China’s Cheap Steelmaking Machines Pose Safety Concerns in Southeast Asia

China’s Cheap Steelmaking Machines Pose Safety Concerns in Southeast Asia
A worker installs steel rods at a construction site in Paranaque city, metro Manila, Philippines, on May 29, 2018. Romeo Ranoco/Reuters
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MANILA—China banned induction furnaces last year in a crackdown on polluting producers of low-quality steel, but the equipment has made its way to parts of Southeast Asia, putting pressure on domestic steelmakers and fueling safety and environmental concerns.

The Philippines and Indonesia have seen an influx of these furnaces since China prohibited their use for steelmaking in June 2017, eliminating 154 million tons of capacity—or just over the combined output of the United States and Germany.