Rebirth 76: Industrial Internet Empire

"Mr. Wirtz, what do you think?" After a brief exchange of greetings, Klein asked casually.

"Before coming to Yanjing, we also did a lot of investigations. The chaos in rare earth mining in the northwest and south is serious, and the government is simply unable to carry out effective rectification!" Wirtz said after thinking for a while.

Klein laughed loudly and said: "Haha! The Chinese like internal friction when doing business. They can obviously control the pricing power, but they have to fall into the vicious competition of price wars. Mr. Wirtz, it seems that we can unite lanthanum, cerium, and praseodymium again this time. , Neodymium hands have lowered the price!”

"It is said that Chen Jinhe from Zhiyuan Mining Group is specifically looking for you today?" Wirtz asked calmly.

Klein nodded: "Yes, Zhiyuan Mining Group is willing to make some concessions based on last year's price, but the prerequisite is that Rhodia needs to sign a long-term purchase of rough-processed rare earths with Zhiyuan Mining Group at a relatively fixed price. Agreement!"

Wirtz pondered for a moment and then said: "That's right. Zhiyuan Mining Group has offered to cooperate with arm to develop rare metal associated mines in Africa. It seems that they are indeed worried about overcapacity in the rare earth industry..."

Klein chuckled and said: "Zhiyuan Mining Group has invested heavily in mines and infrastructure construction in Africa over the years, but never imagined that in the face of the financial crisis, if it wanted to recover the investment cost as soon as possible, it would have to find partners to jointly develop African mines. Got it!"

"I still have another doubt that I can't figure out. The Zhiyuan Group has always been wealthy and has tentacles in almost all walks of life. They have many rare metal mines, but they have only been engaged in simple rough processing, and then shipped them back to mainland China for production. , why not directly invest in rare earth smelting and purification production lines in Africa?" Wirtz asked with some confusion.

Klein thought for a while and then said: "In fact, this is also easy to understand. The political power of some African countries is not stable. Not only rare metal associated mines, including copper ore and iron ore, Zhiyuan Mining Group also mostly conducts simple and rough operations. After processing, it is shipped back to mainland China. The only difference is that they do not have the technology to smelt and purify rare metals themselves, so they can only cooperate with us!"

"Mr. Klein, it seems that we can keep the price down this time!" A sly smile appeared on Wirtz's face.

"Mr. Wirtz, to tell you the truth, before coming to you, I have communicated with Sumitomo Metal Specialty Mining, Marubeni, and Mitsui. They are willing to work with Rhodia to establish a price alliance to lower prices together, as long as we can sink the price." Don't be angry, the Chinese will take the initiative to lower prices soon..." Klein said.

Wirtz nodded and said: "What do you think of the upcoming pilot rare earth futures?"

Klein pondered for a moment and then said: "The Chinese government has launched a pilot project on rare earth futures at this time. It wants to stabilize rare earth prices through futures trading, but it is afraid that things will backfire. Most companies in China have no experience in futures trading. As long as we can operate it, it is entirely possible to achieve low prices." Before buying rough-processed rare earths at high prices, sell the smelted and purified rare earth compounds at high prices in advance through the futures market!"

...............

In anticipation of overcapacity of rare earths, almost the vast majority of smelting and purifying companies have suspended the purchase of raw materials. The more so, those rare earth mining companies that do not have the ability to smelt and purify themselves are even more anxious.

Zhiyuan Mining Group is one of these many anxious rare earth mining companies. Their sales team is more active than ever in promoting foreign smelting and purification companies, but with little success!

This is always the case in business negotiations. The party that cannot hold its breath will always be more passive, because others can clearly see your trump card...

Almost at the same time, Zhao Hengbo and Chang Yonggui used their personal connections to frequently contact major rare earth mining companies like business brokers.

These rare earth mining companies, which are in the midst of anxiety, are like drowning people who suddenly grasped a life-saving straw. As soon as they heard that someone was willing to sign a long-term purchase contract for rough processing of rare earths, they readily agreed.

To be on the safe side, Zhao Hengbo did not disclose the entire plan to these people. The only condition for signing the contract was confidentiality. He was not allowed to disclose the contract details to anyone. Once the contract details were leaked, the buyer had the right to unconditionally cancel the contract!

.........

The rare earth futures launched by Donghai Futures Exchange were also listed as scheduled.

At the suggestion of the Metallurgical Industry Bureau, Donghai Futures Exchange suddenly launched four light rare earth futures trading varieties: lanthanum, cerium, praseodymium, and neodymium, and four heavy rare earth oxide futures varieties: gadolinium oxide, dysprosium, terbium, and lutetium.

Eight rare earth futures varieties have just been listed for trading. Under Yang Mo's instruction, the left and right hands were traded through linked accounts, and the trading volume began to rise...

Under market expectations of oversupply, selling has become significantly more active.

"How's it going? Has any fish taken the bait?" Yang Mo asked.

Guo Kexin said with some disappointment: "The total trading volume is only so small, how can any fish take the bait! You have put up such a big battle, it seems that your busy work was in vain!"

Yang Mo said confidently: "Don't worry! Where did you go? The market is too calm now! The contracts currently traded are basically rare earth compound manufacturers preparing for physical delivery."

"Then what should we do now?" Guo Kexin asked. She was a little puzzled. Why would she be interested in these unpopular rare earth futures that no one cares about, instead of actively trading non-ferrous metal futures such as Lun Copper and Shanghai Copper? ?

After Yang Mo stared at the board for a while, he raised his head and said: "No, there are no waves on the board. No big fish is willing to take the bait. Big fish like the water surface with high winds and rough waves. The methods of lifting and suppressing are simpler and rougher. Attract speculators!"

Guo Kexin glanced at Yang Mo as if he were a fool, and said disdainfully: "With this little trading volume, even a large retail investor can control the market and violently push it up. Anyone with a discerning eye can tell at a glance that someone is playing tricks on the market. , how can any fish bite such a straight hook?"

Yang Mo chuckled and said, "It's okay. Let's try to clean the selling plate first and see how the plate reacts. Maybe a fish will take the bait!"

"Huh? That's weird! Yang Mo, come here and take a look. There is really a big sales order. What should you do? Do you want to eat it?" Guo Kexin asked excitedly.

"Eat it, keep raising it, and see the other party's reaction!" Yang Mo said in a deep voice.

But the other party disappeared like a fish that suddenly disappeared.

"This rare earth futures is too boring, isn't it? The trading volume is pitifully small! You can't even see an opponent's market!" Guo Kexin's enthusiasm suddenly dropped and she couldn't help complaining.

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