Thailand’s Industry Ministry is moving to phase out certification [1] for steel produced using Induction Furnace (IF) technology, citing persistent concerns over quality control and environmental impact. The decision follows investigations revealing that IF steel often falls short of industry standards, raising alarms among regulators and prompting government intervention.
Industry Minister Akanat Promphan announced that the ministry would reevaluate certification standards for IF-produced steel, a process known for its limited ability to remove impurities during production. IF technology also contributes to higher emissions of dust and toxic gases compared to more advanced methods.
While IF furnaces theoretically can produce high-quality steel, consistent quality remains difficult to achieve, requiring strict control over raw materials and manufacturing processes. Thailand has recognized IF-produced steel reinforcing bars under the Thai Industrial Standard (TIS) since 2016, with local producer SKY receiving certification in 2018. However, production and sales have since been suspended due to concerns over substandard material, leading authorities to seize steel stock from several manufacturers using IF technology.
Regulators argue that the inability of IF steel producers to ensure the quality of raw materials underscores the need for a shift toward more reliable production methods. Electric Arc Furnace (EAF) technology—already widely used in Thailand—offers superior impurity removal, lower emissions, and more consistent product quality.
Discussions with the Iron and Steel Industry Association and the Federation of Thai Industries suggest that Thailand’s existing EAF steel production capacity of 4.3 million tonnes significantly exceeds the national demand for steel bars, which stands at 2.8 million tonnes. This surplus reinforces the case for discontinuing IF steel production.
Under the Industrial Product Standards Act (TIS Act), the Thai Industrial Standards Committee (TISC) has the authority to revoke certification in cases where public or economic harm is at stake. Minister Akanat confirmed that he has instructed the Permanent Secretary of the Ministry of Industry, who chairs the TISC, to prioritize the review and potential revocation of IF steel standards.
In addition to industry-wide concerns, authorities continue to scrutinize Xin Ke Yuan Steel Co., Ltd. (SKY), whose factory was shut down in December 2024. Investigators have flagged multiple irregularities, including pollution-related issues such as the “red dust” problem, leading to expanded inquiries into the company’s operations. Regulatory agencies, including the Department of Special Investigation (DSI), have secured court warrants to gather evidence for possible legal action.
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[1] Thailand Plans to Bin “Dirty” Steel Production Over Quality and Pollution Fears https://www.nationthailand.com/business/manufacturing/40049035