Iron and steel group urges ASEAN to ban ‘obsolete’ furnaces from China

The ASEAN Iron and Steel Council (AISC) called on Southeast Asian governments to prohibit the entry of “obsolete” induction furnace facilities from China to their countries.

"We would like to voice our concern over a recent development in the iron and steel industry in ASEAN, whereby obsolete induction furnace facilities are being moved from China into the region to produce sub-standard quality carbon steel products,” the AISC said in a statement.

ASEAN is the Association of Southeast Asian Nations, which counts as members Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam.

In light of the “adverse impact” on the iron and steel industry arising from the moving of “obsolete” induction furnace facilities from China into ASEAN countries, the AISC urged the respective governments in ASEAN to prohibit the import of induction furnaces from China for the purpose of producing carbon steel products.

The AISC said there were an estimated 600 induction furnace producers in China with a combined capacity of around 120 million tons, primarily sub-standard steel products.

Since 2002, the Chinese government already raised concern about the existence of such establishments— many of which were operating illegally in various parts of the China.

“The main drawback of the induction furnace facilities is that there is generally no process of removing the harmful elements in the liquid steel thus resulting in inconsistent quality of steel products produced," the council said.

“This results in a safety hazard since these steel products are used in the construction of buildings and infrastructures. The operation of these induction furnaces also harm their workers and surrounding communities since they generally do not have dust and emissions collecting equipment,” it said.

Moving induction furnace facilities from China into the region could result in the transfer of an “obsolete technology” not suitable for carbon steel production, the AISC noted.

“These induction furnaces produce sub-standard quality steel products and are environmentally unfriendly as they emit uncontrolled harmful gases and particulates and consume higher electrical energy than electric arc furnace,” it said. —Ted Cordero/VDS, GMA News