Material Empire

Chapter 503 We Don't Have Foreign Exchange

"This... is not impossible."

Qin Hai sold out enough, and began to show his fangs.

"Chairman Qin, please tell me." Changyou Yongsi heaved a sigh of relief, as long as the other party is sure to offer a price, it will be easy, which proves that there is still room for negotiation. What he was most worried about was that Qin Hai, out of the motive of killing Chunshan Company, refused to compromise. Then Chunshan Company could only solve the problem through negotiations between the Japanese government and the Chinese government. This is the most troublesome way.

Qin Haidao: "As a partner, especially the patent of dysprosium-terbium ferroalloy is still transferred by us to Chunshan Company, we are obliged to ensure that Chunshan Company obtains sufficient supply of dysprosium oxide and terbium oxide. This is the attitude of our Daqin Group. Mr. Hirano and Mr. Changtomo can rest assured."

"Thank you Chairman Qin, thank you Daqin Group." Sadao Hirano and Eiji Changtomo hurriedly bowed.

"But..." Qin Hai bit these two words very hard, "The Chinese government's policy of protecting rare earth resources is very firm. The situation that the rare earth price was not as good as that of Chinese cabbage happened a while ago, the Chinese government must not allow it to happen again. In addition to the consideration of environmental protection methods, the price of rare earths will inevitably rise, please understand this point."

"How much does it go up?" Changyou Yongsi asked.

"The guiding price proposed by the State Rare Earth Office is no less than 300 US dollars per kilogram for dysprosium oxide, and 450 US dollars per kilogram for terbium oxide." Su Yabo replied from the side. This was something Qin Hai had explained to him in advance. It's time to say it.

"Is this price...is it too high?" Changyou Yongji's face turned pale, "Only 8 months ago, dysprosium oxide was only 17 US dollars per kilogram, how could it suddenly rise to 300 US dollars? Reasonable."

"There is no need to mention the price of US$17 per kilogram. This price is completely the price of selling soil, which is extremely unreasonable." Qin Hai said lightly.

"Yes, 17 US dollars per kilogram is indeed a bit low." Changyou Yongsi said following Qin Hai's words, "We think that the current price of 100 US dollars per kilogram in the international market is already very high. If When it goes up to $300, that’s a total asking price.”

Qin Haidao: "Mr. Changyou, the international market price you mentioned is actually priceless. At present, the amount of dysprosium oxide that can be traded in the entire international market is no more than 10 tons, and the price rise is inevitable. You should know that rare earth resources are very scarce, especially rare earth elements such as dysprosium, terbium, gadolinium, and europium. I believe that the prices of oxides of these elements will rise further in the future, especially when people discover these elements After more uses."

"This..." Changyou Yongsi was speechless, he knew that Qin Hai's statement was correct, and the price of resource products could not be overestimated. He thinks that dysprosium oxide at US$300 per kilogram is too expensive, just because China has been selling rare earth products at a low price before, which has formed people's expectations of low prices. Once the Chinese realize the preciousness of rare earths and learn to use their monopoly power, the price of dysprosium oxide will rise to 300 US dollars per kilogram, which is not outrageous.

In fact, some Japanese economic experts predict that dysprosium oxide will rise to more than 500 US dollars per kilogram, and there is room for further price increases in the future. Inside Chunshan Company, there is a psychological expectation for this price, but Changyou Yongsi will not disclose this in front of Qin Hai.

On the issue of price, the two parties quarreled again. Finally, Qin Hai reluctantly agreed to temporarily reduce the price of dysprosium oxide to 250 US dollars per kilogram, and that of terbium oxide to 350 US dollars. Dysprosium and 50 tons of terbium oxide will cost nearly 70 million U.S. dollars, which is dozens of times more than purchasing the same amount of products in the past. Nagatomo Eiji felt like he was bleeding.

"I need to ask the company for instructions before I can confirm the price. After all, the price gap with our expected price is too big." Changyou Yongsi finally said to Qin Hai, and he also knew in his heart that if he couldn't find a good way to force If people lower the price, Chunshan Company can only accept this price in the end.

"For this price, we also need to ask the National Rare Earth Office for instructions. Maybe the Rare Earth Office will think that this price is lower than their guide price, so they will not approve this transaction." Qin Hai also said hypocritically.

Sadao Hirano said in a gloomy tone: "In general, we still hope that Chairman Qin can fight for us again and strive for a lower price. According to this price, there is almost no market competition for the dysprosium-terbium ferroalloy we produce. In the end, we had no choice but to give up on this very promising new product."

