China steel mills shift to new rebar standards from Sep'24

Chinese steel mills has shifted to new rebar standards, the new standards, GB 1499.1-2024 and GB 1499.2-2024, for hot-rolled plain and ribbed steel bars, were released on 25 June 2024, and will become mandatory from 25 September 2024.

To ensure a smooth transition, Zhongtian Iron and Steel Group will begin switching between the old and new standards starting July 20, 2024. Product labels and warranty certificates will be updated accordingly.

The Central Warehouse will confirm inventory rights with cargo owners on 25 July, 2024. Customers are requested to prioritize using existing old-standard products before 25 September to avoid them becoming stagnant in the warehouse. New standard products cannot be stored in the warehouse until old stock is depleted. After 25 September, the Central Warehouse will require the removal of all old-standard goods within a specific timeframe.

Moreover, the new rebar standards raise the bar for quality and performance. They introduce stricter measurement tolerances, require ladle refining for high-strength rebars to improve consistency, and enhance rebar resistance to fatigue cracking. Additionally, new sampling and testing methods are implemented to ensure these stricter requirements are met.

Outlook

The upcoming switch to new national rebar standards in China is creating a stir in warehouses, particularly in eastern China. Warehouses are urging customers to clear out old stock before the deadline to avoid potential issues. This, coupled with mills switching to new standard production from August, is putting pressure on spot market prices in eastern China, where stock levels are higher. Northern China, however, might see lesser impact due to a more balanced demand-supply situation. Overall, market participants expect some price volatility in the coming months as the market adjusts to the new standards.