Posted on 25 Apr 2025
Industry Minister Akanat Promphan stated that IF furnaces are inefficient at removing impurities from molten steel, resulting in higher levels of dust and toxic gas emissions. He further noted that the production process of IF furnaces cannot consistently ensure the quality of steel produced.
Referring to the Thai Industrial Standards Institute (TISI)’s 2016 approval of standard to allow IF furnace use in steel bar production, Akanat said the steel produced has repeatedly failed to meet the required standard. As a result, production and sales have been suspended.
“This reflects the fact that factories producing steel using IF furnaces are unable to maintain high-quality raw materials,” he said.
Akanat added that steel plants using Electric Arc Furnaces (EF) are more effective at removing impurities from molten steel, produce less pollution, and can more easily ensure consistent product quality.
Citing data from steel manufacturing associations and the Federation of Thai Industries (FTI), Akanat said Thailand has an EF steel production capacity of 4.3 million tonnes, while domestic demand for steel bars is only around 2.8 million tonnes in 2024.
“Therefore, a review of the Thai Industrial Standards Institute (TISI) certification for steel production using IF furnaces is feasible, paving the way for discontinuing certification of steel produced by this method,” he stated.
He added that under the Industrial Product Standards Act, if urgent action is needed to prevent harm to the public or the economy, the Industrial Product Council can deliberate and empower the Industry Minister to issue a ministerial announcement to amend or revoke TISI certification.
Wiroj Rojwattanachai, Director of the Iron and Steel Institute of Thailand, stated that there are currently 14 steel manufacturers in Thailand using induction furnaces (IF), most of which are Chinese-owned, with some operating as joint ventures with Thai partners.
He warned that if the Industry Ministry reviews and decides to abolish the TISI standard for steel produced using IF technology, these steel plants would be required to completely replace their furnaces.
Wiroj noted that such an upgrade would demand significant investment to adopt electric furnace (EF) technology. As a result, there is a possibility that these investors may be forced to shut down their operations and relocate their IF-based production facilities outside of Thailand.
He further explained that under normal circumstances, the process of revoking the TISI standard for IF-produced steel is time-consuming and complex.
It begins with establishing the rationale for amending or abolishing the standard—such as banning galvanised coating on steel sheets for safety reasons—followed by public consultations with relevant agencies such as the Department of Public Works and Town & Country Planning, which oversees construction standards.
Subsequently, a new TISI standard must be drafted, circulated to steel manufacturers, and opened for public feedback, Wiroj explained.
“However, in exceptional or emergency circumstances, the Industry Ministry may exercise ministerial authority to directly issue an order revoking the TISI standard for IF-produced steel,” he said.
FTI vice chairman Nava Chantanasurakon told Thansettakij that revoking the TISI standard for IF-produced steel would be a positive move, as it would ensure consumers receive steel products that meet quality standards at reasonable prices.
He explained that steel produced using induction furnace (IF) technology tends to be cheaper than that made with electric furnace (EF) technology, due to differences in production costs and less stringent quality control processes.
“Steel prices may rise slightly, but I believe the difference won’t be significant,” he said. “Before the use of IF furnaces, steel was a controlled product regulated by the Department of Internal Trade. If prices rise unreasonably, they can still be regulated or capped.”
Nava also expressed confidence that steel manufacturers currently using IF furnaces would not be severely impacted by the TISI standard revocation. He noted that they could adapt by introducing billet technology to roll steel bars or by converting their IF furnaces into EF systems.
From a business standpoint, Nava said, the move would promote fairness by encouraging all producers to adopt modern technology. Without this change, factories using outdated technology would gain an unfair cost advantage.
He added that IF technology is no longer accepted in several countries, including China and Malaysia, where its use and importation are banned.
Consumers, too, stand to benefit, he said, as higher-quality steel products at fair prices would improve overall safety—particularly in housing and construction.
Source:Nation Thailand
