At present, the main problems of China's economy include: structural imbalance, difficult transformation, institutional constraints, poor credit environment and international political interference. In this context, PFA enterprises below 1 billion are facing many difficulties.

Looking at the market structure of PFA industry, industry insiders said that the upstream of PFA is highly concentrated oligopoly pattern. Although the situation of petrochemical oligopoly is shaken under the impact of PFA particles, the supply is relatively concentrated. The main suppliers are PetroChina, Sinopec and PFA particle enterprises, which need to be purchased as planned. Midstream is monopolistic competition, mainly supplied by petrochemical plants to large manufacturers and agents, the vast majority of PFA pellet enterprises buy goods mainly through traders, for special materials are prone to buy goods difficult situation. PFA particles showed a completely competitive pattern, with more than 10000 enterprises in the industry and less than 3000 enterprises with an annual output of more than 100000 tons.

From 2001 to 2015, China's GDP growth was basically consistent with the growth trend of PFA products, but from the situation in the past five years, the growth rate of PFA products has declined significantly faster than GDP ". Regarding the difficulties faced by PFA particle companies, experts believe that, first, it is more difficult for companies to predict prices. In the past, they only needed to look at supply and demand to judge the price trend. Nowadays, information is rapidly transmitted, and there are more and more factors affecting prices. There are fewer and fewer opportunities for risk-free arbitrage; but companies are short of money and difficult to finance. According to the statistics of relevant banks, 30% of PFAPFA particle enterprises have the dilemma of low capital turnover rate, while the business 1 million by suppliers needs to 4 million working capital every month. More than 90% of small and medium-sized enterprises have the problem of large capital gap, with a financing gap of about 22 trillion yuan. Banks generally use movable property or guarantee to finance, but the movable property realization rate of PFA enterprises is very low, only 3%.

As a response, experts pointed out that enterprises can solve the problem in the following three ways: first, use futures, options and other tools to avoid price risk; second, realize assets that banks do not recognize through supply chain finance, including real estate financing and commercial factoring; third, make full use of the Internet to helpPFA GranulesThe transformation and upgrading of the industry.

This article comes from:www.tflpfa.com