According to the CRU report, global heavy rail demand will increase by 6% in 2023, with Southeast Asia (such as the Jakarta-Bandung high-speed railway in Indonesia) and Africa (Egypt's new capital project) becoming new hotspots. China accounts for 60% of the production capacity, but faces export barriers from the EU's "carbon border tax" (CBAM).
To avoid risks, Chinese companies are accelerating their overseas layout. For example, Pangang Group invested in a rail beam plant in Vietnam to take advantage of local labor and free trade agreements. On the other hand, India's Tata Steel acquired British Steel to obtain European high-end rail material certification.
Regionalized supply chains (such as the "China-ASEAN" or "North America-Mexico" closed loop) will replace the globalization model, and short-chain supply will become the mainstream.