Material Empire

"Xiao Qin, don't worry, you have set up such a good stage, we will sing well in this play." Wang Hongsheng said meaningfully.

"Director Wang said so, so I feel relieved." Qin Haidao, "I'm also worried that if I control the foreign trade of rare earths on my own, the planning committee will be unhappy."

Wang Hongsheng said with a smile, "How can you handle rare earths? This is a special request made by Mr. Ji to the central government. Even if you cause any trouble, no one will dare to argue with you."

Qin Hai also smiled: "It is precisely because of the entrustment of Mr. Ji that I am trembling for fear of making mistakes. Now it seems that the effect is not bad. The rare earth offices in several southern provinces initially regarded me as an enemy, but now They have turned enemies into friends.”

"You always have the ability to turn decay into magic." Wang Hongsheng praised, and after finishing speaking, he suppressed his smile and said solemnly: "Xiao Qin, if you don't come to me this time, I'm planning to call you here too. There is something important that I need to discuss with you."

"What's the matter?" Seeing Wang Hongsheng's seriousness, Qin Hai didn't dare to joke anymore, so he sat up straight and asked seriously.

Wang Hongsheng said: "Do you remember, when I was in Anhe last year, I told you that the state was planning to abolish the unified purchase and sales of production materials."

"Remember." Qin Hai said, "Why, is it about to start now?"

"Yes." Wang Hongsheng said, "Since the South's speech, the country has clarified the reform direction of the market economy, and the pace of reform is going to be bigger. The unified purchase and marketing of production materials is the biggest obstacle for our country to move towards a market economy. The central government requires We will complete the reform of the production and sales system of means of production in one year, and completely liberalize most of the unified purchase and sales of commodities."

Qin Hai nodded and said, "It's about this time too. Fortunately, Director Wang has prepared for the rainy day and has already made preparations. Now tell me what I need to do."

Wang Hongsheng said: "The State Planning Commission manages more than a dozen major means of production, and we plan to adopt a strategy of gradually liberalizing. The first batch of liberalization includes steel, cement and flat glass. Among them, the steel industry needs your Daqin Group That's enough cooperation."

Under China's traditional system, the means of production are under the unified management of the state. Whether it is production, sales or prices, they are all brought into the management category of the planning department without any autonomy. At the beginning of the reform and opening up, in order to meet the needs of the unplanned production sector for the means of production, the state adopted a policy called "dual-track system", that is, the products produced by the means of production sector were divided into two parts, one part was uniformly allocated by the national plan, and Implement the national plan price; the other part allows production enterprises to sell independently, and set their own prices according to market supply and demand.

Under the dual-track system, there is a huge gap between planned and unplanned prices of production materials. Taking ordinary steel as an example, when the planned price is 1,500 yuan per ton, the unplanned price can be as high as 5,000 yuan. Due to such a price difference, the production department is eager to expand the proportion of unplanned products, while the national planning department insists on maintaining the proportion of planned products. The game between the two is very intense.

The reason why the country wants to maintain the planned price is that it is worried that the rising price of production materials will bring cost pressure to downstream industries, which will lead to a sharp rise in the price of final products. However, with the gradual liberalization of prices for other products, it is already extremely unfair for manufacturers to maintain planned prices. A ton of steel produced by a steel factory can only be sold for 1,500 yuan. However, downstream enterprises can earn several thousand yuan in profits by using these steel products. As a result, the prices of consumer goods in the market have not been controlled, but the steel mills have repeatedly encountered operational difficulties due to lack of profits.

The State Planning Commission decided to abolish the unified purchase and marketing this time, hoping to truly return the production autonomy to the production enterprises, so that they can obtain profits from the market. Only by allowing the means of production enterprises to obtain profits can these enterprises be guaranteed to have the ability to expand reproduction, so as to finally solve the "persistent" problem of shortage of means of production.

During this process, what the Planning Commission is most uncertain about is the extent to which the prices of production materials will rise after the cancellation of the unified purchase and marketing of production materials. If prices rise too quickly, cost pressures are passed downstream and could cause severe inflation across the country.

When he participated in the founding ceremony of Daqin Group last year, Wang Hongsheng mentioned this concern to Qin Hai, and Qin Hai suggested to him to establish a national reserve of means of production so that when the price of means of production rises too fast, Stabilize prices by releasing reserves. Qin Hai also promised Wang Hongsheng that Daqin Group could help the country in steel reserves. Now, what Wang Hongsheng needs Qin Hai to do is to fulfill this promise.

"Director Wang, don't worry, we are ready." Qin Hai said, "Our iron and steel plant in Anhe Cenzhou is undergoing expansion, and an annual production capacity of 4 million tons has been added. We are on the coast of Haidong Province The newly-built Daqin Haidong Iron and Steel Works will be put into production in the near future. The first phase of the project will have a production capacity of 5 million tons. The second phase of the project is expected to be completed next year. By then, an additional 5 million tons of production capacity will be added, which is enough to meet the domestic market.”

