Group: PH, Asean could become swamp for China’s obsolete steel production facilities

The Asean Iron and Steel Council (AISC) wants governments in the region to prohibit the import of China-made “obsolete” induction furnaces, which are allegedly being used to produce substandard steel.

In a statement, the council sought for government action after these facilities banned by China itself found their way to some parts of the Association of Southeast Asian Nations (Asean). It said there was no law in China that restricted such export.

AISC, which includes the Philippine Iron and Steel Institute, said these induction facilities generally have no capability of removing harmful elements in liquid steel, thus resulting in the inconsistent quality of steel products produced.

According to the group, these products pose safety hazards since they are used in the construction industry.

“Just as in the case of finished steel products, Asean has also become a preferred destination for the export of the obsolete and unwanted equipment from China. Countries like Indonesia, Malaysia, Philippines and Thailand have all reported increased activities in this direction,” the group said.

“Our main concern arising from the above development is that Asean could become a dumping ground for these obsolete and outdated machinery and equipment, which, because of their inherent technology limitations and constraints, could adversely impact the orderly development of the iron and steel industry in the region,” AISC added.