Atlantic Supramax scrap market moves sideways in week 16

The Supramax segment in Continental Europe and the Baltic Sea experienced a loss of momentum, with the scrap spot market witnessing softer freight rates in week 16.

"The softening was driven by factors like limited fresh cargoes, a cargo-tonnage imbalance favoring charterers, and pressure on rates, leading to a decline in key scrap routes," a shipbroker said.

Platts, part of S&P Global Commodity Insights, last assessed the 40,000 mt Rotterdam-Aliaga scrap route at $20.25/mt April 19, down 5% on the week.

In the North Atlantic, US East Coast trans-Atlantic business fundamentals persisted with tight tonnage reported and firmer employment while spot rates found some positive ground.

"The region [USEC] found positive ground amid positional tightness," a charterer said.

Platts last assessed the 40,000 mt New Jersey to Aliaga trans-Atlantic scrap route at $24.50/mt on April 19, up 11% week on week.

The latest figures showed a positive supply balance at a spread of 10 more laden Supramax ships than ballasters the week of April 15-19 (week 16), with S&P Global Commodities at Sea data showing there were 19 laden ships against nine ballasting ships.

Time Charter Equivalent rates for the Rotterdam-Aliaga 40,000 mt Ferrous Scrap route, as well as for both 0.5%S marine fuels and scrubber-fitted ships have been pressured with levels pushing down.

Platts last assessed the Rotterdam-Aliaga 40,000 mt Ferrous Scrap Time Charter Equivalent rates for 0.5%S marine fuels at $15,885/d on April 19, down by 6% week on week. For scrubber-fitted ships were assessed at $17,373/d, also down 6%.

Meanwhile, the shipment 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 displayed markedly bearish sentiment during week 16, down 77% on the week, according to CAS data. However, the current week starting April 22 (week 17) has so far appeared to offer slightly more promise.