Bloomberg cites Nev Power, chief executive officer of iron ore miner Fortescue, who said the shortage helps explain a widening gap between ore prices and the finished product. 

To blame, he said during an interview with Bloomberg Television, is the country’s effort to close old and redundant capacity. 
“Induction furnaces typically make rebar and as those furnaces are closed down, it’s created a shortage of rebar and the prices have gone up,” Power said.

Incidentally, the Chinese city of Tangshan has begun a new crackdown on mills that illegally restart production or violate overcapacity rules, according to the Reuters news service. 

Located in the Hebei province, Tangshan is a major steel production center. In 2016, it was responsible for more steel than all of the United States, according to Reuters.