KUALA LUMPUR (Sept 8): Steel counters advanced today in line with higher steel prices, which soared as China continued to tighten steel production in the country.

Maybank analyst Yee Yen Ling said the shutdown of plants in China and expected capacity cuts explained the prolonged rally in steel stocks.

Southern Steel Bhd climbed 11 sen or 5.05% to RM2.29 in afternoon trade while Ann Joo Resources Bhd was up 9 sen or 2.47% to RM3.74.

Malaysia Steel Works (KL) Bhd (Masteel) gained as much as 9 sen or 6.82% to RM1.41 before paring gains in the afternoon to RM1.38.

Mycron Steel Bhd also ranked among the top 30 gainers in afternoon trade, rising 5.5 sen or 7.19% to 82 sen.

Chinese authorities had shut as much as half of the steel capacity in some northern cities, according to Reuters.

However, the winter production cuts are not expected until mid-November, the newswire cited Hong Kong-based Agronauts Securities analyst Helen Lau as saying.