We are all reborn, who wants to be the richest man?

Chapter 630 You come and I go
What is coming will eventually come. Although the United States has the donkey to hold them back, it is impossible for the Luo family to do nothing.

As soon as Far East Communications came into contact with China Unicom, the Luo family's action began.

As December approached, the international oil prices, which had been quiet for several years, suddenly changed.

The reason is that the U.S. government announced that it would increase oil reserves, and major oil companies in the United States have cut production for various reasons.

"What are core strategic materials? The word core is not given for nothing."

The factors affecting oil prices can be roughly divided into two categories: supply and demand and non-supply and demand. The supply and demand relationship is the natural adjustment of the market, such as force majeure factors such as disasters, and the economic development speed is too fast and oil production cannot keep up for a while.

What is not related to supply and demand is the political factors and the US dollar. International crude oil prices are calculated in US dollars. When the US dollar is not so strong and stable, crude oil prices will be affected.

Regardless of whether the Luo family's production cuts were intentional or not, this will cause an imbalance in market supply and demand, leading to rising oil prices.

In recent years, international oil prices have been very stable, basically hovering between US$18 and US$20. As soon as the United States oil company made a statement, the international crude oil price rose to US$22.83, and there is still an upward trend.

"This is a warning. The rise in oil prices has an impact on us, but it is not as huge as that on other companies. On the contrary, the profits we can gain from the financial market far outweigh the losses in the real economy."

Welch was not worried about the rise in oil prices at all because the Far East Group was different from other industries.

Why is it that when oil prices rise, even bread prices will rise? In fact, this question is very simple.

Friends who live near an oil refinery must know that the impact of rising oil prices on us can be seen by looking at the companies around the refinery.

The first is the refinery itself. The gasoline produced not only affects our daily driving. Whether it is land, sea or air transportation, the rising oil prices will inevitably increase the cost of transportation.

All transportation requires burning oil, and any goods produced need to be transported. It can be said that the cost of any commodity has increased.

Another example is a rubber factory. Rubber is an industrial basic raw material and is needed in a large number of products.

Not to mention other things, the refining process requires a large amount of oil, and the cost of many things has increased again.

Going a little further, many people would not think of fertilizer factories. The nitrogen, ammonia, urea, etc. in fertilizers are all extracted during the oil refining process. This is related to agriculture. Will the cost of agricultural products increase again?
There are also chemical fiber factories. Which fabric we use does not contain some chemical fiber? Should the prices of clothing also be raised?

Even more widespread are plastic factories, which are not only engaged in packaging but are almost everywhere.

Anyone who has seen an oil refinery may know that there are many board factories around the refinery. Why do we always ask whether it is solid wood when we buy furniture? Because except for solid wood, other boards basically contain chemicals. Aren’t the raw materials all petroleum?

There is no need to talk about more areas. All you need to know is that the rise in oil prices and the rise in the prices of food, clothing, housing and transportation are inevitable.

Therefore, the rise and fall of oil prices will have a huge impact on the global economy, but as Welch said, the Far East system is different.

Don’t forget that the Far East Group has huge oil reserves in the Far East region of Russia. Whether it is Russia, Russia or Rabbit, the Far East Group has its own refineries.

The rise in oil prices will have an impact on Far East products, but compared with other companies, the impact is definitely not to the point where there is no need to worry.

Putting down the teacup in his hand, Luo Nianzhong revealed a weird smile and said, "I was wondering whether we should take this opportunity to add fuel to the fire of the Luo family."

"What do you mean?" Welch became interested.

"Rhenium and hydrogen."

Many people may not know that rhenium plays a very important role in oil refining and is the best catalytic material for oil refining.

Although BITCO's rhenium ore reserves are not large, any reduction in production will definitely affect the cost of oil refining, because the global production of this metal is very small and it is a very rare metal.

The reason why few people discuss it is because it is replaceable, but the effect is definitely not as good as rhenium, and it also means an increase in cost.

The same is true for hydrogen. Petroleum refining requires a lot of hydrogen. Don’t forget that Hong Kong Gas is now one of the world’s largest gas suppliers, and its factories have already opened in Eastern Europe. “The attributes of our products are here. Most electronic products are high-end. Those who can buy our products don’t care about a slight price increase.

But the situation is not so good for electronic products in other countries around the world. Many assembly manufacturers are very sensitive to various costs, so why not take advantage of this opportunity to clean up the market."

This is Luo Nianzhong’s real purpose, to put the blame on the Luo family, who is in charge, and he will integrate the industry behind the scenes.

“This is a good opportunity. The fittest will survive, so we should eliminate some manufacturers first.

But there is no need to rush this matter, we need to discuss it with Robert and Du Huilian to maximize the benefits."

Welch agreed with Luo Nianzhong's idea, but industry was just a cooperation and making money still depended on finance.

Now that I am one of the dealers, there is no reason for me to let go of this piece of fat meat.

The interests of the Luo family are the interests of the Welch family. This is now an indisputable fact. The two sides have too many ties and are inseparable.

Among the elders who followed Luo Nianzhong at the earliest, every family has benefited from it, and their family assets are all calculated in tens digits.

We do what we say without any delay.

On Christmas Eve, when the entire East and West are immersed in the joy of the arrival of Christmas and New Year, major manufacturers have launched various publicity and promotional activities, striving for this last fight at the end of the year.

Read more latest popular novels at 6.9*shuba!

However, in this celebratory atmosphere, Liu Lili, the newly appointed deputy public relations manager of Far East Group, held a press conference.

“Due to the recent rise in raw materials and costs, Far Eastern Group has no choice but to raise the prices of some electronic products by 5% to 10% in order to have enough profits to support research and development.

Starting date? In order to allow more consumers around the world to have a wonderful Christmas, the price increase will take effect from December 12th.

Far East’s statement was like a fuse. Within two days, most electronics manufacturers followed suit and raised their product prices.

In fact, they have been waiting, waiting for the Far East to take the first move, because there are signs of this.

Two days ago, on December 12, Hong Kong Gas first issued a statement that due to the rapid growth of the market for electronic specialty gases, in order to better supply cooperative manufacturers, it will reduce the production of some gases, among which hydrogen accounts for the largest share.

Ordinary people cannot understand or pay attention to such announcements. Some investors even think it is a good thing because the product is in short supply. Hong Kong Gas’s stock price also soared because of this announcement.

But those who truly understand know that this is nonsense.

Do you think you are cooking? You can just change the ingredients and cook in the same pan? This is just fooling fools.

There is a problem. This is the first reaction of people who know the business.

Sure enough, a day later, the clues appeared. BITCO, Australia's largest mineral resource producer, announced that it would reduce its expected rhenium production due to technical reasons.

When we think about the recent oil price hike, this is really two gods calculating against each other and leveraging each other's power.

Therefore, it is not surprising that the prices of Far Eastern electronic products have increased. All manufacturers have been waiting for this moment because they are the ones who are having the hardest time.

Raise the price. If you don’t raise the price of Far East’s products, consumers will not accept it. What you sell is the price-performance ratio.

If they don't raise prices, the rising costs and raw materials will make them feel overwhelmed, and many small manufacturers will basically have no profit.

Consumers don’t see this, they only know that electronic products will increase in price after Christmas, which makes the pre-Christmas sales season even more popular.

People are now swiping their credit cards like crazy to buy some electronic products that they may or may not want to buy and want to wait for a while before getting.

(End of this chapter)