Maritime & Shipping, Metals & Mining Theme, Dry Freight, Ferrous

January 28, 2025

Atlantic Supramax scrap market experiences diminished activity in Week 4

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HIGHLIGHTS

Weak sentiment, uncertainty, lack of fresh cargoes lead rates

Trans-Atlantic spot freight rates down 12% on week

The Supramax segment in the Continent and Baltic Sea regions endured a trading week under bearish momentum, as a quiet market led to lower levels for the week of Jan. 20-27.

During the week, the market remained under pressure, with weak demand and excess tonnage leading to unfavorable outcomes in the Continent and Baltic Sea regions.

"The market remains sluggish, prompting owners to consider ballasting due to limited employment opportunities," a broker said.

Activity was notably slow at the beginning of the week, with little excitement observed. The spot market declined due to weak demand, resulting in owners ballasting their ships to other areas for business.

"Literally, 10 vessels are competing for one cargo," a chartering broker said, highlighting the ongoing pressure from difficulties in supplying sufficient cargo and limited opportunities.

Ultimately, the market continued to struggle, with low activity levels throughout the week due to insufficient supply of cargo, limited opportunities and weak demand.

The latest figures showed similar sentiment in the Continent, with 91 laden ships and 50 ballasting, data from S&P Global Commodities at Sea(opens in a new tab) showed.

The spread has increased since week 3, even as the market showed negative sentiment, and sat at 42 on week 4, increasing by 5 ships from the previous week.

Time-charter equivalent 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 $7,400/d Jan. 27, down 11% week over week, as Platts assessed the route at $8,326/d Jan. 20.

Platts assessed the Rotterdam-Aliaga 40,000 mt ferrous scrap TCE rate for scrubber-fitted ships at $8,481/d Jan. 27, down 9% week over week, as Platts assessed the route at $9,370/d Jan. 20, 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 12 more laden Supramax ships than ballasters in week 4, with CAS data showing 18 laden ships against 6 ballasting ships.

Platts assessed the 40,000 mt Rotterdam-Aliaga scrap route at $14.25/mt Jan. 27, down 5% week over week, as Platts assessed the route at $15/mt Jan. 20.

Platts assessed the 40,000 mt New Jersey to Aliaga trans-Atlantic scrap route at $21.25/mt Jan. 27, down 12% week over week, as Platts assessed the route at $24.25/mt Jan. 20, according to data from Commodity Insights.

Meanwhile, shipments of scrap cargoes and steel products via Supramax-Ultramax ships from Northwest Europe, the Baltic Sea and the Russian Baltic regions to Turkey and Turkish ports saw more pressure during week 4, with 81,066 journeys in transit, decreasing by 10% week over week, according to CAS data.