Atlantic Supramax scrap market witnesses weak activity in week 2

The Supramax segment in the Continent and Baltic Sea regions endured a trading week under bearish momentum, as the quiet market led to lower levels for the week of Jan. 6-13.

During the week, the market experienced sluggish inquiries, with overall sentiment remaining weak, with slow activity amid strong fundamentals.

"Sentiment is clearly weak and negative amid tonnage oversupply in the region," a charterer said.

Ultimately, the market saw low activity in the week and remained sluggish due to a lack of fresh scrap inquiries.

The latest figures showed similar sentiment in the continent region, with 93 laden ships and 48 ballasting, data from S&P Global Commodities at Sea showed.

The spread has increased since week 1, even as the market shows negative sentiment and now sits at 45 on week 2, increasing by 2 vessels from the previous week.

Time charter equivalent (TCE) rates for the Rotterdam-Aliaga 40,000 mt ferrous scrap route, along with rates for both 0.5% sulfur marine fuels and scrubber-fitted ships, showed a small decrease throughout the week.

Platts, part of S&P Global Commodity Insights, assessed the Rotterdam-Aliaga 40,000 mt ferrous scrap TCE rates for 0.5% sulfur marine fuels at $8,311/d on Jan. 13, down 13% on the week, as Platts assessed the route at $9,554/d on Jan. 6.

Platts assessed the Rotterdam-Aliaga 40,000 mt ferrous scrap TCE rate for scrubber-fitted ships at $9,384/d on Jan. 13, down 12% week on week, as Platts assessed the route at $10,625/d on Jan. 6, Commodity Insights data showed.

In the North Atlantic, US East Coast trans-Atlantic tonnage supply remained balanced, with no activity reported. However, spot rates began to decrease due to the little momentum observed in both North Atlantic and trans-Atlantic trades.

The latest figures showed a supply balance at a spread of 6 more laden Supramax ships than ballasters in Week 2, with CAS data showing 12 laden ships against 6 ballasting ships.

Platts assessed the 40,000 mt Rotterdam-Aliaga scrap route at $15/mt on Jan. 13, down 3% week on week, as Platts assessed the route at $15.5/mt, on Jan. 6.

Platts also assessed the 40,000 mt New Jersey to Aliaga trans-Atlantic scrap route at $24.5/mt on Jan. 13, marginally down 1% week on week, as Platts assessed the route at $24.75/mt on Jan. 6, according to data from Commodity Insights.

Shipments of scrap cargoes and steel products via Supramax-Ultramax vessels from Northwest Europe, the Baltic Sea, and the Russian Baltic regions to Turkey and Turkish ports saw more pressure during Week 2, with 88,319 journeys in transit, decreasing by 50% on the week, according to CAS data.