Backdrop & Context
Thailand's steel industry, a key pillar of its constructionand manufacturing sectors, is undergoing a pivotal transformation. Amid growinginternational pressure to curb industrial pollution and moderniseinfrastructure, the government is taking bold action against the continued useof induction furnace technology. First introduced into the Thai market in 2016,IF steel was certified under the Thai Industrial Standard, offering a low-costsolution for rapid production. However, by 2025, mounting environmentalconcerns and quality lapses have led to a reassessment of this once-promisingmethod.
Industry Minister Akanat Promphan remarked at a pressbriefing, “The government must prioritise clean technologies that ensure publicsafety and environmental health. Outdated systems like IF do not align with oursustainable industrial goals.”
Who’s Involved?
Leading the move is the Ministry of Industry, with AkanatPromphan advocating for regulatory reform and environmental stewardship. TheIron and Steel Industry Association and the Federation of ThaiIndustries—representing manufacturers, exporters, and logistics firms, havevoiced their approval, citing the need for higher quality and safety standards.Prominent steel producer SKY, certified in 2018 for IF steel, is among thosewhose operations have been suspended. Their products were impounded after testsshowed they did not meet national safety benchmarks, revealing widespreadweaknesses in the IF production chain.
An anonymous industry insider said, “There were alwaysconcerns about IF steel, but the pressure to supply fast kept it afloat. Thegovernment’s move will force everyone to clean up their act or shut down.”
The Flawed IF Process
Induction furnaces work by melting scrap steel usingelectromagnetic induction, but the technology lacks effective degassing andimpurity filtration mechanisms. Being an open-system process, it exposes themolten steel to air, leading to oxidisation and the release of noxious gasessuch as CO₂, SO₂, and nitrogen oxides. Themethod is highly sensitive to the quality of input materials. Using lower-gradescrap results in weak, brittle, or contaminated steel, unfit for criticalstructures like bridges and buildings.
Experts note that achieving consistent quality using IFrequires extraordinary quality control and expensive raw materialpre-treatment, which many manufacturers in Thailand have failed to maintain.
Comparing IF with Modern Methods
Electric arc furnace technology, in stark contrast, is aclosed-loop process using high-voltage electric arcs to melt metal. It allowsfor better control over temperature and chemical composition, thus improvingthe structural integrity of the final steel product. The EAF method alsosignificantly reduces environmental pollution, as modern systems includeair-filtration units and emission scrubbing technology.
Dr. Sarun Vejprasert, a metallurgical engineer fromChulalongkorn University, explained, “EAF is not only cleaner, it’s smarter. Itenables us to recycle scrap more efficiently, reduce CO₂ emissions, and meetinternational safety standards.”
Environmental & Public Health Concerns
The environmental damage caused by IF plants has beensevere, especially in industrial provinces like Rayong and Chonburi. Theseplants release fine particulate matter (PM2.5), heavy metals like lead andcadmium, and toxic gases into the atmosphere. Workers are exposed to harmfulfumes, while nearby communities suffer increased rates of respiratory illnessand cancer.
An air quality survey conducted in 2024 by the PollutionControl Department showed PM2.5 levels around IF plants exceeding the WorldHealth Organization limit by more than 80%. Minister Promphan stated, “Thesteel industry cannot grow at the cost of our people’s lungs. It’s time weprioritise clean air and safe infrastructure.”
Surplus Capacity Supports the Shift
Data from the Federation of Thai Industries indicates thatThailand’s EAF production stands at 4.3 million metric tons annually—well abovethe national consumption of 2.8 million metric tons. This surplus means thecountry can immediately phase out IF production without risking supplyshortages.
The EAF sector also has the capacity to absorb displacedworkers and investment from IF producers, facilitating a smoother transition.Manufacturers have already begun repurposing facilities and retraining staff.“This is a rare chance to not just regulate but restructure the industry forresilience and long-term growth,” noted Suwit Narongchai, President of the ThaiSteel Association.
Legal Mechanism for Revocation
Thailand’s Industrial Product Standards Act (TIS Act)provides the legal basis for immediate action in cases of public or economicharm. Under Section 24 of the Act, the Thai Industrial Standards Committee canpropose revocation of outdated standards. The Ministry of Industry will thenissue a formal ministerial directive to cancel the certification of IF-basedsteel.
Akanat Promphan confirmed that consultations with all majorstakeholders have concluded. “We are ready to act. The revocation notice isbeing drafted and will be published by June 2025,” he announced.
Key Takeaways:
