Thailand flooded with low-quality IF steel—FTI warns of construction safety crisis
Since the collapse of the State Audit Office building following the earthquake in late March, concerns regarding the quality of construction steel have been raised.
The Federation of Thai Industries (FTI) has raised an alarm over a serious safety threat: IF (Induction Furnace) steel now dominates 55% of the rebar market in Thailand, amounting to over 1.6 million tons annually. The FTI warns that the widespread use of this substandard steel could compromise the structural safety of both public and private buildings and is urging the government to take immediate and decisive action.
Bantoon Juicharern, chairman of the FTI's Iron and Steel Industry Group, told Krungthep Turakij that recent developments in Thailand’s steel production industry have caused deep concern. Key issues identified include:
1. Shocking Post-Quake Revelations: Since the collapse of the State Audit Office building following the earthquake in late March, several concerning facts have come to light. Misunderstandings and misinformation have spread, especially regarding construction steel. The FTI aims to clarify these issues, especially about steel quality and safety, to avoid public confusion.
2. EAF vs. IF Furnaces: While the global standard for steelmaking involves Electric Arc Furnaces (EAF), which effectively remove impurities and produce high-strength steel, many Thai producers now use Induction Furnaces (IF). IF technology lacks the capability to remove harmful elements like boron, phosphorus, and sulfur effectively, making it more suitable for casting special or non-ferrous metals—not for structural steel.
3. Quality Failures from IF Steel: Recently, there have been multiple reports of IF steel failing Thai Industrial Standards (TIS). In one case, over 7,000 tons were seized due to excess boron and low tensile strength. In another, scrap contaminated with electronic waste was found. And in Phuket, IF steel snapped during bending tests, failing safety standards.
4. China’s Ban as a Precedent: China faced similar issues in the past and, in 2017, banned the use of IF for structural steel production, citing environmental and safety concerns. The country updated its national rebar standards to allow only steel made using EAF or basic oxygen furnaces.
5. Urgent Domestic Situation: Of the 2.8 million tons of rebar produced in Thailand in 2024, about 1.6 million tons came from IF technology. This raises alarm over the quality of steel embedded in buildings nationwide. The FTI stresses the need for urgent, root-cause solutions from the Ministry of Industry, which has shown commitment under Minister Akanat Promphan.
Vikrom Watcharakup, an FTI executive with over 50 years of steel industry experience, supports the Ministry’s efforts to phase out IF furnaces. He notes that while IF is suitable for high-precision alloys and casting, it is unfit for construction rebar made from general scrap due to its inability to consistently eliminate impurities, which could lead to structural failures during natural disasters or unforeseen events.
Historically, Thailand’s TIS required the use of EAF technology for rebar production. However, in 2016, the standard was revised to permit IF usage—coinciding with China’s crackdown on IF plants. As a result, some IF producers relocated to ASEAN countries, including Thailand.
Vikrom concludes that Thailand has enough EAF-based production capacity to meet domestic demand and that ending IF use will not cause steel shortages. He emphasizes that public safety must come before investment cost considerations.
