Rebirth in the 1980s Chapter 299 The Importance of the Steel Industry

Steel production was once regarded as the most important indicator of a country's strength. Among the world's major powers, which one is not at the forefront of steel production?

Nowadays, steel output is no longer the most intuitive data to measure a country's strength, and internationally, the steel industry has become a sunset industry.

The sunset industry does not mean that this industry is no longer profitable.

Still making money.

But how to say it!

It’s just that this industry has no room for improvement.

Today the market demand is one hundred tons, and tomorrow the market demand is basically the same amount.

Even if the market doesn't even have a hundred tons tomorrow, it might only be ninety tons.

The era of great demand for steel in developed countries has long passed, and most of what needs to be built has been built.

We are just tinkering with it now. The demand for steel is declining year by year. After reaching a certain level, it will maintain a fluctuating balance.

Developed countries no longer have much demand for steel and do not need to invest in infrastructure construction. However, the situation in China is different.

China is a backward country, its development has just begun, and its demand for steel is still extremely strong.

The golden age of steel companies has just begun!

Raising one billion?

Yuzhou Iron and Steel could be used as a pilot enterprise for joint-stock reform of steel companies, but Shuchuan went to the capital to apply.

The people in the capital are quite appreciative of the joint-stock reform that Shuchuan has carried out in recent years, and it seems that it has been quite successful.

As a western province, Shuchuan is on the pace and is larger than some eastern coastal provinces.

And now it seems that I am not just taking big steps, but also taking steady steps.

"Director Chen, if we raise one billion yuan, will the market be able to accept such a large amount of financing?"

Chen Huaiqing: "Steel is the foundation of all development, who would not accept it?"

There seems to be nothing wrong with what you say!

Chen Huaiqing didn't say anything yet, most of the billion in financing will be taken up by Motta Group and pension fund companies.

It's better not to talk about this matter in public.

Nowadays, there is a huge demand for steel in the market, and Yuzhou Iron and Steel obviously wants to expand its production scale.

Rubbing his forehead, China has not yet become the largest demander of iron ore.

But at this time, the import of iron ore from abroad had already begun.

For example, Shencheng Iron and Steel uses imported iron ore.

China does not lack iron ore, but it lacks high-grade iron ore.

Chen Huaiqing read a piece of information showing that our iron ore mining costs, excluding freight, are US$80, while the CIF price of Australian iron ore is only US$1,530!

Most of our iron ores are buried deep underground, making it difficult to mine them.

Moreover, there are mostly poor ores, and only 28% are rich ores.

In any case, Chen Huaiqing knew one thing very well. Raw materials kept rising. To put it bluntly, the supply could not keep up.

Then, purchasing raw materials from abroad is a very normal choice.

Their investment must accelerate their deployment in the field of raw materials.

Hua Guoguang imports iron ore every year. At its peak, it seems to have reached 12 trillion rb.

As for oil...

He is also much older.

Regarding resources, Chen Huaiqing felt that it would be beneficial to import more from abroad.

We cannot just think about saving the money we earn from foreigners, but we must use the money to buy things from them so that they feel that they have also made money.

The reason why the First Opium War broke out was, to put it bluntly, a trade dispute.

Exporting industrial products and buying raw materials, we all make money no matter what. And the money earned is turned into high-rise buildings, various infrastructures, social welfare and scientific research funds.

If money is just a bunch of numbers, it's meaningless no matter how much you have.

It has to be transformed into real property.

At this time, in the office of the general manager of Yuzhou Steel, two grown men looked at each other.

"Lao Wang, what does the exchange mean? At first, we wanted to raise 700 million yuan, but the exchange said it was a bit high and asked us to raise 500 million yuan. How can we ask if we want to raise 500 million yuan now?

Financing 1 billion?"

He Yuanhua was really surprised.

He Yuanhua really didn't understand corporate financing before.

That is to say, after the Southwest Stock Exchange officially opened, He Yuanhua finally figured it out.

The Southwest Stock Exchange is located in Yuzhou. What does it really mean to the people of Yuzhou?

Open your eyes!

Many people talk about financial theory in the same way.

As the general manager of Yuzhou Iron and Steel, He Yuanhua naturally devotes himself to the development of Yuzhou Iron and Steel.

After learning about the stock market, he had the idea of ​​going public.

IPO financing is great!

Borrowing money from a bank requires interest.

But by financing in the stock market, you can directly get a large amount of money without any interest.

The current largest shareholder of Yuzhou Iron and Steel is Shuchuan State-owned Assets Company, and the second largest shareholder is Yuzhou State-owned Assets Company.

Then there is a group of employees holding shares.

The listing of Yuzhou Steel this time was promoted by all parties.

The securitization of state-owned assets is conducive to the preservation and appreciation of state-owned assets.

Wang Yuguang was also very surprised: "To say that the biggest change on the exchange side is probably that Chen Huaiqing returned to Yuzhou."

Chen Huaiqing was not present during this period, so the exchange would naturally operate normally.

But when Chen Huaiqing comes back, the operation of the exchange will become different.

In the past, everyone might need to discuss things for a long time, but with Chen Huaiqing, they might just make a decision directly.

He Yuanhua: "You mean, this is what Chen Huaiqing meant?"

Wang Yuguang: "Mr. He, why don't you call and ask?"

Yuzhou Iron and Steel and Mota Group have quite a lot of cooperation. As the general manager of Yuzhou Iron and Steel, He Yuanhua has met with Chen Huaiqing many times and even sat together for meals many times.

In fact, instead of He Yuanhua calling, Chen Huaiqing called instead.

This chapter is not over yet, please click on the next page to continue reading the exciting content! "Old He, are you living a good life now?"

He Yuanhua smiled and said: "My Mr. Chen, please stop joking. You have the final say on how I live my life!"

"Don't say that, I'm relying on you to live my life now. How do you think about the one billion financing thing?"

The steel currently produced by Yuzhou Iron and Steel is not exported at all, and is all digested locally in Sichuan.

There is no such thing as planned production quotas at all, and it is completely market-oriented.

Although there are several steel companies in Sichuan, the output is simply not enough, and steel must be purchased from other provinces.

"I was thinking before, what's going on here! Director Chen, we Yuzhou Iron and Steel can't afford so much funds!"

Yuzhou Iron and Steel naturally has plans to expand production capacity at this time, and financing 500 million is enough to build a new factory.

Chen Huaiqing smiled and said: "Mr. He, let's have dinner together tonight and talk."

"Okay, I'll make a reservation. There's a new bone soup restaurant on the other side of the road. It tastes very good. How about we go there?"

It’s not suitable to eat stir-fry on a cold day!

Why does it take an hour or two to finish a meal and the stir-fried vegetables are all cold?

It's great to eat soup pot or hot pot, it's warm and you can eat it for as long as you like.

In China, there are not many things, just various restaurants, restaurants and so on.

If you look around the street, within a few steps, you will find something that catches your eye.

Of course, these haven't opened all over the streets at this time, but this trend is already there.

Yuzhou's economy has developed rapidly in recent years, and people's living habits have also changed a lot.

In the past, people didn't have much money, so they could go home to eat and just go home.
To be continued...