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.