Section 44 Steel Problems
Zhao Guodong ignored the buzzing and vibrating phone. The private phone rang, it must be a private phone. When talking about business, he did not want to interfere.
"Last month I held a talk with the president of BHP China and a counselor of the Australian Embassy. Although the other party did not clearly mention the issue of ore price increase, I felt that the other party was coming with a strong attitude. The other party was very tough and believed that our domestic demand will continue to grow this year. We insisted that as the demand for bulk goods increases, iron ore prices will enter a long-term and stable upward channel. I told him that the country is severely rectifying backward production capacity. According to our investigation, domestic steel production capacity is actually oversupply. Steel companies will usher in a difficult year this year. We asked BHP to face up to the new situation that has emerged and make reasonable decisions..."
Zhuang Yunlu, director of the Industrial Coordination Department, has gradually captured Zhao Guodong's interest. The new deputy director in charge is obviously very interested in steel enterprises and the annual iron ore negotiations. He has reviewed the rectification and growth of steel production capacity in recent years, and has even made a very detailed understanding of the content of the first-time negotiations between the three major domestic and foreign mines. The degree of detail of his understanding is amazing.
Zhuang Yunlu Chong had never met a deputy director of the Development and Reform Commission, who would spend so much energy on the details of each negotiation so seriously and meticulously to study the details of each negotiation, which was a bit unexpected.
When the other party spent so much effort on this, Zhuang Yunlu realized that Zhao Guodong seemed to be trying to touch this hot potato.
This sweet potato is hard to touch.
Zhuang Yunlu didn't believe that Zhao Guodong had no idea about the complexity of this issue. Every year, his negotiations with foreign mining giants were full of fighting spirit and returned like a dog. Anyone who went to negotiate had to make it difficult for him to be out of the inside and outside, but the results were the same. This has become a routine, and the repeated tricks behind the scenes have also caused domestic steel companies to suffer a lot. The special pricing mechanism has put Chinese domestic steel companies under extraordinary pressure.
Since the other party felt that he was touching this hot potato, he was naturally mentally prepared. Even if he didn't know these inside information before, after he came into contact with these things during this period, he still pursued them tirelessly. Zhuang Yunlu knew that the other party's determination had probably been made up long ago.
"What's the other party's attitude?" Zhao Guodong refused to comment.
"The other party's attitude is still very tough. I only said that I would study it carefully when I go back, which is essentially a diplomatic excuse." Zhuang Yunlu shook his head, "These people have never really considered anything else, and their eyes are all on the interests."
"When business, what else can businessmen do if they don't stare at their own interests?" Zhao Guodong smiled and shook his head, "You want to say that they are short-sighted and hurt domestic steel companies and cause the decline in the industry will also have an impact on them? Humph, with the current negotiation pattern and the situation of our domestic steel companies, I think no matter how the three major mines torment us, we will only have the fate of losing our teeth and swallowing our stomachs with blood."
Zhuang Yunlu heard the implication that Zhao Guodong was not very satisfied with the current negotiation method in China, and wondered whether the other party would consider taking the initiative to change the negotiation method, but this is with the Ministry of Commerce...
"The steel industry is the basic industry of our country and is crucial to our national economy. However, the steel industry structure of our country is not satisfactory. This is certainly a historical problem, but I personally feel that it has a lot to do with the central government's failure to make up its mind to rectify this industry. The backward production capacity of steel enterprises has not been rectified. Environmental pollution, high energy consumption and huge pressure on iron ore directly lead to the biggest guarantee that foreign mining giants threaten us."
Zhao Guodong was thinking while talking about his own views. He did not have the habit of squeezing his hands in front of others. In the past few days, through his in-depth understanding of the domestic steel industry, his knowledge of this industry has become increasingly richer, and it is not much different from some of the situations he has mastered, but it is just even more shocking.
"The iron smelting capacity is over 100 million tons and the steel smelting capacity exceeds 50 million tons. In this case, the market should have been the best way to eliminate these backward production capacity. So why can these enterprises survive? In addition to large state-owned enterprises that can obtain support from various national policies, what about small and medium-sized enterprises?"
