"We're in big trouble now!!!"
At this moment, those around felt a chill run down their spines.
Clearly, everyone now understands Galaxy Mining Group's intentions: to monopolize the rare earth market and then raise prices!
The days when rare earth elements were cheap to buy are probably gone forever.
The party venue suddenly became noisy.
Everyone discussed the matter and considered solutions.
However, they were unable to come up with a good solution.
Rare earth resources are monopolized by Galaxy Mining Group, so they are not too afraid of other companies.
However, Galaxy Mining Group is a subsidiary of Wujiang Group and is not short of funds at all.
Therefore, Galaxy Mining Group could have chosen not to sell rare earths to them.
However, rare earth elements are core raw materials for many technological products, so we have no choice but to buy them.
In the end, they had no choice but to buy it at a high price.
At the party, some shrewd individuals had already taken out their phones to contact rare earth companies in China, preparing to preemptively acquire a large quantity of rare earth resources before anyone else.
After all, Galaxy Mining Group does not have a complete monopoly on China's rare earth market.
Chinese mainland.
Since Galaxy Mining Group held a press conference announcing that it would increase rare earth production, domestic rare earth companies have been terrified.
“Damn it, the competition in rare earth exports is already fierce, everyone is driving down prices. Now, Galaxy Mining Group is going to more than double its production, won’t the export price of rare earths plummet? How are we supposed to survive? If I had known, I would have sold the company to Galaxy Mining Group…” a rare earth company owner said with a worried look on his face, full of regret. After a long while, he muttered, “Before the price of rare earths crashes, I’d better contact Galaxy Mining Group and sell the company to them!”
Many rare earth companies were frightened by Galaxy Mining Group's previous press conference and rushed to sell their companies to Galaxy Mining Group.
More than ten companies signed acquisition agreements that day.
Unfortunately, in this era, information flows slowly, and there's a significant information gap between domestic and international markets. If these rare earth companies had just held on a little longer, they would have realized that foreign rare earth merchants were panicking and wanted to buy rare earth ore at high prices.
In fact, many rare earth companies do not deal directly with foreign companies; many of them are middlemen with export trading rights who profit from the price difference.
...
In the following days, foreign rare earth trading companies rushed to buy rare earth ore at high prices, causing the international rare earth price to soar!
"What?! The purchase price of rare earth ore has doubled?! Really?! Damn, how could this happen?! I've already sold the company!!!"
"Rare earth ore prices have gone up again? Oh dear, this is going to be a huge loss!"
At this moment, those who sold their rare earth companies are filled with regret.
The price of rare earth ore changes daily.
The price doubled on the first day, and in less than a week, it soared to five or six times its original value, yet demand still couldn't meet supply.
In the entire rare earth market, Galaxy Mining Group has not sold a single rare earth resource. Foreign companies that want to purchase rare earth ore can only obtain it from other rare earth companies at high prices.
Unfortunately, there were too many monks and not enough porridge, so the supply could not meet the demand.
The amount of rare earth ore that these rare earth companies can provide is simply a drop in the ocean.
Many foreign companies are offering high prices to purchase rare earth ore.
Europe, the United States, Japan, South Korea and other countries have sent notes to China, demanding that China increase its exports of rare earth ore and that Galaxy Mining Group sell its rare earth ore.
The Chinese authorities have long been unhappy with the undervalued sale of rare earth elements, and naturally support Galaxy Mining Group.
Despite pressure from various countries, Galaxy Mining Group remains undeterred.
Firstly, they have plenty of money; secondly, since Wujiang Group's products can't enter the US market anyway, what else can the Americans do to them?
It's important to know that the United States is the world's largest user of rare earth elements.
Europe isn't in such a hurry.
Furthermore, given Wujiang Group's significant investments in Europe, it will likely give Europe some face by selling some of its rare earth ore.
In fact, people from Europe had already contacted Zhao Ye, but Zhao Ye neither agreed nor refused, preferring to let things cool down for a while.
October 1st, 4 PM.
Fei Chengyi, CEO of Galaxy Mining Group, attended the press conference.
At the press conference, Galaxy Mining Group provided an explanation when asked by foreign journalists why it does not sell rare earth resources.
"That's a good question. There are indeed some reasons why Galaxy Mining Group does not sell its rare earth resources."
"Firstly, our company believes that rare earth reserves and production are very limited and extremely precious. However, in the past, rare earths have been sold at bargain prices, which is unreasonable and has caused huge losses to China! The significance of our Galaxy Mining Group is to solve this problem and gain bargaining power over rare earth resources!"
After 1990, China built hundreds of rare earth plants and exported large quantities of rare earths. The United States was cunning. Because we did not have pricing power over rare earths, we could only export them at low prices. The United States, on the other hand, bought large quantities of our rare earths, using them as they went and stockpiling them, planning to sell them back to us after we had exhausted our reserves.
Does the United States not have rare earth mines? The fact is that the Mountain Pass mine in California was once the world's largest rare earth mine, with reserves enough to supply the United States for more than 280 years!
Besides the United States, Russia, Australia, Canada, and Brazil have also done the same, paying close attention to protecting their domestic rare earth resources and shutting down their own rare earth plants. China, with 36% of the world's rare earth reserves, accounts for 80% of the global trade market share, yet the prices offered are so low—this is completely unfair treatment.
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