Appears that they are generating a magnetic field through the coil and it is generating a strong enough field to levitate the block and induce enough heat to melt it. Appears to be aluminum.
Here's the answer in simpler terms than I could put it. It's pretty cool, actually, and I've always wanted to build one. http://en.wikipedia.org/wiki/Induction_heating
I used to work in a factory that had machines that would heat drill blanks the same way before going through a forming machine. It was something to see as you could touch the copper coil with your finger and it wouldn't burn you but if you had a steel sliver in your finger look out..........ouch
Another cool link... http://www.neon-john.com/Induction/heater.htm You can buy one complete at fluxeon.com
was aluminum...red was the oxidation burning on the surface, since it had oxgen avaliable....they would normally do this in a vaccum, or inert chamber....I do belive this is the process they use for titanium and other un-obtanium alloys....in a strong enough magnetic field aluminum will dance...was working on a starter /generator prototype 15 + years ago that had very strong rare earth magnets in the flywheel...would float a chunk of aluminum across it ....got stuck to a metal workbench when someone(not me) waved it over the bench, magnet side down....company that gave us the work was not amused and said he was luckey to have his fingers....they brougt out a big welder like device and neutralized the magnets momentarily and un -stuck it with a stern warning , not to let it happen again....