Can someone simply explain to me the principle of eddy current/induction heating?
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It works like a transformer. In a transformer two coils (windings) are wound around a ferrite core. AC power is connected to the primary side, which creates a magnetic field in the core, and that induces a current in the secondary side winding. They are very efficient, so it is near enough that the full amount of power (VA, or volts * amps) fed into the primary is available at the secondary. The main function of a transformer is to change the voltage level (e.g. 230V to 12V) and that is dependant on the ratio of the primary windings to the secondary windings around the core.
With the inductive heater the big coil you see is the primary and creates a field in its centre. If a ferrous object is placed in the coil center, it becomes a secondary except that the current is rotating inside the metal object. Since this is effectively a short circuit, it is a high current which produces heat in the ferrous metal. That is why it is not effective on aluminum etc.
Crude description, but it should suffice.