Material Empire

Japanese companies are still very organized in their work. When a technology is still in the laboratory, there are special personnel to analyze the market prospect of this technology, make predictions on future sales volume, price, etc., and make decisions based on this. Identify issues in raw material procurement, production capacity building, etc.

The data mentioned by Sadao Hirano is the result calculated by the research department, and this result can be used as the basis for Miyagawa to make a decision.

"How much is our current inventory of dysprosium oxide and terbium oxide?" Miyagawa turned to Nagatomo Eiji again and asked.

"Dysprosium oxide is less than 60 tons, and terbium oxide is only 5 tons." Nagatomo Eiji said disheartened.

"There is such a big gap?" Miyagawa was lost in thought.

Regarding rare earths, there has always been a view that rare earths are not "rare" and are not strategic resources that require special protection. The reason for this school of view is that the annual demand for rare earths in the world is only a few hundred thousand tons, while China's proven reserves of rare earths are as high as 30 million tons. Even if all the rare earths in the world are supplied by China, it is enough to mine for 200 years. above. If we consider the rare earth resources of other countries, then the rare earths will be enough for another 1,000 years.

One of the biggest flaws of this theory is that it does not take into account that with the development of human science and technology, the demand for rare earths will gradually increase. Once a certain use of rare earths is discovered, it is entirely possible that the demand will increase by 10 times or 100 times. At that time, can you still say that these rare earths are enough for 1,000 years?

The most typical example is the demand for neodymium oxide. Before the invention of NdFeB, the demand for NdO was very small, only one or two hundred tons a year. However, after the emergence of NdFeB, the annual demand for NdO suddenly increased to more than 2,000 tons, an increase of more than 10 times compared with the past.

The same is true for dysprosium and terbium, which originally existed only as additives and were in small demand. In NdFeB permanent magnet materials, in order to enhance its coercive force, generally about 2% of dysprosium is added, which is the main purpose of dysprosium oxide in the production of Chunshan Company. Because of the small amount used, the storage capacity of Spring Mountain Company is also small, as long as it can guarantee the production needs of two or three years, it is enough.

However, when the dysprosium-terbium-iron alloy appeared, the situation was quite different. Dysprosium and terbium have changed from additives to main raw materials, and the demand has naturally increased by 10 times. Originally, only 60 tons of dysprosium oxide and 5 tons of terbium oxide were stored, but now it seems that the gap is too big.

"Changtomo-kun, what do the experts you have consulted think the price of dysprosium oxide can rise to in the next three years?" Miyagawa asked Changtomo Eiji again to prove that it is he who must make a major decision that affects the company's fate. It is necessary to fully understand the situation.

Changtomo Yongji said with a bitter face: "They believe that according to the current situation, the price of dysprosium oxide may rise to 500 US dollars per kilogram, or 500,000 US dollars per ton in the short term. The most important thing is that they do not know The dysprosium-terbium-iron alloy technology we have mastered, if we know..."

Changyou Yongsi didn't continue, because the words that followed were really shocking. Experts' estimation of the price trend is based on the existing supply and demand of dysprosium oxide, and once dysprosium-terbium ferroalloy enters the practical field, the demand for dysprosium oxide will increase significantly, and the supply and demand situation will become even worse. By then, the $500-per-kilo estimate will be a foolishly optimistic view.

Thinking about the rise in international oil prices, you can understand how terrifying it would be if the price of a mineral resource increased.

"I will submit an application to the board of directors for a loan of 100 million US dollars to establish a reserve of 600 tons of dysprosium oxide and 100 tons of terbium oxide. This will be a strategic reserve for our company." Miyagawa said in a heavy tone , said to everyone.

Storing raw materials sounds easy and wise, but it's actually very cheating. Raw materials worth 100 million dollars cannot produce any value in the warehouse. On the contrary, they have to pay high interest and storage costs, which will become a heavy burden for the enterprise. However, it is impossible not to establish reserves. Once there is a disturbance in the market, the company can only be slaughtered.

Whether or not to build reserves, and how much to build, is a very complicated issue, involving market and technology forecasts, and even taking into account the integrity of the opponent. However, judging from what can be seen so far, the prices of dysprosium oxide and terbium oxide will continue to rise no matter what. If something that costs $50 a kilogram now rises to $500 or even $5,000 in a few years, then Now the reserves that have been built with huge sums of money will be able to play a role.

All the managers in the room knew how important this matter was to Chunshan Company, and it was really unpleasant to feel that the lifeblood was in their hands. Sadao Hirano even had an idea that if he hadn't obtained the sample of dysprosium-terbium-iron alloy from Qin Hai at that time, maybe all these things would not have happened. However, he also knew that this was just an illusion. The invention of the dysprosium-terbium-iron alloy permanent magnet was a huge threat to Chunshan Company anyway. Whether Chunshan Company accepts it or not, it is equally embarrassing.

"About the work of expanding the reserve, shall we start now?" Changyou Yongsi asked.

"Start now." Miyagawa said with certainty. For such a big decision, he must of course get the approval of the board of directors, but the purchase of 600 tons of dysprosium oxide is not something that can be done overnight. At present, the supply of dysprosium oxide in the entire international market is only about 200 tons. To build such a large reserve, in addition to sweeping out the dysprosium oxide in the market, it is also necessary to put pressure on the Chinese government to increase the amount of dysprosium oxide in China. Dysprosium production and sales. As for other rare earth suppliers in the world, let them sleep and sleep, they do not have such production capacity.

