Material Empire

Vol 2 Chapter 488: Great time not to be missed

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"Zhenjiang, aren't you talking about going to the south to do real estate?" Someone who thought he had guessed Sun Zhenjiang's thoughts aloud.

"Yeah, I heard that it ’s really profitable to do real estate in the South right now. I have two buddies. I went to the local government to approve a block of money. I pushed it with a bulldozer. , Faster than printing money. "Others also echoed.

Sun Zhenjiang smiled slightly and said, "The money in real estate is worthy of our buddies to remember? However, after the ticket is done, everyone has extra money in hand. If you want to play real estate, you can also play. Although things are slow to come, money is a long-term success. There are dramas that have been played for ten or twenty years. Unlike the one we are playing now, it is a one-shot deal. If you miss this village, there will be no shop. "

"Real estate is all small money?" Everyone said endlessly. "Zhenjiang, let's talk about it. What kind of business is it?"

Sun Zhenjiang sold enough, and then said leisurely: "I have received an internal message that I have decided to release the unified purchase and marketing of production materials. From January 1 next year, steel, cement, and flat glass will no longer need to be planned. The allocation of indicators will no longer limit planned prices. "

"Uh……"

Everyone was discouraged when they heard Sun Zhenjiang's words. What does this matter have to do with them? Some of them started in the past few years by reselling the materials in the plan, but these two years have been too tight, and this kind of business has been difficult to do. Now that the state is going to completely cancel the planned supply of production materials, it will not have much impact on them, let alone find any business opportunities from it.

Sun Zhenjiang had long anticipated the reaction of the crowd. He pointed his finger at Pittston and said, "This question, please ask Mr. Pittston to explain it to everyone."

"I'll explain this to you." Pittston began, his Chinese sounded a little strange, with a strong Virginia accent, but the grammar and wording were still accurate enough, and he must have passed the sixth level of Chinese Level:

"The price system of the means of production in China is seriously distorted. The planned prices are far from the real market prices, and the prices on the black market are significantly higher because of insufficient supply. Once the Chinese government lifts the planned control of the means of production, then Two things will happen:

First, a large number of enterprises that were unable to obtain the means of production will be able to obtain sufficient supply in the market. After their demand is released, the original relationship between supply and demand will be broken, and serious shortages will occur.

Secondly, due to the shortage of supply, the price of the means of production will rise sharply from the existing planned price, and will continue to rise to a level sufficient to eliminate excess demand. According to our estimates, this level will be more than double the existing planned price, and slightly lower than the current black market price in the Chinese market. "

"Well, that's the truth." Everyone nodded and said yes, but they didn't feel anything in their hearts. What Pittston said may have some complicated economics behind it. There may be mathematical models and the like, but for these businessmen who have done material business, they can also guess by instinct. Tsutton gave them science.

"Our plan is to eat a lot of materials before the price of the materials reaches a plateau, and wait until the price rises to a sufficient level before throwing them out. With this one in and one out, we can easily make a lot of money Money. This time, the materials released above include steel, cement, and glass. Let's not be too greedy. Taking down the steel market is enough for us to play. "Sun Zhenjiang added.

"Zhenjiang, aren't you talking about stockpiling? It can be played, but it's not easy to say that one person can make 1 billion," a businessman named Ling Yiping questioned.

Ling Yiping himself has done such business as hoarding Juqi, but in the past he did it in the field of consumer goods. The market prices of these young industrial products have soared, and Ling Yiping used the method of buying low and selling high, topping up a lot of goods such as televisions and video recorders, and also making some money.

He knows that hoarding such things is profitable, but also risky. If the market price rises at a slower rate than expected, the interest losses and storage cost losses caused by stockpiling are also considerable. Especially when many people are in the stockpile business, they also need to consider the price drop that occurs when they are shipped collectively. If they are not good, they may lose money.

Faced with the opportunity to release the price of the means of production, some goods should be properly stocked and thrown out when the price is high, there should be some profits, but when it comes to making everyone present here make no less than 1 billion, I am afraid it is sensational Right?

