STEELMAKERS are batting for a ban on the use of induction furnace (IF) in steel manufacturing, which they said is the source of substandard products.
Ronald Magsajo, president of the Phillippine Iron and Steel Institute (PISI), told reporters on the sidelines of a forum in Manila on Wednesday that about 20 companies have been found using such induction furnace and whose products have failed standards in test buys done by PISI since 2024.
The use of IFs has been banned in China, Japan, Indonesia and Thailand after the steel they had been producing were found to be below standard, Magsajo added.
He said induction furnace, compared with electric furnace, uses a process that is unable to remove the impurities of steel scraps used in steel production, resulting in inconsistent quality.
Call for upgrade
Magsajo also called for the upgrade in the standards of steel used in buildings to eliminate products that fail the test.
However, John Steven Magboo, senior trade-industry development specialist at the Bureau of Philippine Standards of the Department of Trade and Industry (DTI), said the government does not have a policy that could ban any steel manufacturing process, as long as the end-product meets Philippine National Standards (PNS).
Roberto Cola, a member of the Metals Industry Research and Development Center Governing Council, said IF steelmaking capacity in the Philippines increased from 366,000 metric tons per year in 2017 to around 3 million metric tons to date.
Discarded IF facilities
Cola said discarded IF facilities have made their way to the Philippines following the ban in other countries that started in 2017.
“These facilities are the main source of sub-standard reinforcing steel bars and angle bars in the market,” he said.
Cola also noted the need to issue technical regulations and to implement a process audit of companies engaged in steel manufacturing.
In a separate letter to DTI Assistant Secretary Agaton Uvero dated April 7, 2025, Magsajo said PISI noted the continued high instances of non-conformity of samples purchased.
This, he said, leads the group “to conclude that there are larger quantities of substandard products being sold in the market today.”
Avert disaster
“We must learn from the recent tragedy that has hit our Asean neighbors and take the necessary steps to guarantee no such disaster occurs in our country,” Magsajo said in his letter.
PISI provided DTI data on the results of its test buys showing random steel products that fail the inspection done by DTI-accredited companies.
“We believe the data provided can help the DTI-Fair Trade Group in its efforts at ensuring that only certified products are made available to the consuming public,” Magsajo said. “We humbly request that the DTI Fair Trade Group continue its market enforcement activities and, as necessary, subject violators to the maximum penalties allowed by law against the offending parties.”
