.Chapter 31

"What is this gentleman?" The blonde beauty looked at the housekeeper behind Zhang Yan with some dissatisfaction. She was interrupted by a stranger at such an important meeting, which made her a little unhappy.

"This is Mr. Zhang Yan, the representative of China Iron and Steel Factory."

The beauty of the hairdressing girl did not say anything else, but picked up the information and said to the representative of Rio Tinto: "If your company thinks that it is the right attitude to only care about one's own life and death, and regardless of the life and death of our manufacturers, then I don't think this negotiation is necessary. I have always believed that iron ore production companies and steel plants are symbiotic. Under no matter what the circumstances, iron ore production companies should not do anything that harms the interests of steel plants. What do you think?"

"You are right, I apologize for what I just said." Rio Tinto's representative apologized reluctantly, which surprised Zhang Yan. How could this blonde woman say so naturally? The words that were full of domineering in Zhang Yan's opinion were said by this blonde woman so naturally, and the dragging representation obviously accepted this domineering statement, which was what surprised Zhang Yan the most.

In Zhang Yan's memory, even if the profits of Chinese steel companies were not as good as Rio Tinto's annual profit, the entire steel industry became a worker of the three giants of iron ore, no company had ever said similar things in 2008. On the contrary, the newspapers were filled with whines, and Chinese steel companies seemed to have surrendered before the battle.

Under Zhang Yan's attention, the blonde beauty did not feel uncomfortable, but took out the document and continued: In the four years of 2002, the weighted average offshore cash cost of the 76 mining companies we surveyed decreased from US$8.62/ton ton to US$6.55, a decrease of 24%.

The weighted average offshore cash cost of the 21 pellet manufacturers surveyed in 2002 decreased by 9% to the US dollar degree. The three pellet factories in Brazil had low raw material costs and high equipment efficiency, so the pellet mine cost was the lowest, and the US dollar degree was in 2002. The grade of the US and Canadian mine subway ore was low. The ore had to go through crushing, screening, strong magnetic separation (or weak magnetic separation) and other enrichment processes, so the ore cost was high, and naturally the pellet mine cost was the highest, and in 2002 it was the US dollar degree.

This time, the representatives of BHP Billiton stood up and expressed their disagreement:

"Although the cost has decreased now, cost control will become increasingly difficult in the future: many mines become deeper and deeper, and the transportation distance between waste and iron ore continues to increase; there are fewer ore rich, and the cost of ore treatment will gradually increase."

The blonde beauty said without hesitation:

"Yes, this problem exists, but mining companies can improve economic benefits through process transformation, scale benefit optimization, operational collaboration and reasonable investment decisions. Although it cannot continue to ensure a significant reduction in costs, it will definitely not increase costs. The overall trend in the next few years is that output continues to increase and costs are getting lower and lower. You have no objection to this."

The representative of BHP Billiton was hesitant. It was obvious that Rio Tinto's people were defeated just now, which made him unconfidant to maintain a tough stance. After all, in 1998, the three major mining groups wanted to raise prices. Unfortunately, they encountered a financial crisis. Five major steel mills in Europe reduced production together, reduced the number of iron ore imports by 25%, forcing the three major mining groups to accept a decline of more than 11%. Not far away, BHP naturally did not dare to provoke disputes again.

Seeing that the representative of BHP Billiton did not refute, the blonde beauty continued to speak, and Zhang Yan was sitting in her seat. She looked carefully at a document that belonged to the Japanese Mitsui Company not long ago, but at Zhang Yan's polite request, the document has now fallen into Zhang Yan's hands.

After seeing this information, Zhang Yan realized why steel companies can gain the upper hand during negotiations. His feelings have made these three major mining groups extremely thoroughly researched, knowing themselves and their enemies and winning every battle. This path will never be wrong no matter when it reaches the end. Compared with this information, the information you found is a bit deeper.

The first thing that the information introduces is the land land arrival cost of several major iron ore groups

In 2002, the average cash cost of land-based non-pellet mines from Australia to Japan was USD. Brazil to Japan was at a geographical disadvantage. Although exporting Brazil to Japan was at a clear advantage in product quality, the iron ore trade volume was not affected. For example, Brazil's carajas (Calajas Mining Company) exported iron ore to Japan increased by 4% in 2002. The selection efficiency of cvrd (Brazil Vale) made its products competitive in European and Asian markets.