Sun Zhenjiang laughed with laughter: "Everyone thinks this way, right? Such a good opportunity can be said to be unprecedented. If we just grab some soup and drink, we will regret it forever. Tell everyone, let ’s This time, we ca n’t just stockpile. We have to take the initiative and stir up the price. When we get to the highest point, we suddenly pull out. Do you understand? So let me tell Mr. Pittston. "

Pittston was already ready. He took out a stack of information, and looked at them, introducing them to everyone:

"According to statistics from our fund research department, China's current annual output of finished steel is 65 million tons, plus about 5 million tons of imported steel, and the total market supply is 70 million tons.

If the Chinese government releases planned controls, the black market steel price will drop from the current 5,000 yuan per ton to about 2500 yuan, at which time the demand for steel in the entire market will rise to 90 to 100 million tons. Because the gap between supply and demand is as high as 20 million tons, the market price of steel will continue to rise, and it is estimated to be around 3,200 yuan, which can regain the balance between supply and demand.

Our fund and Mr. Sun's plan is to eat 10 million tons of steel at the price of 2,500 yuan. As the market supply has been reduced by 10 million tons, the contradiction between supply and demand will be even more serious, which will enable steel prices to rise to about 3800 yuan at a stroke. In this position, we throw out steel again, and strive to achieve inventory clearance before the price drops to 3,500 yuan.

Calculated in this way, the gross profit we have obtained through the difference between purchase and sales in the steel market is about 10 to 12 billion yuan. After deducting capital costs and storage costs, and then subtracting some marketing costs, the final net profit should be 8 billion to 10 billion. Yuan. "

"Silk ..." Everyone in the room took a sigh of relief, which was really too much of a trick. Some of the people here have played with speculation, but the biggest limitation is to speculate within one or two provinces, and it is not such strategic materials. According to Pittston's plan, everyone wants to stir up the price of the entire steel market at the national level, and then profit from it. If this vote is made, it may be a bit exaggerated for everyone to make one billion yuan, but it is still possible to get three or five billion yuan in profits.

However, high profit also means high risk. If the speculation fails, the price of steel does not rise to a high level of 3800 yuan as expected, then everyone will be caught. The funds needed for hoarding steel are not a small amount. At the price of 2,500 yuan per ton, hoarding 10 million tons of steel requires 25 billion yuan, and the annual interest rate is more than one billion yuan. This cost cannot be underestimated.

"Zhenjiang, this plan is quite tempting, but in case we didn't fry the price or it took too long, it was a bit troublesome." Ling Yiping said.

Sun Zhenjiang said to himself: "Yiping, you can rest assured that these issues have been considered by the experts of the Meson Fund. This time, the Meson Fund is also planning to invest 10 billion yuan. Do you think Americans will trade at a loss? People The trick of playing white wolves with empty gloves is much better than ours. We are just making money with others. What ’s terrible? "

"Zhenjiang, Mr. Pittston said just now that there is a gap of 20 million tons of steel. What if the country allows those steel mills to increase their output? Also, the price is high, so the soil below does not need so much steel. Did you fill it in? "Another businessman named Guo Kaining also asked questions.

Sun Zhenjiang did not answer, and he gave the opportunity for explanation to Pittston. Pittston coughed and said to everyone:

"We have analyzed the capacity reserves of Chinese steel mills. They can increase the output by up to 5 million tons, and they cannot be produced right away. It takes time for China's iron ore and coal supply to increase. Turning it into steel production capacity again, the time needed in the middle is enough for us to operate. In terms of imports, the Chinese government is currently able to raise limited foreign exchange funds ~ www.novelmtl.com ~ This determines that its import volume cannot increase significantly.

As for demand, 80% of the demand in the Chinese steel market is rigid. No matter how high the price is, they must purchase. In addition, we have not considered the new demand brought by the development of the real estate industry in the south, because the speed of real estate development cannot be predicted at this time. If the development of the real estate industry in the South is fast enough, then we expect the supply-demand gap to widen further. "

"That's the way it is." Everyone looked at Pittston's eyes and began to become hot. Otherwise, how can Americans have the ability to think about what we can think of, they have already thought about it, and have done some calculations. Those of us who stay in China every day can't count how many steel mills there are in China, but Americans can do it. What a great skill.

How can you lose money if you do business with someone who has this ability?

Thinking of this, everyone's mind is alive, and desperately calculating the amount of funds they can raise in their heads. This is an opportunity with a profit of up to 10 billion yuan. The more you invest, the greater the return. As Sun Zhenjiang said, if you miss it this time, you will really regret it forever. r1152

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