Posted on 22 May 2025
The ASEAN steel industry has reiterated its concern that the usage of induction furnace construction steel is hazardous and must be stopped.
At the South East Asia Iron & Steel Institute (SEAISI) Conference in Jakarta, Indonesia on Wednesday, representatives said they hope regional governments will recognise this and take the lead of the Thai government which is currently taking action against induction furnace steel usage in Thailand.
Regional electric arc furnace mills in ASEAN have been highlighting the dangers of using construction long products made in induction furnaces since 2018 (see Kallanish passim).
These facilities’ lack of adherence in meeting industry standards, as well as absence of strict enforcement and checks have led to induction furnace steel being substandard in most cases. Numerous disbanded induction furnaces, barred from operating in China in 2017 because they were producing inferior quality steel and were causing high emissions, were transplanted to the region soon after.
Other ASEAN governments have been urged to stop substandard steel product use in construction for public safety, Dato’ Lim Hong Thye, SEAISI chairman, said in his opening address at the event attended by Kallanish.
The steel industries in Indonesia, Malaysia, Philippines, Thailand and Vietnam are united in working against the usage of induction furnace steel, a Malaysian mill manager noted on the sidelines of the conference.
The Thai government has taken action against induction furnace mills and is reviewing induction furnace steel usage after the recent collapse of a building in Bangkok which was found to have used induction furnace rebar (see Kallanish passim). This has galvanised ASEAN mills to also call on their respective governments to prevent the usage of induction furnace steel to ensure public safety.
Induction furnace steel made in ASEAN faces inconsistent quality issues because it is typically fed with variable and low-quality scrap and, in order to save on electricity costs, is not refined in a ladle furnace, which would remove impurities, observed Yeoh Wee Jin, secretary general of SEAISI.
He noted that since induction furnace mill operations are typically small, they do not fall under the purview of national governments and hence, governments fail to see the full extent of the problems that induction furnace steel causes. He suggested that national governments take control over the regulation of induction furnace steel operations.
The Bangkok building collapse is proof that action needs to be taken now, said Yeoh. Governments could consider suspending all new investments involving induction furnace steel production, clamp down on illegal induction furnace steel operations and stop imports of induction furnace steel products.
Source:Kallanish
