Analysis On Supply Chain Finance To Solve The Financing Difficulty Of Iron And Steel Industrial Chain ——Take Hegang Company As An Example

In the epidemic era,due to the gradual decline of China's macroeconomic development,the internal competition of Chinese private enterprises is becoming more and more intense,especially the Chinese manufacturing industry is also facing increasingly bad internal and external development conditions.Under these circumstances,the integration and utilization of supply chain resources has become increasingly important,becoming one of the key ways for companies to improve their own strength.Whether a company can develop itself in the increasingly fierce market competition depends largely on its ability to better understand and adapt to the industry supply chain.Production and management is the development process of enterprises,reflecting the integration of logistics,information flow and capital flow.In this process,only the industry supply chain upstream and downstream suppliers,distributors and end users to maintain good communication,in order to better promote the sustainable and healthy development of enterprises.The iron and steel industry as the pillar industry of China's manufacturing industry plays an extremely important role in the country's economic development.However,after more than 10 years of prosperity and development in China's iron and steel industry,the disadvantages of long-term extensive development gradually emerged,specifically in the remaining market reduction,steel overcapacity,shrinking profit margins and financing difficulties.Especially in the past two years under the epidemic,due to import and export restrictions,many enterprises in China's iron and steel industry,inventory accumulation,difficult to recover the payment,shortage of funds and other issues.In this case,many small and medium-sized iron and steel enterprises in the middle and lower reaches of the threat of production,closure,the urgent need to obtain liquidity,until the money back.From the concept of supply chain financial services,it refers to the connection between financial institutions,core companies,logistics companies and downstream nodes of the supply chain,It is a new investment and financing service mode to meet the capital demand of financing company through multi-party cooperation.Its main purpose is to alleviate the current market competition system,small and medium-sized enterprises in the supply chain is difficult to obtain financial capital.At the same time,to a certain extent,it also solves the problem of high capital cost and difficult capital turnover of upstream and downstream companies in the steel industry.For core enterprises,the implementation of supply chain finance brings additional financial returns to core enterprises in the supply chain.Commercial banks,as borrowers of funds,can also obtain new market and profit means,so as to achieve a win-win situation.In this paper,the theory of supply chain finance is studied,the actual analysis of the supply chain financial platform established by Hegang Group is concluded that supply chain financing is the result of multi-interests demand,so as to provide corresponding suggestions for the further expansion of the iron and steel industry.