Atlantic Supramax scrap market sees weak momentum in Week 18

The Supramax segment in the Continent and Baltic Sea regions witnessed another slow trading week, while lack of fresh demand kept the spot levels under pressure for the week of April 29-May 3.

Scrap spot rates pushed down as activity was limited and the tonnage list increased, according to a market source.

"I am hearing Supramax vessels on prompt basis pricing at $14,500/d passing Skaw," a charterer said.

While a second charterer said: "I see for Continent round voyage trips charterers rating at $13,600/d for a 57,000 dwt Dolphin type Supramax vessel, there are still too many ships in the region," a charterer said.

The latest figures showed a positive but strong supply picture, with 91 laden ships against 39 ballasting ships, data from S&P Global Commodities at Sea showed.

In the market, an 61,000 dwt Ultramax ship was heard fixed APS from A-R-A-G region to the Mediterranean Sea at $15,000/d.

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, continued to decline throughout week 18, gradually decreasing.

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 $14,885/d on May 7, down 4% week on week.

Platts last assessed the Rotterdam-Aliaga 40,000 mt ferrous scrap TCE rate for scrubber-fitted ships at $15,938/d on May 7, down 5% week on the week.

In the North Atlantic, US East Coast trans-Atlantic tonnage supply sustained balanced, with no activity reported again, while spot rates began to soften due to the overall weakening momentum observed in both North Atlantic and trans-Atlantic trades.

The latest figures showed a supply balance at a spread of seven more laden Supramax ships than ballasters in Week 18, with CAS data showing 18 laden ships against 11 ballasting ships.

Platts last assessed the 40,000 mt Rotterdam-Aliaga scrap route at $19.25/mt on May 7, down 4% week on week.

Platts also last assessed the 40,000 mt New Jersey to Aliaga trans-Atlantic scrap route at $25.25/mt on May 7, unchanged 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 stagnated during Week 18, down 4.9% week on week, according to CAS data. However, the current trading week, starting May 6 and ending May 10 (week 19), seems to offer slightly more promise.