SHANGHAI, Feb. 25 (SMM) – Overseas market: According to news from Bloomberg, South African President Jacob Zuma plans to levy mining royalty in order to curb the rising property rate.

Domestic market: At present, demand from downstream alloy producers was sluggish. Although traders tried to kept offers firm and hold back goods, they still have doubt whether the high prices for manganese ore will be sustainable. Traders were not eager to place long-term contract, and wait-and-see sentiment prevailed in the market. According to SMM sources, traders' purchasing interest for non-mainstream manganese ore was relatively strong, but risks for purchasing non-mainstream manganese ore is high considering the uncertainties of shipping, quality and acceptance of non-mainstream manganese ore. 

Transactions: According to SMM sources, transactions were relatively sluggish. Although alloy producers purchased in north China purchased manganese ore from south China due to lower prices in south, such purchasing will be only be short-term behaviors.

SMM believes that manganese ore prices will continue to hover at high level and possibility for prices to fall in the short term is small. Domestic manganese alloy and steel markets are in overcapacity, and are unlikely to reverse the overcapacity trend in the short term. Market players are expecting policies from the National People's Congress and the Chinese Political Consultative Conference (NPC&CPPCC).