As for the shock absorbing rubber originally used in some places, it can also be further improved in technology and expand its scope of application.

But I am worried that as this happens, there will be more and more use scenarios for rubber, and Datang will also have more and more demands for rubber.

Originally, after rubber planting in Southeast Asia, the price of rubber was declining.

If the rubber is still in short supply when used too much, the drop rate will be very slow.

There will even be price increases in some period of time.”

Li Yan expressed his thoughts in a little tangled way.

The first generation of steam engines are basically pure steel products. Although they look very metallic, the results are not good.

After many improvements, it became the current mass production.

However, with the increase in the application scenarios of steam engines, the demand for steam engines of various customers is also constantly changing.

Correspondingly, the requirements for steam engines are actually being improved.

After all, from scratch, people just care about whether they can buy steam engine equipment. The performance is no longer so important.

After all, at that time they didn't know what level the performance of the steam engine should reach was reasonable.

As long as they are much better than the current population, they will be very satisfied.

As for this, there is no answer.

But now it’s different. After buying a batch of steam engines, they will naturally have some opinions after using them for a while.

There will definitely be dissatisfaction with some functions accordingly.

Or I hope that the steam engine can be used in some new occasions.

In this way, we naturally hope that the new steam engine can be continuously improved on the existing basis.

To achieve these improvements, we naturally need to consider them from multiple perspectives.

Whether it is to continue to improve the sealing performance or the shock absorption performance of the steam engine, it is everyone's rigid demand while reducing the noise of the steam engine working and improving the life of the steam engine.

"According to the market balance law issued by Guanshishan Academy Business School, when the price of rubber rises, the number of people going to Nanyang to plant rubber will definitely continue to increase.

As the supply of rubber continues to increase, its price will be lowered accordingly.

Even if it rises locally, there will definitely be a balance between the price of rubber and the price you hope to accept.

Otherwise, it will continue to attract everyone to expand the scale of rubber plantations until enough rubber is produced, so that the price of rubber will fall to a level that is not very attractive to everyone."

Although Zhao Xiaoer has a bad background, he has really learned a lot in Guanshishan Academy over the years.

As a research scholar, he has obviously put in effort to pay attention to some theories in business schools at the same time.

Sure enough, after hearing his words, Li Yan had a lot of smiles on his face.

"It's no problem to say that, because the profits of rubber are very generous and the price is so high, even our family has arranged personnel to open a rubber plantation in Nanyang.

Now, I hope that the price of rubber can be higher so that our plantations can make more money.

But I hope the price of rubber can be lower so that the cost of our steam engine can be lower."

Going to Nanyang to plant rubber is something that many nobles in Chang'an City are doing.

So Li Yan didn't have any embarrassed expressions when he said it.

Of course, his so-called ambivalence is mostly joking.

After all, their rubber plantation is not very large.

If you really want to make more money in your plantation, wouldn’t it be enough to buy your own rubber at a price higher than the market price?

Anyway, within the rules, as long as Li Yan did not do anything too much, no one would care about him.

...

As the city lord in Puluo, Yuchi Huan is very familiar with all the changes here.

In addition to trade and fishing, Nanyang's main physical industry is now rubber plantations.

After so many years of development, the scale of rubber plantations in Nanyang has reached a relatively large number.

Although the time for rubber planting is different, the time for starting rubber harvesting is also different.

However, this year, Wang Dali and Anan's plantations started to harvest rubber, which has brought a huge impact to the rubber market.

Sometimes, when people judge the price of a product, they do not simply look at the current demand and supply, but consider the corresponding trend issues.

When the trend is bullish, even if the demand is not strong now, the price is still rising.

On the contrary, if the trend is bearish, even if the demand is strong, everyone will have no confidence in the price.

This trend cannot be changed in a day or two.

Yuchi Huan, who has seen a sharp decline in rubber prices, naturally does not want this trend to develop too quickly.

This not only involves the interests of various nobles such as the Yuchi family, but also the most important thing is that it also involves the industrial development of Puluo.

The price of rubber must continue to decline, but Yuchi Huan hopes that the price will drop slowly, rather than falling directly like jumping off a building.

This kind of hard-hitting price reduction is very unfavorable to the development of rubber plantations in Nanyang.

That will seriously hit everyone's confidence and have a profound impact on rubber planting, which will eventually lead to the tightening of rubber supply again.

Yuchi Huan, who realized this, wrote several letters to Chang'an City.

Now, Yuchi Gong, who received the letter from Yuchi Huan, threw out this problem while drinking with Cheng Yaojin.

"Zhijie, the entire Nanyang, your rubber plantation should be among the best.

Starting from the second half of this year, the rubber trees in your plantations should be able to start harvesting rubber.

The rubber trees in our mansion and some other noble families can harvest rubber trees starting this year.

In this way, the supply of rubber will definitely increase greatly, and the corresponding price will drop significantly.

On the contract trading shop of the Datang Trading Center, the rubber contract price has begun to fall in the past few days.

Although it is just the beginning, if everyone realizes that this year's rubber production will increase significantly compared to last year, the decline of horses will become even more powerful.

Now it may just fall by 20%, and it may be cut in half in a few months.

Although the price of rubber falls, it is a good thing for various workshops that use rubber.

But we cannot simply look at this kind of thing. Too intense price fluctuations are not a good thing for the Tang Dynasty and for ourselves."

Yuchi Gong and Cheng Yaojin can naturally speak openly.

He didn't have to worry that Cheng Yaojin would feel that he would find ways to raise the price of rubber for the sake of the Yuchi family.

"What you said is indeed a problem. At the end of last year, the housekeeper also specifically said it when he took stock of all industries.

Nanyang has been investing in plantations for many years, and this year we are finally going to start making money for our family.

But according to what you said, although you can start to earn income after harvesting rubber today, this income will be much lower than before.

But the rubber trees we first planted had relatively high planting costs. Not to mention making a lot of money in a short period of time, it would not be so easy to recover the cost of the previous investment."

Everything is difficult at the beginning. The price of a rubber tree seedling at the beginning was higher than that of both of them now.

Other corresponding various costs are also relatively high.

However, the current rubber price is very different from when they were planning to open a plantation in Nanyang.

At the beginning, although Datang's demand for rubber was not particularly strong, the source of rubber was also very small.

So the price of rubber is several times that of stainless steel, it is simply a piece of fat that anyone wants to take a bite.

Because the price of rubber is very touching and the future demand is worth looking forward to, it has attracted a large number of people to open plantations in Nanyang.

If none of these people can make money, then it will be a major blow to the development of Puluo Zhong and the enthusiasm of Jin to enter overseas.

Cheng Yaojin and Yuchi Gong were obviously aware of this problem.

So after receiving the letter from his son, Yuchi Gong took it so seriously.

Otherwise, if it was really just because of a little money, he would definitely not have lost the price like this.

After all, he was also the Duke of the Tang Dynasty. The Yuchi family has made no less money with Li Kuan over the years.

Even if the entire rubber plantation is incurred, it will not cause any damage to the Yuchi family.

At most, it would only lose the family's annual income.

"Now this problem has reached a point where it cannot be ignored. Otherwise, by the second half of the year, a large amount of rubber will come to Chang'an City, and the situation will immediately develop in a direction we don't want to see.

Zhijie, I think it is actually not difficult to solve this problem. As long as it can increase the demand for rubber in Datang."

Many people know the theory of supply and demand balance.

Even people who do not study much business theory can easily understand this truth.

Because in daily life, similar scenes happen everywhere.

For example, if the fruit harvest this year is very good, the price of the fruit will drop.

Similarly, if the harvest is bad, the selling price will rise.
To be continued...