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The National Development and Reform Commission in April ordered mills to stop producing grade-II rebar from May 1 this year. It later pushed back the deadline to the end of this year.
Hebei Steel has about 12 million tpy of rebar capacity.
“Before this, 40% of Hebei Steel’s capacity was used to produce grade-II rebar,” a company source in Tangshan said.
That will now produce grade-III (HRB400E) rebar instead, the source said.
As China’s largest steelmaker by output, Hebei Steel supplies more than half of the rebar in north China.
Another major longs producer, Jiangsu Shagang, stopped its grade-II rebar production on May 1.
China’s Hebei Steel stopped producing grade-II (HRB335) rebar at the start of June following Beijing’s directive to cease production of the low-quality product by the end of 2013.