The expansion of Cenzhou Iron and Steel Plant and the establishment of a new iron and steel plant in Haidong Province are all things determined in the development plan of Daqin Group. Qin Hai knows that China is about to enter a period of rapid economic growth, especially in real estate development and road traffic construction, which will see continuous prosperity for more than 20 years. During this period, China's annual steel consumption will rise from 60 million tons to 600 million tons, equivalent to more than 50% of the world's total annual steel production.

If you want to say which industry is the most profitable in the past 20 years at the turn of the century, steel can definitely be ranked in the top three. Qin Hai, who has this foresight, naturally wants to take the lead in the layout and occupy as much share as possible in this industry. The cutting-edge materials he produced sound beautiful, but they are far inferior to steel in terms of profitability. Roughly calculated, based on 2,000 yuan per ton of steel, 10 million tons of production capacity means an output value of 20 billion yuan, not to mention that after entering the new century, steel companies with 50 million tons of production capacity can be found everywhere.

Using the excuse of sharing the pressure for the State Planning Commission, Daqin Group increased its investment in the steel industry. At the iron and steel plant located in Haidong Province, Qin Hai was worried that approval, environmental impact assessment, land use and other issues would be very troublesome. As a result, with the support of Wang Hongsheng, all difficulties were easily solved, and the first phase of the project was completed in only one year. , will be put into production soon. This kind of construction speed can be regarded as breaking the record.

Wang Hongsheng didn't know about Qin Hai's plans. He only thought that Qin Hai was expanding out of a public mind, to share the worries of the planning committee at all costs. Hearing that the production capacity of the two steel plants has been formed, he was overjoyed and said:

"Great! With the support of your 9 million tons of production capacity, the steel market will not be able to cause any big waves. You should hurry up and make arrangements so that the steel plants on both sides can run to full capacity. Cancel the policy of unified purchase and sales of steel, and the next It will be released in July, and by then, I believe there will definitely be a round of large-scale price fluctuations."

Qin Haidao: "Director Wang, I want to confirm the level at which the planning committee expects to control the price of steel products. I have to have a bottom line in my heart so as to determine our sales price."

Wang Hongsheng thought for a while and said: "The current price of 6.5mm wire rod is 1,805 yuan per ton, and we hope that the increase rate will not exceed 50%, that is, the highest price will reach about 2,700 yuan; the price of round steel, structural steel, cold-rolled plate and other steel products , and basically refer to this range, that is, the price increase will not exceed 50%. We have done a survey and found that according to this price, the profit of the steel plant can be guaranteed, and the downstream industries still have enough ability to absorb the price increase pressure."

Qin Hai made some calculations in his mind, based on the production costs of several steel factories under the Daqin Group, such pricing is basically reasonable, not too high, and can guarantee normal profits for the company. He said: "I understand, this price is completely acceptable to us. I will return to Anhe in two days and arrange this matter myself."

"Okay, then please." Wang Hongsheng nodded and said, "Oh, every time I have to ask you to solve problems for the country, I feel embarrassed."

Qin Hai said with a smile: "Director Wang is serious. No country can have a home. The country's economic order is stable, which is also very important for the operation of our company. We should share some pressure on the country as much as we can. .”

Wang Hongsheng said with emotion: "If all enterprises can think like your Daqin Group, then our country's affairs will be easier to handle. Unfortunately, some people and some enterprises are not only unable to share the country's worries, but are always thinking about taking advantage of the fire. According to I learned through some secret channels that there are several domestic trading companies that have raised a large sum of money and are planning to make a name for themselves when the country adjusts the unified purchase and sales policy of production materials."

"Really?" Qin Hai smiled faintly, "What are they going to do? Are they hoarding? I really want to see who has such a great ability to make waves in this market."

"Don't take it lightly." Wang Hongsheng said, "There are some people with relatively strong backgrounds who can obtain loans from banks. In addition, they themselves have accumulated some funds in the past few years. It is estimated that the total amount of funds they can mobilize , can reach more than 10 billion, and may even be more. If such a large sum of money wants to make waves, it still has some power."

Qin Hai said disdainfully: "Soldiers come to block, water comes to soil. If they really dare to make a name for themselves in the steel market, I will let go and play with them and see who can have the last laugh. They can mobilize 10 to 20 billion funds , I can prepare 30 to 40 billion supplies to see if they can eat it."

Wang Hongsheng said: "It's not that the matter has reached this level. I just want to remind you. Our planning committee is also aware of the situation of these people. When necessary, we will take some administrative measures to make them restrain themselves. The reform of the purchase and sales system of production materials is a major issue related to the national economy and the people's livelihood, and we will not let some small things make trouble."

When you read this chapter, it should be when the Spring Festival Gala starts, right? Orange on the other side of the strait wishes all book friends a happy New Year's Eve and a prosperous new year