Zhao Guodong seems to be guiding everyone here to think about this issue. In fact, this issue does not need to be considered. "In fact, we all know that steel companies are largely a scale advantage. The larger the management level, the higher the management cost, the higher the technical content, and the more marketable the product, which determines that the company is vital. On the contrary, small enterprises have huge flaws in terms of scale, cost and technical content. In most of them, it is difficult for them to reach the level of large and medium-sized enterprises in terms of management level. So why can they survive?"
"On the one hand, the prevalence of local GDP ideology, local governments fully support the various policy subsidies, and on the other hand, enterprises sacrifice environmental protection to obtain living space. This environmental protection cost is not included in the production cost of enterprises in most places. The leaders of local governments do not understand this, nor do they not know this, but the assessment and promotion mechanism determines that it may harm the health benefits of more people, and what does it have to do with me? My political achievements are beautiful and my data is glorious. I should go to the next session. As for the future, it will cause headaches for people in the future. I think this is the most critical."
The cadres who came out of the local area are indeed different. Zhuang Yunlu even had a malicious speculation. The counterattack was more profound and sharp, and could expose the darkest side of the local government leaders. I wonder if Director Zhao had the same idea when he was Mayor of the Municipal Party Committee.
"I'm a bit far from it, but what is facing us is the problem of overcapacity. This is an important factor that leads to the chaos in the domestic steel market. How to solve the problem of overcapacity? I believe that the Commission has issued a lot of documents, but how is the implementation? I think." Although Zhao Guodong's tone was gentle, his words were not polite at all. "We can't just send documents and supervise documents like this, we have to have a decent move."
Zhao Guodong's last sentence seemed to reveal a murderous intent, which made Zhuang Yunlu and the other three deputy directors tremble in their hearts.
"Director Zhuang, I feel a little chilling in my spine when Director Zhao's last words." Deputy Director Peng Yongjin followed closely behind Zhuang Yunlu.
"Director Zhao attaches great importance to the issue of compressing production capacity in the steel industry. You have to arrange someone to draft an opinion immediately based on Director Zhao's intentions. I wonder if Director Zhao attaches so much importance to this issue, is it because the central government has new ideas to come out?" Zhuang Yunlu frowned a little annoyed.
"Director, this is actually not a new problem. As Director Zhao said just now, the key is to implement it. The implementation of problems requires the responsibility mechanism. How to reflect this responsibility mechanism? Who will supervise and hold accountable? This is not the final decision of our Development and Reform Commission." Peng Yongjin was a little dissatisfied: "There are their difficulties in the local area. You can bring you a basket of problems wherever you go, which is not easy to deal with."
Zhuang Yunlu stopped and stared at the other party fiercely, making Peng Yongjin feel puzzled, "Yongjin, I tell you, it's best not to hear this sentence in front of Director Zhao in the future. You have also seen his spirit these days. If he wants to stop or slip away, I tell you that there is no good result."
Peng Yongjin said a little aggrievedly: "Director, when did I stop me? I just told the truth. Can this issue of responsibility be solved in our department? If he can really invite Shangfang Sword, then we can't ask for it, but what's the point of walking around lukewarmly like before? If you offend someone, what's the effect?"
Of course, Zhuang Yunlu knew that what Peng Yongjin was saying was the truth, but Director Zhao was now warm. Anyone who poured cold water on him at this time would be uncomfortable. Maybe he would only know the benefits if he really hit the wall.
However, Zhao Guodong is also a cadre from the local area. Mayor *** has worked as the director of the Provincial Party Committee Organization for a year. How can he not know that the waters in the local area are deep and shallow? He is hiding the law and concealing the world. These methods are emerging one after another. When you come to the inspection team, it will be a waste of time. Once you leave, the door will be very good. This is playing the game of cats and mice. Cats and mice are not synchronized, and the rectification efforts and accountability mechanism are not sound. How do you realize your intention?
Zhao Guodong is not such a hasty person, nor is he a simple-minded person. Although he only revealed this sentence, it means that he is determined, confident and strategic to deal with this matter.
"Yongjin, don't let me down at this time. According to Director Zhao's intention, a systematic analysis of the current steel production capacity, especially the backward production capacity compression. You might as well click on some of the more severe areas, and then draft an opinion and show it to me. I guess Director Zhao will ask about this in the past two days. We must be mentally prepared. Hehe, I am a little enlightened to go to minefields now."
Chapter completed!