Atlantic Supramax scrap market comes under pressure in Week 17

The Supramax segment in the Continent and Baltic Sea regions has been marked by negative sentiment as pressure due to pressure from a bearish scrap spot market and softer freight rates amid imbalances between cargoes in the market and spot tonnage supply in the week of April 22-26.

"There is a lot of tonnage built in the region and there are no scrap cargoes," a charterer said.

A ship operator said the market "is more like $15,000/d for scrap trips to the East Med and it is very quiet but owners still pushing for $17,000/d."

The latest figures showed a positive supply picture, with 83 laden ships against 47 ballasting ships, data from S&P Global Commodities at Sea showed .

The market continued to report subdued fixture activity. The 2023-built Norvic Copenhagen, open Bilbao, was fixed APS with scrap for a time-charter trip delivery to Antwerp redelivery the East Mediterranean at $18,000/d with Pangaea.

"Supramax market levels discharging to Turkey should be around mid the $15,000s/d, but Norvic Copenhagen alone was not sufficient to sustain market stability," a shipbroker said.

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, remained softer on the whole, with levels inching lower.

Platts, part of S&P Global Commodity Insights, last assessed the Rotterdam-Aliaga 40,000 mt ferrous scrap TCE rates for 0.5%S marine fuels at $15,398/d on April 26, down 3% week on week.

Platts last assessed the Rotterdam-Aliaga 40,000 mt ferrous scrap TCE rate for scrubber-fitted ships at $16,657/d on April 26, also down 4% week on week.

In the North Atlantic, US East Coast trans-Atlantic tonnage supply was balanced, with no activity reported, while spot rates remained firm.

The latest figures showed a supply balance at a spread of four more laden Supramax ships than ballasters in Week 17, with CAS data showing 15 laden ships against 11 ballasting ships.

Platts last assessed the 40,000 mt New Jersey to Aliaga trans-Atlantic scrap route at $25.25/mt on April 26, up 3% week on week.

Platts also last assessed the 40,000 mt Rotterdam-Aliaga scrap route at $20/mt on April 26, down 1%.

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 staged a recovery during Week 17, rising 95% week on week, according to CAS data.