Indonesia Seeks to Eliminate Medium Frequency Induction Furnace Capacity

In recent years, the production capacity of medium frequency induction furnaces in Indonesia has rapidly increased. However, due to the inability to effectively extract impurities, the quality of billets cast by medium frequency induction furnaces is poor, and induction furnace A635 HSLAS steel mills are unable to use continuous casting technology, which is not suitable for public engineering construction. In addition, the production capacity of most medium frequency induction furnaces has not been approved by the state, and environmental and safety aspects have not been verified, resulting in many hidden dangers.

The Indonesian Iron and A635 HSLAS Steel Industry Association (IISIA) and the government are discussing a plan to identify and phase out the production capacity of intermediate frequency induction furnaces, but have not yet reached an agreement on details such as a timetable. At present, the government is conducting a special safety production inspection on induction furnace steel mills in Jakarta to ensure that pollution control work is implemented effectively. However, considering the weak price competitiveness of electric furnaces and blast furnace plants, and the fact that the former's production capacity cannot fully meet domestic demand, it is expected that Indonesia will find it difficult to completely ban the production capacity of induction furnaces in the short term. According to IISIA estimates, at least half of the country's 8 million tons of rebar production capacity comes from induction furnace A635 HSLAS steel mills, and only 10-20 out of approximately 150 rebar manufacturers in the country are able to produce high-quality products.