Valley Emperor

Vol 2 Chapter 1769: Overcapacity

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The reason for contemplation is not because they found a problem. In fact, this report is just a very simple report on the development of the steel industry, and it does not say anything too in-depth.

Moreover, the development of the steel industry as mentioned above is very good. At first glance, there is no problem!

But these few people are very talented, and they will never be deceived by the appearance of things. Even if this report seems to be fine, they still know that there must be a problem here.

Otherwise, the prince would not have called them over overnight to analyze the report so solemnly!

But what exactly is the problem?

Someone replied: "His Royal Highness, on the surface, there is no problem with this report, but the deep meaning behind it is still unknown for the time being!"

At this time, Li Hao said: "Tomorrow, this official will report to the emperor, and this is the report."

Li Hao said so, and they knew the seriousness of the matter.

No matter how light this matter is, it is still a test. If you do well in the test, there may be no benefit, but if you fail the test, you will definitely be criticized.

The prince was criticized, how could they have a good life?

Soon, they began to diverge their thinking, talking about various possibilities. Some people said that the rapid development of the steel industry will directly lead to a substantial increase in the production of major mines. At that time, it may lead to mining accidents and harm miners. matter.

Someone else said, does this mean that a new round of railway construction in the empire is about to start, and His Majesty is not concerned with steel, but the railway development behind the steel industry?

This bunch of people discussed and discussed various possibilities, from the economy to the people's livelihood to the military. Basically, everything that could be related to steel was pulled out and discussed by them, and they didn't even get involved. The relationship is also pulled out by them.

After expanding the scope in this way, it is natural to be able to find a lot of problems.

But the problem is that this report is just a report on the development of the steel industry. If there is a problem, it must be a steel problem, or it is a problem directly related to steel.

If it is too deviated, Li Hao knows that his father and emperor has never liked to play this kind of trick of guess who I am, guess who I guess you, and will not send a steel report alone.

Since the steel report was sent, it must be a steel problem.

If when I report tomorrow, I talk about so many things, I'm afraid it won't end very well!

The father and son have been together for so many years, Li Hao dare not say that he understands his father 100%, but there are still some on the seventh or eighth floor. At least some of Li Xuan's superficial hobbies and dislikes are very clear to him.

The father hates people who talk rhetorically, but even more hate pretending to understand!

So he thought, if he really can't find any problem, he can only honestly say that he doesn't see the problem there. According to past experience, the father at most means that he reads a few words. They all read the words in the pig's head, but they will not be really angry, but will point themselves, and then let themselves continue to solve the problem according to the instructions.

You won't get mad just because you say you don't understand!

But if you don't understand and pretend to understand, when you talk rhetorically, then the father will go crazy!

Once the father becomes angry, then the problem will be serious. In the future, he may throw himself a lot of affairs on the grounds that he has not worked hard enough, and his experience is still insufficient.

That scene is so scary!

After discussing this for a long time, and after reading a lot of materials, someone finally asked with doubts: "Is it because this steel production is expanding too fast, so I am worried that these steel production capacity cannot be digested?"

But this statement was refuted as soon as it came out: "Today's enterprises are not ignorant, they all produce according to orders, and now the orders of major steel mills are full, and they can't produce at all, otherwise they will not be able to produce. The production will be expanded, how can it be indigestible.”

"Even if there is more production capacity, if there is no order, the steel plant is not stupid, how can it be stupid to produce so much steel!"

Another humane said: "It's just that once these steel plants are running, they will not stop production easily. Once they stop production and want to restart the production line, the cost will be very high."

"Also, even if a part of the production capacity can be reduced, it will cause a large number of iron and steel workers to lose their jobs, and then it will directly affect the mining and transportation of iron ore and coal mines on the market, and then cause a series of reactions!"

At this time, Li Hao said, "Overcapacity?"

Someone on the side said: "The current demand for steel in the empire is strong. According to the current production capacity, even if the production capacity is increased several times, it can be completely digested!"

"However, what this report says is that steel is expected to increase production capacity by more than five times. Can so much steel be digested?"

The others didn't answer him at all, including Li Hao, they all started to browse through the piles of various materials.

No one is a fool. At first, no one thought about the problem of overcapacity. Now when someone mentions it, they immediately think of many possible serious consequences.

Half an hour later, when they were flipping through the materials, their faces became darker~www.wuxiaspot.com~ An hour later, Li Hao was the first to put down a lot of materials. He has already been able to estimate it. According to the expected development of various industries, although the demand for the steel industry in various industries will still be huge in five years, even extreme ones may reach two or three times the current level.

But for the more than 10 million tons of steel production capacity that broke out in the steel industry, it will be able to digest seven or eight million tons at that time. What about the extra two million steel production capacity?

This waste of production capacity is a trivial matter, and more importantly, it will cause a series of economic fluctuations in the distance. It is estimated that in order to compete in the market, the price of steel will fall to the freezing point. At that time, many iron and steel enterprises will not be able to bear it and will eventually go bankrupt.

Don't think that bankruptcy can reduce production, and then achieve the good thing of reducing production capacity.

Bankruptcy will trigger a series of incidents, workers will lose their jobs, and upstream industries will be greatly implicated. Loans issued by banks will be recovered, and raw material suppliers will not be able to recover their funds, which will lead to large-scale bad debts. .

The economy has always been interconnected. If something goes wrong in the steel industry, other industries will inevitably be affected. Li Hao doesn't know how big the problem will be, but there will definitely be problems.

Overcapacity!

In the past, Li Hao never imagined that he would encounter this kind of problem. There has always been insufficient steel production capacity, which has restricted economic development, but he never thought that one day he would face the risk of overcapacity.

There is too much steel to buy, which was unimaginable before!

And this kind of nonsense is how it sounds, but it has become a fact!

The cold data told him that if the steel industry continues to expand like this, within four or five years, the steel industry will definitely have a crisis of overcapacity!

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