Lang Xianping: Who Controls The Pricing Power Of Global Commodities?

In recent years, prices of steel, rubber, oil and other commodities that are heavily dependent on imports often fluctuate. China, as a big country in demand, does not have the right to speak, but this is our sorrow.

demand

Why do commodities fluctuate? That is the manipulation of new imperialism.

First of all, demand is controlled by others.

The developed countries have pferred the highly polluting industries all over the world.

For example, the United States needs oil pipe, and the United States does not produce it, and puts it in China.

Secondly, not only is demand controlled, but also raw materials.

On the surface, we seem to be dealing with a certain country and buying their raw materials, which is actually wrong.

For example, Cote d'Ivoire is the main coffee producing area. Its coffee exports are mostly controlled by several foreign capital, and the pricing of raw materials is controlled by developed countries.

Iron ore is more typical, and the world is dominated by Rio Tinto, BHP Billiton and vale three giants.

Japan's negotiations with iron ore giants can give us some lessons.

Japan's iron ore negotiations are not steel mills, but the responsibility of the business community, namely Mitsui products and Itochu.

The final sale is also responsible for two businesses. Japanese steel companies are only responsible for production.

This is the efficient integration of the upstream, middle and downstream industrial chains, and the alliance between steel enterprises and businesses.

The advantage is that if iron ore prices rise and businesses earn money, they will give part of the profits to the steel plants from the upstream, and then sell the high-tech products that we can not make through the downstream sales, such as special steel, to the Buyers by way of raising prices.

Finally, the loss of part of the steel mill is pferred to the downstream.

Vice versa.

As a result, Japanese steel companies simply did not care about the rise or fall of iron ore prices, and eventually passed every price increase.

Corn in China

The US government is subsidized by corn and cotton.

From 1998 to now, the US government has subsidized corn up to 29 billion US dollars.

From August 1999 to July 2003, cotton producers in the United States received a total subsidy of US $12 billion 400 million, while the US cotton output value was only $13 billion 900 million over the same period, and the subsidy rate reached 89% of the output value.

That is to say, the US government grants us $0.89 for every dollar planted by US farmers.

With such a large amount of high subsidies, low price dumping is carried out on China and other countries at low prices, occupying the market, and ultimately manipulating prices, thereby affecting the relevant industrial chain.

Industrial chain integration is the top priority.

That is the integration of industrial chains.

We need to know that China is only a part of the global industrial chain.

If we are the weakest link, China will be the biggest victim if there is any trouble.

Others call us a big manufacturing country. Our manufacturing is only the thinnest part of the division of labor in the international industrial chain.

Other links outside the manufacturing chain, including product design, raw material procurement, warehousing and pportation, order processing, wholesale and retail, are all in the hands of others.

We have entered an era of unprecedented industrial chain competition. What we call before is what I call "new imperialism". The Chinese manufacturing that only works on labor cost has come to an end.