The rise in freight costs give Australia a greater advantage in the Asian market, while Brazil has a local advantage in landing cash in the European market. The delivery cost of Brazilian iron ore in the European market is USD degree and Australian iron ore USD degree.

Then there is the offshore cost analysis of several major iron ore groups

About 58% of the geological mines are located in Brazil and Australia. Their iron ore exports account for about the total global exports. Australia is the country with the lowest iron ore production costs. Offshore cash on non-pellet mines has broken the constraints and improved labor productivity. Effective asset utilization, equipment utilization and productivity improvements can also help reduce costs.

The currency depreciation has benefited Brazilian manufacturers a lot. In 2002, the average offshore cash cost of non-pellet mines was about USD 5.58, a 32% decrease from USD 8.24 in 1998. In addition, Brazil also has the advantage of lower labor costs and mining area usage fees than most competitors. The recent merger boom in Brazil's iron ore industry has prompted CVRD (Value Brazil) to achieve rational operations and seek opportunities to further improve operational efficiency. Far-reaching operational synergy will be achieved through the planned implementation of the merger of MB (Brazil United Mining Company) and Ferteco (Fetecco Mining Company).

Kumbarresources (Kumbarresources) and Esman Mining Co., Ltd.) play a leading role in South Africa's iron ore production. In 2002, the country's iron ore offshore cash cost was about US$7.58. Due to the long distance between mines and ports, transportation and port costs account for about the depreciation of the offshore cash cost (the price used to calculate costs in mid-2002 decreased by 22% compared with the average in 2001) increased the competitiveness of South Africa's iron ore exports, because the cost was reduced in US dollars.

These information are something that Zhang Yan didn't know before. The potential of Kunba Resources Co., Ltd. seems to be very large. If possible, it still needs to invest in it. After turning a few pages and turning to the Canadian Mining Group, Zhang Yan couldn't help but feel excited and looked carefully. Although the main mine in Canada is carollake (Carol Lake Mining Company). Although montwww.piaotian.com was acquired, it will be spit out soon because few people can occasionally acquire this hot potato. In 2002, the average offshore cash cost of non-pellet mines was about RMB , down 9% from 1998. The average cash cost of pellet mines decreased by 4% year-on-year.

It can be said that qcm is like a treasure chest that contains the coexistence of essence and dross. As for whether to get the essence or dross, this is an unknown. No one dares to place this bet, because the previous gamblers lost, they were defeated by endless strikes and had to give up.

The last few pages describe the offshore cost analysis of each company. In general, due to the decline in various costs, the average cost of a major company has nominally decreased by 23% since 1998. The profits of iron ore have stimulated the production of the three major mining groups. In four years, CVR (Valley Vale), Riotino (Roy Tinto Mining Group) and BHPbilliton (BHPBilliton) have increased by 43%, mainly due to the acquisition of other companies. Compared with 1998, the weighted average offshore cost of the above companies has dropped to US$5.02, a decrease of 27%.

Zhang Yan looked at this information and his mind was in a mess. This information was like a huge dragon spear, nailing the three major mining groups to the ground. If Chinese steel companies also have such a report in the next few years, will they also get the initiative?

Zhang Yan's heart began to beat violently, but soon after, he was disappointed to find that even if Chinese steel companies had such information, it was hard to say that they could gain any advantage. After 2002, the negotiation performance of Chinese steel companies made Zhang Yan lose confidence. After 2002, the three major mining groups increased their production by four times, and the prices increased by more than four times. Such a price increase can be seen as unfair even in a bad way. But for some reason, Chinese steel companies are still not in a hurry at all, and they are slaughtered year by year, and they are enjoying it.

Let’s see how the European steel companies do it. Does it really fit the saying, "I don’t feel sorry for the little boys."

Just when Zhang Yan was depressed, the negotiations were over. The blonde woman cleaned up the injured information, shook hands with the representatives one by one, and finally walked to Zhang Yan's seat, hesitated for a moment before reaching out: "Hello! My name is Heidi

Zhang Yan stood up and said, "My name is Zhang Yan, I'm very happy to know you."
Chapter completed!