Asean steel council warns vs massive China dumping

The ASEAN Iron and Steel Council (AISC) has expressed alarm over the region becoming a “dumping ground” for obsolete and outdated machinery and equipment from China.

“We would like to voice our concern over a recent development in the iron and steel industry in ASEAN, whereby obsolete induction furnace facilities are being moved from China into the region to produce sub-standard quality carbon steel products,” AISC said in a statement.

The group said the Chinese government strictly prohibits companies from moving the facilities and restarting the operation in the other regions of China, but no law restricts them from exporting these mothballed induction furnaces.

In the case of finished steel products, AISC said ASEAN has become a preferred destination for the export of the obsolete and unwanted equipment from China.

It said countries like Indonesia, Malaysia, Philippines and Thailand have all reported increased activities in this direction.

“Our main concern arising from the above development is that ASEAN is becoming a dumping ground for these obsolete and outdated machinery and equipment, which, because of their inherent technology limitations and constraints, could adversely impact the orderly development of the iron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,” the AISC said.

The moving of the induction furnace facilities from China into ASEAN, it said, could result in the bringing in of an obsolete technology that is not suitable for carbon steel production.

“These induction furnaces produce sub-standard quality steel products and are environmentally unfriendly as they emit uncontrolled harm- ful gases and particulates and consume higher electrical energy than electric arc furnace,” the group said.

In line with its concern, the AISC urged the respective governments in ASEAN to prohibit the import of induction furnaces from China for the purpose of producing carbon steel products.

It likewise urged the ASEAN economies to ensure imports of induction furnaces are only permissible for the purposes of foundry industry that uses induction furnace as a melting equipment to produce various types of casting products as well as in the production of ferroalloys.