can manufacture special steel, some of them can only barely use it for their own use because of quality or output problems.

Therefore, only a very small number of countries can earn high profits in the high-end special steel market.In this high-end field, although the quantity is not large, the transaction volume is not small - as for the profit point of view, it is a hundred times that of crude steel.

However, since Huaxia aggressively entered the high-end special steel market, those countries began to retreat steadily.

After the special steel manufacturers in those countries discovered new competitors, they immediately took corresponding countermeasures.

Generally speaking, when industry leaders discover that followers have developed competitive products, they will use price cuts to block competitors.

Because new products always require high R & D costs.For the leader, the price reduction behavior is only to reduce the profit. For the chaser, it may mean that the research and development cost cannot be recovered, and thus a loss occurs.

However, what frightens the leaders in the high-grade special steel industry is that instead of adopting a passive follow-up strategy, Huaxia Steel Enterprises took the initiative to attack. , clearly demonstrated the determination to fight the price war to the end.

After several confrontations, the leaders in the high-grade special steel industry were convinced that the use of price cuts was completely ineffective.And if you continue to do this, the entire market will be ruined.

Helpless, the leaders had no choice but to raise their free cards one after another and watch Huaxia Steel Enterprises occupy more market share.

The only hope is that the output of Huaxia Steel Enterprises is limited, and there will be a crisis of out-of-stock soon; the second is that the high-grade special steel sold by Huaxia Steel Enterprises has quality problems.

Because the decline of high-grade special steel is relatively large, and high-grade special steel can be stored for a long time, there are buyers who just need it in the market and start to buy and stock up.And this kind of behavior has led to the phenomenon of enlarged transaction volume in the high-grade special steel market.

However, in response to the increase in demand, Huaxia Steel Enterprises did not hesitate to sell, completely acting like if you dare to buy, I will dare to sell.

On the other hand, after the leaders secretly checked the quality of the products sold by Huaxia Steel Enterprises, they were shocked to find that the quality of high-grade special steel sold by Huaxia Steel Enterprises was not inferior to the quality of the leaders' own products!

So this is the only possibility, at least in the short term, there is no hope.

While the leaders of high-grade special steel are in a state of desperation, the bosses of foreign crude steel production enterprises have been shrouded in despair.

The reason why the steel industry is regarded as a sunset industry is because crude steel itself has been made into cabbage.

In developed countries, there are very few iron and steel enterprises that rely solely on crude steel to survive and develop.Iron and steel enterprises in developed countries are generally capital-intensive and often rely on the profits of special steel to survive.As for crude steel, if there are no trade barriers or subsidies, it is basically a meager profit.

Several moderately developed countries and primary developed countries with a relatively large share of crude steel exports rely on transportation cost advantages, labor cost advantages or local iron ore cost advantages to compete, but their profits are not high.

Nowadays, Chinese steel companies have launched a price war in the crude steel market, immediately defeating some other traditional crude steel exporting countries. The price of crude steel, which was originally just a cabbage price, has been significantly reduced, and some steel companies have been defeated in a short period of time. cost price.

What makes the crude steel market even more desperate is that even though foreign steel companies have lowered the selling price of crude steel below the cost price to compete, Chinese steel companies have responded with even greater reductions, showing a desperate attitude.

In the crude steel market, many foreign steel enterprises smelled bankruptcy.In the high-grade special steel market, the original markets of foreign steel companies have also fallen.As a result, the entire steel industry was devastated.

Not long after the price war broke out, foreign governments that reacted quickly imposed anti-dumping duties on steel exports from Huaxia.As the price war becomes more and more fierce, more and more countries have introduced anti-dumping tax policies.

However, later on, these countries discovered that not only the foreign market had been completely lost, but even the domestic market was still under great impact.

Because there is a classification in international trade called entrepot trade.The steel exported by Huaxia is shipped to a third country, where it is processed through conversion, packaging, classification, selection, packing, etc., and then sold to the consumer country.

There are even goods that are shipped directly from Huaxia to the consumer country without passing through a third country. However, there is no trade relationship between Huaxia and the consumer country. Instead, the transit country trades with the producer country and the consumer country respectively.

This kind of transit trade is actually very difficult to eliminate.

(End of this chapter)