Atlantic Supramax scrap market falls in week 21 as pressure builds on thin demand

The Supramax segment in the Continent and Baltic Sea regions endured a bearish trading week May 20-24 as a lack of fresh scrap cargoes pressured the market.

"Scrap is in a freefall," according to a shipbroker.

Market levels dropped through the week, ending on a flat note with time charter rates for Supramax ships with scrap cargoes to the East Med seen at low-$10,000s/d.

A ship operator said during the week that the "sentiment remains weak, and the market is under pressure while spot rates continue to soften."

The latest figures showed a similar picture in the continent region as last week, with 85 laden ships and 43 ballasting, data from S&P Global Commodities at Sea showed.

The spread narrowed to 42 from last week's 46, even though the last few weeks have shown a similar negative trend.

Time charter equivalent rates for the Rotterdam-Aliaga 40,000 mt ferrous scrap route, along with rates for both 0.5% sulfur marine fuel and scrubber-fitted ships, continued to decline throughout week 21.

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 $10,262/d on May 30, down 14% week on week.

Platts last assessed the Rotterdam-Aliaga 40,000 mt ferrous scrap TCE rate for scrubber-fitted ships at $11,079/d on May 30, down 15% week on week, Commodity Insights data showed.

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

The latest figures showed a supply balance at a spread of 13 more laden Supramax ships than ballasters in week 21, with CAS data showing 20 laden ships against 7 ballasting.

Platts last assessed the 40,000 mt Rotterdam-Aliaga scrap route at $16.25/mt on May 30, down 6% week on week. Platts also assessed the 40,000 mt New Jersey to Aliaga trans-Atlantic scrap route at $21.75/mt on May 30, down 6% week on week, according to data from Commodity Insights.

Shipments of scrap cargoes and steel products via Supramax-Ultramax ships from Northwest Europe, the Baltic Sea and the Russian Baltic regions to Turkey remained under pressure during week 21, down 80% week on week, according to CAS data.