Atlantic Supramax scrap market experiences bullish sentiment in week 24 amid tighter tonnage

The Atlantic regional Supramax market has experienced bullish sentiment in the June 10-14 week, amid tighter tonnage leading to higher price levels.

"I see the owners going crazy now with charterers trying to keep the levels steady," said one chartering broker.

"The market levels will be clearer next week," the chartering broker said, adding that this would likely indicate "where the levels really stand."

Spot freight rates increased through the week, with a similar pattern for time charter rates for Supramax ships with scrap cargoes heading to the East Mediterranean, along with most other routes.

The latest figures showed a more negative sentiment in Northwest Europe, with 101 laden ships and 37 ballasting, data from S&P Global Commodities at Sea showed.

The spread between laden and ballast vessels has been gradually increasing since week 22, as a shift in sentiment pushes the market, and now sits at 64.

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 an increase throughout the week.

Platts, part of S&P Global Commodity Insights, last assessed the Rotterdam-Aliaga 40,000 mt ferrous scrap TCE rate for 0.5% sulfur marine fuels at $14,175/d on June 17, up 46% week on week.

Platts last assessed the Rotterdam-Aliaga 40,000 mt ferrous scrap TCE rate for scrubber-fitted ships at $14,869/d on June 17, up 43% week on week.

In the North Atlantic, US East Coast trans-Atlantic tonnage supply remained balanced, with no activity reported. However, spot rates started to harden due to the overall steadily increasing momentum observed in both North Atlantic and trans-Atlantic trades.

The latest figures showed a supply balance at a spread of 9 more laden Supramax ships than ballasters in week 24, with CAS data showing 19 laden ships against 10 ballasting ships.

Platts last assessed the 40,000 mt Rotterdam-Aliaga scrap route at $18.75/mt on June 17, up 19% week on week.

Platts also last assessed the 40,000 mt New Jersey to Aliaga trans-Atlantic scrap route at $27.50/mt on June 17, up 13% week on week.

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 much less pressure during Week 24, with 78,037 in transit journeys, increasing by 97% week on week, according to CAS data.