Chapter 126 - Chapter 126 The Difference Between Cif And Fob Prices Of Ore

Let's talk business!It's enough to say it once, and I have to emphasize it again. In fact, it has already explained something.Including Zhang Daochi, he is also a qualified businessman, but there is more or less some family affection mixed in. His two sons are completely different, and there is no family affection at all.In other words, Zhang Heng doesn't know. If he knew, he wouldn't be surprised. At the same time, he would deeply agree with this kind of business without talking about family affection. If it weren't for his own plan to cover up, he wouldn't need to do this.With mining ships, there are countless treasures in the ocean, all kinds of minerals, who knows how many times richer than on land, and some of them are not on land, but also on the seabed.Just treat it as business, company-to-company cooperation!There's nothing wrong with it."I will talk to Zhang Heng about this!"Zhang Daochi did not say much, but turned to the development plan of Chicheng Mining Company: "After my investigation in China these days, there is still a lot of room for development.In the field of processing and refining, we are not just a provider of ore, but a complete industrial chain, and China is the best choice.' "Over the years, the development of China has been too fast, so fast that you can't imagine it.There are many things you can't see from the Western media.For example, it took me only more than 7 hours to get back to my hometown from Beijing by car. "High-speed rail, at a speed of 350 kilometers per hour, has no ups and downs during the journey, it is extremely balanced, and there is no motion sickness.The entire high-speed rail network covers almost all parts of the country.I think you know what this means?""If we build a processing and refining base in the coastal area, then the ore can be directly transported here for refining and processing, and then sold on the spot. I don't know how much cost will be saved in the middle, and how much profit will be achieved?""Of course, there are many difficulties and obstacles here. At the very least, it is difficult to introduce high-tech technologies from outside, not just talents. In terms of technology, there are other aspects that are difficult. ""But we can rely on domestic technology and talents, and some domestic machinery and equipment, I believe it can be done.""Even if it doesn't work, we can refine the ore into metal powder, and then sell it as metal powder, which can also increase a lot of profits. If this model is run, the investment will be much smaller. "Before returning to his hometown, Zhang Daochi had visited several places and had an idea. He waited until now to say it in one breath: "I am old, and the company was handed over to you two brothers in the early years. You two brothers decide this matter."Delegating power to the two brothers.After all, the company will be inherited by the two brothers. They can't decide everything by themselves. Even if this is a major decision, he decided to delegate power once."Okay, father!""Father, keep in touch!"The two said one by one, which also represented the end of a video conference call.What should be said has been said, and what should be discussed has laid a foundation. The rest still needs the two brothers to discuss slowly, and then come up with a feasible plan, and then wait for the result of the conversation with Zhang Heng tomorrow.The next day arrived as expected!It's not that formal, but it's also very formal. From the beginning, there are two camps."Xiao Heng, let me tell you the truth!"Zhang Daochi thought of many ways to say it, and organized many ways, but he didn't use them in the end.He decided to use this way on a whim: "Chicheng Mining Company has no problems, but the situation is not as good as imagined.It should be said that all mining companies are similar, especially those abroad."On the surface, Chicheng Mining Company has many mines all over the world, whether in South America or Africa, but in fact, Chicheng Mining Company's debt ratio is also very high. When the company operates well, the profit is also considerable."But you know, Africa is a very chaotic place, but if it is not chaotic, there will be no opportunities. South America is relatively peaceful, but in such a peaceful environment, I wonder how many mining companies want to open mines?""It has caused a situation of scramble. In this case, the price paid for the mining rights of a mine through auction is much higher than expected. So what should we do? The only way is to enter Africa, which is relatively poor and chaotic, so the cost is naturally low.""But low cost brings about an exponential increase in risks. If it goes well, it can bring a lot of profits to the company, but if it doesn't go well, it may lose all its money."Zhang Daochi really laid it out and introduced the difficulties of Chicheng Mining Company.He also believed that with the intelligence of this nephew, he had seen through these things long ago.At the moment, he changed the subject and said: Buying mines, mining, and then selling ore, this is the business of Chicheng Mining Company. ""Since you want to sell ore, it is the same to sell it to anyone, for example, selling it to you is the same. "Zhang Daochi finally decided that they could cooperate and agreed to cooperate."Well, I want all kinds of ores, iron ore, copper ore, lead ore, aluminum ore, etc. If there are precious silver ore and gold ore, it would be even better!"Zhang Heng smiled lightly. He felt good that his second grandfather could be so sincere. He also made a small joke and then said: "In terms of price, it is settled according to the current price of futures. It is calculated as the landed price, which is better. "CIF and FOB!Don't underestimate the difference of only one word, 600. Sometimes the price can be very different, because the metal futures market is always changing.For example, if the price of one ton of copper concentrate futures is 65,000 today, it may become 68,000 tomorrow, or even fall below 60,000.If the ore is mined from Africa and then transported to the port in China, it will take half a month to arrive if the time is fast. Generally, it takes more than two months. As the transportation time is extended, the price may be higher.As for FOB, it is the price from Africa, and the price at CIF is 65,000. The price is the current price of the ore when it arrives at the port. Anyway, your ship will be shipped to the port, and the futures price will be what you are paid.If you are willing.You can keep in touch with the transport ship. If the ore price today falls and is very low, then you can let the transport ship drift overseas, wait for the price to rise in two days, and then immediately ship it to the port.This is a small trick, but it is a very effective small trick, provided that you have the intention and will not calculate these.To be honest, many mining companies have reasonably used this loophole rule that is not a loophole, in order to make higher profits.And giving the CIF price, Zhang Heng has given enough sincerity, otherwise he would have set it as FOB price.