[Episode 30] Wear limit
The day after Lee Do-woon’s 49th birthday.
As Shin Woo-cheol said, Moon Jae-shin was standing in front of a junk dealer in the early hours before the employees went to work.
Si-woo Lee woke up early in the morning, cleaned up the rebar made from scrap metal, and opened the door.
“CEO?”
“Did you finish your father’s 49th job well?”
“yes. Thank you for your concern. What happened at such an early hour… I heard that Uncle Woo-cheol would come to visit.”
“Can I go inside and talk to you?”
Lee Si-woo, who looked at Moon Jae-shin’s expression, nodded.
Si-woo Lee, who came into the office after passing through the wet yard, offered me a cup of coffee.
“There is a stock limit.”
“okay. I was fined for collusion.”
An event that was widely reported recently.
It was reported that steel mills in Incheon, Dangjin, Busan and other areas had fixed the price of rebar.
Steelworks fined 11.5 billion won each.
Moon Jae-shin sip his coffee with a serious expression.
“The news is that the business is likely to be suspended. For three days, the furnace in the steel mill goes out.”
The news that the iron melting furnace was shut down was a serious story.
People who don’t work in this industry don’t know how serious it is for a furnace to go out.
“I heard it didn’t go until the business was shut down… That was bad news.”
“It may be just three days for others, but it will be a huge blow for the steel mill.”
It could have been said that ‘only 3 days of business suspension’.
However, it takes at least three days for the furnace to operate.
That meant that the steel mill had to shut down its furnaces for a week.
At Moon Jae-shin’s words, Lee Si-woo showed a serious expression.
“The stock limit will be maintained for at least a week.”
“I couldn’t go into the steel mill at all for three days. And the three days of lighting the furnace will be the same. The price suddenly jumped, so the yard of the steel mill is full of things.”
I could now understand why the unit price of 40 won suddenly plummeted within a month.
At the moment of wearing restrictions, junk dealers have no choice but to pile up things in the yard.
“What is the unit price of scrap metal?”
“It is said that it will remain fixed until the day the business suspension is lifted.”
It was self-evident that a big blow would come to the junk dealers who deal with Daesang and scrap metal.
“The problem is, if the yard of the steel mill is full of scrap metal… This means that even if the business suspension is lifted, the storage restrictions will continue for a while.”
“you’re right.”
“May I ask how much scrap metal is left in Myeongsan now?”
It was a question that could be sensitive.
Because there was no fool to tell other companies how much scrap metal there was in the yard.
However, Moon Jae-shin answered Lee Si-woo’s words without hiding.
“From the moment the CEO took out the items, he took out scrap metal. There are probably 400 tons of scrap metal left in the yard now.”
“… I heard that the amount of scrap metal that comes in a day is not a lot?”
Inventory is also a problem, but scrap metal that needs to be purchased in the future has come to be a bigger problem.
This is because, from the standpoint of Myeongsan Steel, it had to purchase scrap iron at a fair unit price in order to retain its customers.
“The amount that comes in in a week is about 400 tons.”
About 1.4 billion won.
If you couldn’t withdraw for a week, it meant that over 100 million was tied up in the yard.
Of course, a large company called Myungsan Steel had the funds to last a week.
The problem, however, was that we didn’t know how long the stock limit could last.
“Usually, once the furnace is shut down, there will be a storage limit for a month.”
“If you pile up scrap metal in the yard for just one month… That means about 600 million will be tied up.”
“Even if you have enough funds, the unit price of scrap metal will definitely drop as soon as the wearing restrictions are lifted.”
It meant that even if only 10 won fell from 600 million won, you would have to suffer a loss of 12 million won.
Perhaps this time, he did not know whether he had to make up for the loss with the gains he traded with Nuri Recycling.
“It may seem strange to others to ask for advice from the CEO, but I would like to hear the CEO’s thoughts.”
However, it is impossible to reduce the amount of scrap metal that was previously traded.
He was in a position to take the damage and receive scrap metal.
‘In a month, the amount that can benefit from the production of scrap is 60 tons. You can see a net profit of about 20 million won.’
He could not use the time to ask for scrap iron without considering the position of the Myeongsan Iron Emperor.
The moment the famous mountain iron system collapses, Nuri Recycling will have to suffer a lot of damage.
It was, of course, a one-shot disaster.
Although it was not a famous mountain iron product that would collapse to this extent, consideration had to be taken to avoid damage as much as possible.
“The fence construction will start this week. As complaints continue to come in, we cannot delay the construction of the fence.”
“okay.”
“I would like you to accept the scrap metal until the wall construction is complete. After that, we will pile it up in the yard.”
“If that happens, won’t the CEO suffer a lot of damage?”
Nuri Recycling was the largest source of items among the companies currently receiving Myeongsan Steel.
If Nuri Recycling can’t control the amount it supplies, the damage will be completely inflicted on the famous production iron.
“It’s a difficult time, shouldn’t we share the pain? If Myeongsan and Nuri, the two companies, endure together, I think this period will be able to pass without difficulty.”
I’d be lying if I said I wasn’t greedy.
Si-woo Lee, who was in a position to minimize damage, had to constantly supply scrap metal to Myeongsan Iron Works.
However, it could not be forced for the benefit of Nuri recycling.
“… thank you And I’m sorry.”
Nuri recycling had just spread its wings.
However, the opportunity to soar higher could be lost due to a major disaster.
