Alumina-magnesia dry materials are widely used in induction furnace linings, but they show different kinds of damage when melting different kinds of alloy steel. In this paper, the chemical composition, phase composition, and microstructure of the post-use dry materials for the working liners melting different kinds of steel were evaluated. Furthermore, the corrosion mechanism of the steel on the furnace lining materials was comprehensively analyzed. The findings reveal a significant ability of the Mn element in the molten steel to diffuse and penetrate into the refractories. Mn oxidizes to form MnO at the steel-refractory interface, and then forms a liquid phase with Al2O3. The Cr element is dissolved into corundum and spinel of the refractories, resulting in lattice defects and structural damage of the materials. TiO2 reacts with Al2O3 to form Al2TiO5, which plays a crucial role in preventing crack formation and propagation. Part of Ti4+ dissolves into magnesia-alumina (MA), densifying the materials. TiO2 also slows down the reaction between the Cr element and refractory components, further improving the corrosion resistance of the materials.