The supply chain of iron and steel circulation industry keeps innovating

The supply chain finance of iron and steel circulation industry makes credit loans through the real transaction process of steel purchase and sale, which greatly alleviates the financial difficulties of related structural steel pipe manufacturers. There are three modes commonly used in supply chain finance of traditional iron and steel circulation industry, namely, accounts receivable financing, confirmed warehouse financing (future cargo right financing) and financing warehouse financing (inventory financing). Traditional steel circulation industry supply chain finance model, is a high quality steel or iron and steel trade enterprise as the core, the multiple steel upstream and downstream enterprises to participate in the “1 + N” mode, dominated by Banks, using offline mode of financing, the bank is based on the core of supply chain system of iron and steel enterprise credit support for the “N” upstream and downstream enterprises to provide financing services.

Steel electric business platform with the development of Internet technology, online and the expansion of the market share, steel electric business platform for the business flow is advantageous for the related businesses including core enterprise and upstream and downstream enterprises, bank capital providers of mild steel tube, such as real time control of the supply chain logistics service providers such as enterprise management related financing, and financing loan risk control. At present, the number of steel e-commerce trading platforms in China accounts for nearly 30% of the bulk commodity e-commerce enterprises in the country, and the online steel trading volume on the steel e-commerce platform accounts for more than 10% of the total trading volume. Steel e-commerce has become a rapidly developing e-commerce field in China. Steel electric business platform to build a financial model of supply chain in real transaction background as a prerequisite, using self-liquidating sex trade financing way, the supply chain upstream and downstream enterprises to provide comprehensive financial products and services.It injects capital flow into relevant enterprises in the steel circulation link, increases the vitality of hollow section manufacturers in the middle and lower reaches of the steel industry chain, and makes finance return to the route of the real economy.

At the same time, due to the obvious slowdown in the world economic recovery and the increasing downward pressure on the domestic economy, the receivables scale of enterprises related to the steel industry continues to rise, the recovery cycle continues to extend, the receivables default and bad debt risk significantly increased, the working capital of enterprises further intensified.According to Lange steel research center monitoring data show that since 2019, industry supply chain financial service of round steel pipe has broad market space for development objectively.