‘The amount of scrap metal received per week is about 70 tons, and if 50 won falls in a month, the damage is about 10 million won. That much can be filled with scrap metal production ability.’
“However, I don’t know how long I will be able to endure. Perhaps there will come a time when we will have to get the advance payment again.”
“You made a big decision, and you can’t help but have that kind of support. If the representative wants it, we will give it as an advance deposit.”
The problem is that the upfront payment system is all debt.
And the problem was that it was not possible to estimate how much damage it would take in a month.
‘The unit price should have ended at just 350 won, but 10 won has gone up.’
If the damage was 40 won, I would have suffered to some extent.
However, it had to bear the damage of 50 won, which was increased by 10 won more.
“You just have to send the weight down to the fat. There are steel mills that have not been caught in this collusion, so if the CEO wants, we can connect those who deliver to local steel mills.”
As the distance traveled increases, the cost of transportation increases.
The cost of transportation from 300,000 won could go up to 500,000 won.
In that case, it would be better to wait until the wearing restrictions are lifted.
“How many cars do you think you will be able to enter per day after the suspension is lifted?”
“It would be five to seven a day. Seven units would weigh about 170 tons.”
“The number of units that can fit in is smaller than expected.”
“If we take out the cars of the junk dealers who get the code from us, it will come out like that.”
It was a pain in the ass.
Originally, when the unit price dropped by about 30 won, I was planning to build it up from then on.
However, since the unit price did not drop by 10 won, it had to be tied up in the yard.
“I want you to accept the items until the wall construction is complete.”
“All right.”
“And has your son made a decision?”
I haven’t heard of Moon Gwang-gun’s decision yet.
It’s been quite a while, but Moon Jae-shin didn’t say anything about it.
“It was not a good time to speak. sorry.”
“it’s okay.”
“I want to work with the CEO.”
“okay. So, can you tell me to go to work as soon as possible? There will be only one or two things to learn.”
“I apologize for asking the CEO even my son in this situation.”
“no. I have never worked with people my age, so I think it will be a great stimulus for me as well.”
During college, Siwoo Lee enjoyed being able to talk and play with other generations of his age.
So even more so, it felt sad that there were very few young people on this floor.
If I worked with Moon Kwang-woon, it would definitely be a positive factor for Lee Si-woo himself.
“I will tell Kwangwoon that.”
“And now it seems that the time has come for Manager Kang to come back, CEO.”
“I will also tell Director Jin about Manager Kang.”
It has already been a month since Kang Pil-joong was dispatched to Myeongsan Steel.
Lee Si-woo, who decided it was time to bring him back, asked Jae-shin Moon for his understanding.
‘Let’s take a break for a while. Anyway, the time will come someday to replenish the damage you’re taking now.’
There was no need to be discouraged when bad news came.
In the beginning, it was a job with many variables.
If there were good times, there were also bad times.
I’ve been busy for a month, so it’s better to approach it positively with the thought of taking a break.
He took a day off, but it was not enough to relieve the fatigue he had accumulated.
* * *
Siwoo Lee, who was stretching with his neck bent, checked the incoming vehicle and tilted his head.
It wasn’t a junk shop customer, and there was no one to come.
A black car came in and opened the window.
“What did you come here for?”
“Oh, uh… I came here to see if there was an iron plate… … .”
“Sorry, but the material is not sold separately.”
“okay. All right.”
A yard that looks relatively empty, leaving only a certain amount of scrap metal and sending it all made of famous iron.
It wasn’t as massive as it used to be.
The man sitting in the driver’s seat looked around the yard until the black car turned and left the yard.
‘Hmm, I must hurry up the wall construction as soon as possible.’
It could have been seen as a normal guest.
However, he could not ignore the possibility that he was a spy sent by the surrounding area.
The wall construction had to be completed quickly before complaints were made again.
And by 9 o’clock, all the employees went to work.
“The construction contractor will come to visit you today, sir.”
“I think we need to build the fence as soon as possible, Manager Park.”
“What’s going on?”
“It is said that there is a restriction on wearing. And I think Daehan Steel will be sentenced to three days of business suspension. Representative Myungsan came to me early today and told me.”
Si-woo Lee explained the current situation to Park Tae-moon as it was.
I had to explain as much as possible what the warehousing restrictions were and what the shutdown means to the steel mill.
Park Tae-moon’s expression hardened upon hearing Si-woo Lee’s explanation.
“I thought things would get better now, but the timing is not right.”
“It would be convenient if you thought of taking a break. Now, if you start piling up scrap metal, complaints will come in again. Before that, we have to finish the wall construction.”
“I will tell you to hurry up. And he said it would cost around $10 million. After all, the existing skeleton, the pipe, is still there.”
“There are also pipes in the yard, so there is no need to buy new materials. First, let’s start with Deputy Manager Choi and find out how many pipes are in stock.”
If the amount of pipe was insufficient, it was enough to make it through scrap metal production.
If you save as much as possible the cost of materials, the cost of construction will be reduced by that much.
“All right.”
Before the contractor who was responsible for the construction of the wall came to us, we had to figure out how much material we had.
Only then could the contractor decide how much material to buy.
‘You have to cut your expenses as much as possible. If it is short, it may last up to a month, if it is as long as two to three months.’
It took a lot of patience to wait for the unit price to go up.
But when it falls, it will fall endlessly. Even after the wearing restrictions were lifted, the next problem was the problem.
‘The problem is how quickly the unit price recovers.’
