China’s steel market is in turmoil after new quality standards issued by the government forced traders to unload stocks, pressuring bullion prices and sending iron ore lower.

A new report by Bloomberg said the new quality standards for rebar, issued by China’s State Administration for Market Regulation last month, will go into effect on September 25.

Traders are rushing to liquidate their existing stocks that adhere to the old rules.

The summer lull, with Shanghai steel futures down 16% on the year due to weak demand, has posed a challenge for sellers, said Xu Xiangchun, a market analyst in China.

Traders are worried about the new rules and are dumping rebar stocks in the market because they are worried about stagnant sales.

The decline in rebar prices has become another factor affecting iron ore futures this year.

Weak demand caused by China’s protracted property crisis and oversupply have made the steelmaking material one of the worst-performing commodities this year.

Steel prices briefly dipped below $100 a tonne this week, having broken key levels in March and April.

Confidence in the metals market was also shaken by a lack of measures to boost the sector at China’s recent third plenary session of Communist Party leaders in Beijing, which ended with recommendations on how the economy will perform in the coming years.

Real estate policy announcements largely failed to deliver decisive action amid a slump in new home sales and construction.

Singapore iron ore futures were little changed, up 0.3% to trade at $100.90 a tonne on Wednesday, while Dalian and Shanghai Steel futures also fell.