"I understand." Changyou Yongji said, "Mr. Miyagawa, I need to go to China in person. If necessary, I may have to meet officials from the China Planning Commission or Mr. Qin Hai. I need the company to give me Sufficient authorization. In addition, to make the Chinese willing to increase the supply of dysprosium oxide, I am afraid that the Japanese government needs to communicate with the Chinese government through official channels.”

"I will arrange for people to do government affairs." Miyagawa said, "You and Heino will study the issue of dysprosium-terbium-ferroalloy again, and determine an accurate purchase quantity and the highest price we can accept. Then report to me."

"Hi!" Nagatomo Eiji and Heino Sadao stood up at the same time and responded in unison.

When Chunshan Company was clouded with gloom, Qin Hai was sitting in Wang Hongsheng's office of the State Planning Commission, talking and laughing happily, introducing the results of his trip to the south.

"The export of heavy rare earths has completely stopped and will not resume within two months. The average price of heavy rare earth oxides in the international market has increased by 3 times, and the highest has increased by 10 times. This time, cabbage can finally be sold. The price of the meat is gone." Qin Hai proudly said to Wang Hongsheng.

"Has the production of rare earths not been interrupted?" Wang Hongsheng asked. He knew about Qin Hai's rectification of rare earths in advance, and he has been paying close attention to them for a while. He is quite satisfied with Qin Hai's actions in the southern provinces.

Qin Haidao: "No, after the rectification, the production order is better, and we have invested a batch of large-scale mining equipment, and the production capacity has been increased by more than three times. However, all rare earth products are currently stored in warehouses, and we have to wait until the price is right. Then throw it out."

Wang Hongsheng said: "This kind of trick is only dared to be done by a rich guy like you. I heard that you Daqin Group bought these rare earth products out of your own pocket. Didn't you spend a lot of money?"

Qin Hai shook his head, and said arrogantly: "It didn't cost much, maybe tens of millions. We can't let those small mine owners who invested money to build a factory not see the benefits, right?"

"Are you not worried that the price of rare earths will not rise in the future, and all your reserves will be in your hands?" Wang Hongsheng deliberately questioned.

Qin Haidao: "First of all, it is impossible for the price of rare earths to rise. No one can figure out my production capacity now, so there is generally an expectation of price increases. The psychology of buying up but not down also exists for international buyers. Secondly, even if foreign buyers have the ability to refuse to buy, I am not afraid, our Daqin Group has the ability to digest these stocks."

Chunshan Company is entangled in the issue of how much rare earth to store, but here in Qin Hai, there is no pressure at all. This is the right to speak of the resource owner.

If it wasn't for worrying about the pressure of international trade, Qin Hai really wouldn't need to make money by selling rare earths. A group of scientists from the Anhe Institute of Materials are now working at full speed on the research of rare earth deep processing technology, no matter how much rare earth there is, he can digest it by himself. However, just as you cannot eat alone when mining, you cannot eat alone when using mineral products. He has to reserve some rare earth raw materials for foreign high-tech enterprises, otherwise he will attract criticism.

"When are you going to wait until you ship?" Wang Hongsheng said, "You have blocked the supply in the international market, and some foreign companies have already protested. This is not in line with international trade rules."

Qin Hai smiled and said: "Our country has not yet joined the tariff and trade agreement. What can international trade rules do to me? What's more, I didn't say that I can't ship, but I just said that adjustments are being made now and the mine is temporarily closed. People in the United States Timpass Rare Earth Mine is already planning to close forever, isn’t there no one complaining about it?”

Wang Hongsheng said: "That's what I said, but our country is going to participate in international trade after all, and some things can't be done too badly. To tell you the truth, the Ministry of Foreign Trade has approached us several times these days, asking us to give you Apply a little pressure and release some rare earth products. They are directly facing overseas businessmen, and the pressure is not small."

Qin Haidao: "Director Wang, I came to you for this matter. I can tell you that I plan to resume supply to the international market in two months, but the supply is only half of the original. My actual The production capacity is three times that of the original, that is to say, I have two and a half times the supply in my hand, which can be used to bargain with foreign businessmen. Planning Commission, do you plan to use this weapon?"

"Use this weapon?" Wang Hongsheng's eyes lit up, and he understood what Qin Hai was referring to.

Using mine rectification as an excuse to reduce the supply in the international market is a statement that no one can find fault with, and it can even be completely believed by others. But the international market needs rare earths after all, so various manufacturers will come to the Chinese government for help, and may even communicate through the government. This kind of time is when the country can take the opportunity to blackmail. If you agree to my conditions, you can give you some rare earths. If you don’t agree to my conditions, then you will be given some official rhetoric to make you come back disappointed. Everything depends on you. Can I be satisfied.

As for what to blackmail foreign countries, Wang Hongsheng can think of too much: preferential trade conditions, the export of certain Chinese products, the removal of restrictions on high-tech products... These are all things that the Chinese government has tried its best to win from abroad. Instead of begging others with courtesy and affection, it is better to use rare earth as a condition to force the other party to take the initiative to give benefits. Active and passive, the difference between the two is too much.

To achieve this, a key point is that there must be an organization that can completely control the production and sales of rare earths. Now, Qin Hai has achieved this.