The Global Steel Rail Market Outlook to 2027

(MENAFNEditorial) LONDON, Nov. 29, 2017 (GLOBE NEWSWIRE) -- Infrastructure plays a vital role in the economic development of a country. Most matured economies allocate a significant portion of their annual budget for refurbishing and upgrading infrastructure. Similarly, developing countries are also racing for building up their infrastructure by funding through fiscal coffers and lending. Commodity Inside believes that due to growing population and urbanisation there is significant pressure on infrastructure and multi-billion infrastructure projects have been announced across the world. The US government plans to spend around $1 trillion on infrastructure over the next ten years.

Railways is a vital component of the infrastructure industry and currently going through significant overhauls across the world. Over the past few years, we saw some rail producers complaining about the limited growth and cost pressures and started to offload their rail units. Longs steel producers usually prefer to produce sections and other construction products due to better demand fundamentals. Most of the recently added rail capacity was in China due to domestic demand and non-market forces. Iran also entered the rail market with Esfahan Steel added 400,000 tonnes/year rail capacity to its portfolio in 2016.

Indeed, limited demand growth has been one of the culprits deterring new entrants or new capacity additions. Demand and supply also remained range-bound over the past few years. However, we have recently identified some growth pockets across the world which are going to underpin demand over the next decade. High-speed rail, electrification and new rails projects would be some of the fundamental drivers increasing demand for rails.

The Chinese initiative to improve connectivity through One Belt One Road (OBOR) would have a phenomenal impact on the rail industry. A large number of rail projects are planned under the OBOR initiative across Asia and Africa. The aim is to connect China with major trading regions including Europe. The train transport has already started between China and Europe where first Chinese freight train arrived in the UK in January 2017 while the first ever direct train from London to China full of goods completed its journey in April 2017. More recently, in November 2017, a train with 41 containers reached Xi'an Port in China from Finland's Kouvola. It was the first Central European train between China and the Nordic countries. The cargo included electromechanical equipment and various commodities. Dozens of European cities have now direct rail links with China.

REPORT DETAILS

is a valuable resource necessary for examining the global rail tracks and infrastructure market. We have employed a very sophisticated and robust approach to assessing the rail market by taking into account various demand and supply dynamics. This content-rich report covers the following key aspects:

provides you with the following in-depth analysis:

To learn more about 'The Global Aluminium Market Outlook to 2027' report please visit

About Commodity Inside

Commodity Inside () is an independent privately owned company provides market research analysis and consulting to the commodities market. We specialise in glass, metal, paper and plastic industries and their end-use sectors such as packaging, automotive and construction. We publish a range of thorough and highly analytical market analysis reports. Our consultancy arm offers expertise to companies in these markets and helping them in making the right decisions.

For further information about this report and additional research, please contact:
Fernando Barbosa
Business Development Executive
Email:
Tel: +44 (0) 207 14 00002

MENAFN2911201700703653ID1096163504