Thailand to Phase Out “Dirty Steel” Production, Eyes Greener Future for Industry

Thailand’s Ministry of Industry has announced plans to phase out the certification for steel produced using Induction Furnace (IF) technology, a decision that follows mounting concerns over both the quality of the steel and its environmental impact. This move comes after several investigations revealed that steel produced using the IF method consistently fails to meet industry standards, prompting alarm from regulators and government officials.

Industry Minister Akanat Promphan confirmed that the ministry would undertake a thorough reevaluation of the certification standards for IF-produced steel. Known for its difficulty in eliminating impurities during the manufacturing process, IF technology has also been linked to higher emissions of pollutants, including dust and toxic gases, which are more severe compared to other, more modern production methods.

Despite its theoretical potential to produce high-quality steel, IF technology has proven difficult to use consistently. Maintaining quality requires strict oversight of raw materials and the manufacturing process, something that has proven problematic in practice. Thailand had formally recognized IF-produced steel reinforcing bars under the Thai Industrial Standard (TIS) as early as 2016, and local producer SKY obtained certification for its products in 2018. However, concerns over substandard materials quickly led to a suspension of production and sales,  with authorities also seizing stocks from multiple manufacturers using IF technology.

Regulators argue that the challenges IF producers face in ensuring the quality of raw materials underscore the importance of moving toward more reliable production methods, such as Electric Arc Furnace (EAF) technology. This technology, already widely used in Thailand, is known for its superior ability to remove impurities, lower emissions, and deliver a more consistent product.

According to discussions with the Iron and Steel Industry Association and the Federation of Thai Industries, Thailand’s existing EAF production capacity of 4.3 million tonnes per year far exceeds the national demand for steel bars, which is currently around 2.8 million tonnes. This surplus of production capacity further supports 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 when public or economic harm is at stake. Minister Akanat confirmed that he has directed the Permanent Secretary of the Ministry of Industry, who also chairs the TISC, to prioritize the review and possible revocation of IF steel certification standards.

Additionally, investigations into Xin Ke Yuan Steel Co., Ltd. (SKY) are ongoing. In December 2024, the company’s factory was shut down following multiple reports of irregularities, including pollution-related issues such as the infamous “red dust” problem. Regulatory agencies, including the Department of Special Investigation (DSI), have secured court warrants to gather further evidence, potentially leading to legal action against the company.

Source: The Nation