"I don't think your company will give up this product." Qin Hai said disapprovingly, "Dysprosium-terbium ferroalloy can be widely used in the production of computer disks, automobile motors and mobile phones, and these products have a very broad market. Yes, the profit margin is also very high. Manufacturers will not reject this material because of the slight increase in the price of dysprosium-terbium-iron permanent magnets. If my expectations are not bad, your company will purchase dysprosium oxide and oxide at the current price. Terbium, the profit margin of dysprosium-terbium-iron alloy produced in the future will not be lower than 30%, which is much higher than the profit margin of NdFeB.”

"Your calculation is based on the most optimistic considerations. In fact, we still have many unforeseen costs." Sadao Hirano admitted. They are all people in the same industry, and things like production costs and profit margins really can't be hidden from anyone. He could even guess that the prices of dysprosium oxide and terbium oxide that Qin Hai quoted to them were tailor-made based on the calculation of Chunshan Company's production costs. This is really a shrewd opponent.

"Chairman Qin, according to the price we just negotiated, can your company guarantee to provide enough dysprosium oxide and terbium oxide to our company?" Changyou Yongsi avoided the topic of cost and profit, and began to implement the details of the contract.

"Not enough." Qin Hai shook his head and replied.

"It's not enough, why?" Changyou Yongsi was taken aback for a moment, the money has been earned by you, what other monsters do you have?

Qin Hai sighed and said: "As I said just now, the development of rare earths is controlled by national policies. To be honest, our company is indeed capable of increasing the supply of rare earth products, but the premise is that it must be authorized by the state. If the state If you don’t let go of the rare earth business, no matter how high the price you pay, we won’t dare to supply it.”

"How could this happen?" Changyou Yongsi became impatient, and after talking for a long time, didn't he go back again? He doesn't believe in the statement of state control. The Japanese have done a solid job in intelligence work. He has already found out that the Rare Earth Office has jurisdiction over rare earth production, but Qin Hai also has a very strong voice in the Rare Earth Office. Big, there is no problem of not being authorized at all. Qin Hai pretended to be a gesture, and it was clear that there were still some conditions to be raised.

"Chairman Qin, there is a saying in China that one thing does not bother two masters. Since we are partners, if there is any problem, please ask Chairman Qin to help us solve it together. The National Rare Earth Office you just mentioned, How should we approach them, how can we persuade them to agree to more rare earth quotas, can Chairman Qin give us some pointers?" Changyou Yongsi said.

"This matter is somewhat difficult, after all, the country's policy is very clear." Qin Hai pretended to be thinking, and said slowly.

Changyou Yongsi and Pingye Sadao both knew that he had more to say, so they simply stopped interrupting and waited for Qin Hai to continue.

Sure enough, after half a minute of pause, Qin Hai raised his eyebrows and said, "I remembered, now there is an opportunity. If your company can seize it, I think the Rare Earth Office will let it go."

"What chance?" Changyou Yongsi asked.

"I don't know if Spring Mountain has any business relationship with Nippon Steel, Kawasaki Steel, Sumitomo Metal, and Kobe Steel?" Qin Hai asked.

"Nippon Steel..." Changyou Yongsi was a little puzzled. The four companies that Qin Hai mentioned are all the most famous steel companies in Japan, and their scale is so large that Chunshan Company can't hold a candle to them. When Qin Hai talked about these companies in a polite manner, Changyou Yongsi was really confused.

"It's like this..." Qin Haidao, "China is undergoing the reform of the steel supply and marketing system. At present, China's domestic steel supply has encountered some temporary difficulties, and there is an urgent need to import a batch of steel to meet the demand. If Chunshan Company can solve this problem Provide some help to the Chinese government, and I think the Chinese government will reciprocate and open up its rare earth policy.”

Changyou Yongsi still didn't understand that the reform of China's steel supply and marketing system had nothing to do with Chunshan Company, so Changyou Yongsi didn't know about it. In his opinion, China needs to import steel, which is a very simple matter, just take out foreign exchange to purchase in the international market, what is the difficulty?

Steel is no better than rare earths. There is no quota for this thing, and the supply exceeds demand in general, so there is no problem of not being able to buy it. Japan is the country with the highest steel output in the world, and the steel supply is even more abundant. Why can't the Chinese government go directly to Japan to buy steel, but ask Chunshan Company to provide some help?

"The thing is like this." Qin Haidao, "The Chinese government needs to import at least 5 million tons of steel to balance the domestic market, but...we don't have enough foreign exchange."

"Uh..." Changyou Yongsi was speechless again, and after a long time of fuss, the boat was bent here. He asked hesitantly: "Chairman Qin, how do you hope Chunshan Company can help you?"

"I'm just putting forward an idea." Qin Hai emphasized, "The Chinese government is currently facing difficulties in the issue of steel products, and Japan is a country with abundant steel products. If Spring Mountain can persuade these steel companies to use seller's credit Sell ​​no less than 5 million tons of steel to the Chinese government to help the Chinese government solve its urgent needs, and I think the follow-up cooperation between our two parties will become easier."

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