Atlantic Supramax scrap market witnesses drop due to inactivity in week 5

The supramax segment in the Continent and Baltic Sea regions endured another trading week under bearish momentum, as the quiet market led to lower levels for the week of Jan. 27 – Feb. 3.

During the week, spot rates continued to face pressure as the scrap market struggled to supply adequate cargo and remained weak due to limited opportunities.

"The market remains under pressure with weak demand and excess tonnage," a source said.

Ultimately, the market saw weak sentiment, with the push of excess tonnage putting the market under pressure.

"The overall sentiment remains weak due to limited opportunities," a shipbroker said.

The latest figures showed a more negative sentiment in the continent region, with 84 laden ships and 51 ballastings, data from S&P Global Commodities at Sea(opens in a new tab) showed.

The spread has decreased since last week, as the market is stale, and now sits at 33 on week 5.

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 decrease throughout the week.

Platts, part of S&P Global Commodity Insights, last assessed the Rotterdam-Aliaga 40,000 mt ferrous scrap TCE rates for 0.5% sulfur marine fuels at $6,701/d on Feb. 3, decreasing by 9% week on week.

Platts last assessed the Rotterdam-Aliaga 40,000 mt ferrous scrap TCE rate for scrubber-fitted ships at $8,195/d on Feb. 3, down 3% week on week.

In the North Atlantic, the 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 10 more laden Supramax ships than ballasters in Week 5, with CAS data showing 18 laden ships against 8 ballasting ships.

Platts last assessed the 40,000 mt Rotterdam-Aliaga scrap route at $14/mt on Feb. 03, showing a marginal decrease of 2%.

Platts also last assessed the 40,000 mt New Jersey to Aliaga trans-Atlantic scrap route at $20.5/mt on Feb. 03, down 3% week on week, according to data from Commodity Insights.

Completed 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 remained under pressure during week 5, with 45,184 journeys completed, less than 1% up week on week according to CAS data.