SHANGHAI, Feb. 22 (SMM) -- Overseas market: According to statistics from Statistics South Africa, manganese ore output in South Africa fell by 3.1% YoY, and output in December in South Africa fell 7.5% MoM. However, South Africa’s seasonally-adjusted manganese ore output index rose by 1.2% MoM, which is compared to 12% growth and 8.7% decline in November and October 2012 respectively. Carajás plant manganese ore output posted 523,000 mt in 4Q, up 5.3% on a quarterly basis, which was due to production resumption in 4Q. Urucum manganese ore output in 4Q reported the highest level since 1Q 2006, up 7.1% compared to 3Q, which was mainly due to commission of new equipment.

Domestic market: Based on SMM survey result, imports of manganese ore in north markets were brisk than those in north market. Mainstream prices of manganese ore in north market were RMB 2/mtu higher than in south market, leaving arbitrage opportunities, which attracted traders to ship goods to north market.

Transactions at port: Traders' willingness to keep prices firm is strong, and downstream alloy producers’ willingness to keep prices firm is strong, stagnating transactions. Transactions were still made in small amounts.

Global manganese ore producers are optimist towards economic outlook in China, and have positive expectation on Chinese market. They try to hike manganese ore prices by controlling manganese ore supply. Domestic manganese ore traders are also bullish towards manganese ore market outlook, but any growth will be limited in the short term.