Rebar steel is used for reinforcement to aid concrete because concrete does not sustain tension. Thermomechanical treat-ment is an advanced manufacturing technique for rebar production, but rusting problems emerged in the local steel industry. Raw material sampling included ingot casting (IC) and continuous casting (CC). IC samples corroded more frequently than CC samples. Spectroscopy indicated a small amount of chromium and an improper ratio of manganese to sulfur in IC samples. The improper ratio of manganese to sulfur in IC samples promoted hot cracking at grain boundaries, which resulted in inter-granular corrosion. The microstructural results of G40 (air cooled) and G60 (water cooled) showed ferrite and martensite in different proportions. The deformed ferrite in G60 indicated inclination to corrosion, and no proper stable layer of martensite was found. The percentage of martensite was not enough to retaliate against intergranular corrosion. Highly pressurized water initiated pitting corrosion due to the formation of small pits on the surface. Tensile testing revealed 10 reduction in ultimate strength, 8 reduction in yield strength, and 30 reduction in percentage of elongation of corroded samples. Environmental study revealed that the humidity level in the industry was greater than in the laboratory space. High values of SOx and NOx emission revealed the involvement of the environment in the deterioration of the product surface. © 2022 The Author(s).