The Thai Industry Ministry has proposed scrapping the certification standard for steel produced using induction furnaces (IF), citing environmental and quality concerns.
Industry Minister Akanat Promphan said IF technology is less effective at removing impurities from molten steel, resulting in higher emissions of dust and toxic gases. He added that IF processes struggle to consistently meet steel quality standards.
Akanat referred to the 2016 approval by the Thai Industrial Standards Institute (TISI) that allowed IF-produced steel bars, noting that the products have repeatedly failed to meet required standards, leading to halted production and sales.
In contrast, he said Electric Arc Furnace (EAF) technology is more efficient, less polluting, and ensures more consistent quality. Thailand currently has 4.3 mln tons of EAF steel capacity, compared to domestic steel bar demand of just 2.8 mln tons in 2024, according to the Federation of Thai Industries and steel industry groups.
“Given the oversupply and quality issues, reviewing and potentially discontinuing the TISI certification for IF-based steel is a logical step,” Akanat stated.
Wiroj Rojwattanachai, Director of the Iron and Steel Institute of Thailand, noted that 14 manufacturers in the country use IF technology, most of which are Chinese-owned or joint ventures. If the TISI standard is revoked, these producers would need to fully replace their furnaces.
Wiroj warned that the required investment to upgrade to EAF could force some companies to shut down and move operations outside Thailand.