
By Benjamin Cuaresma
MANILA — The Philippines should move swiftly to prohibit the use of induction furnace (IF) technology in the production of construction-grade steel and enforce stricter standards for reinforcing bars to safeguard public safety, industry leaders said during the weekly Kapihan sa Manila Bay Forum on Wednesday.
Speaking before journalists, business leaders, and stakeholders at the forum, Ronald Magsajo, chairman of the South East Asia Iron and Steel Institute (SEAISI) and president of the ASEAN Iron and Steel Council (AISC), warned that failure to address concerns over substandard steel could leave buildings and critical infrastructure vulnerable to structural failures, particularly during earthquakes and other natural disasters.

“Proactive policy action today can prevent structural failures, protect public safety, and strengthen confidence in our infrastructure,” Magsajo said in his opening statement at the forum.
Magsajo recalled that China banned the use of induction furnace facilities for producing construction-grade steel in 2017 due to concerns over product quality and environmental impacts. He said the move resulted in the closure of an estimated 120 million to 150 million tons of IF steel-making capacity.
According to the SEAISI chief, the ASEAN Iron and Steel Council has repeatedly warned member states about the risks posed by the transfer of obsolete induction furnace equipment into Southeast Asia.
He noted that the AISC first raised the issue in 2018 and reiterated its concerns in 2021, urging governments across the region to prohibit the use of IF technology for manufacturing construction-grade reinforcing steel.
Magsajo said recent seismic events in the region have heightened concerns about the quality of steel used in buildings and infrastructure projects. He cited investigations conducted after major earthquakes in Myanmar, Thailand, and Malaysia, which, he said, reinforced longstanding concerns about the limitations of induction furnace technology.
The AISC maintains that because IF technology lacks a primary refining stage, impurities from scrap steel may remain in finished products, potentially affecting their suitability for critical structural applications.
During the Kapihan sa Manila Bay discussion, Magsajo pointed to measures already adopted by several countries in the region.
He said China has completely banned IF steel production for construction-grade applications, while Indonesia prohibits its use in public works projects. Thailand has reportedly taken similar action following a building collapse, while Singapore’s procurement framework favors steel produced through blast furnace-basic oxygen furnace (BOF) and electric arc furnace (EAF) processes. Malaysia, meanwhile, has restricted the establishment of new IF steel facilities.
In the Philippines, Magsajo noted that local governments such as San Simon, Pampanga and Sta. Maria, Bulacan have adopted ordinances restricting IF operations due to environmental concerns.
He also highlighted ongoing efforts by a technical committee composed of representatives from industry, academia, engineering groups, construction organizations, and government agencies to upgrade the Philippine National Standard for reinforcing bars.
The proposed revisions would require the manufacture and sale of seismic-grade reinforcing steel consistent with the National Structural Code of the Philippines. However, Magsajo lamented that the updated standards have yet to be fully implemented.
“Filipino lives are at stake,” he said, urging government regulators to act before another tragedy occurs.
The Kapihan sa Manila Bay forum served as a platform for industry stakeholders to press for stronger regulatory measures aimed at ensuring the safety, quality, and earthquake resilience of steel products used in the country’s construction sector.
ia/xf
