Atlantic Supramax scrap market sluggish in week 42 amid limited cargoes

The Supramax segment in the Continent and Baltic Sea regions endured a trading week that remained weak, mainly caused by fewer cargoes, which led to subdued levels for the week of Oct. 14-18.

The market experienced sluggish activity for the week, and prices seemed to decrease. However, there was a spike, making prices firmer midweek, but they mostly fell Oct. 18.

“There was a wave of scrap which pushed [the] market up with a few operators...stuck with orders and had to pay up to perform. Ultramax ships priced around $18,000/d and Supramax at $16,000/d," a charterer said. “It will not sustain, next week it will come off as most orders are covered already.”

The weakening momentum was mostly due to limited cargo availability, against an increasing tonnage list, which led to the overall drop week on week.

The latest figures showed more negative sentiment in the Continental region, with 91 laden ships and 45 ballasting, data from S&P Global Commodities at Sea showed .

Time charter equivalent 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 a very small decrease throughout the week.

Platts, part of S&P Global Commodity Insights, assessed Oct. 21 the TCE rate for this journey and tonnage at $15,746/d for 0.5%S marine fuels, down 1% on the week, with scrubber-fitted ships at $16,359/d, 3% lower.

In the North Atlantic, stronger fundamentals for US East Coast trans-Atlantic runs supported the spot market with tonnage supply still balanced and only minimal activity reported.

The latest figures demonstrated a strong supply balance at a spread of 11 more laden Supramax ships than ballasters in Week 42, with CAS data showing 15 laden ships against four ballasting ships.

Platts assessed the 40,000-mt New Jersey-Aliaga TA scrap route at $28.75/mt Oct. 21, up 4% week on week.

Meanwhile, spot rates in the Continent and Baltic Sea regions started to fade as most orders were covered, according to market sources.

Platts assessed the 40,000-mt Rotterdam-Aliaga scrap route at $19.50/mt, down 1% on the week.

Shipments of scrap cargoes and steel products via Supramax-Ultramax vessels from Northwest Europe, the Baltic Sea and the Russian Baltic regions to Turkish ports saw much more pressure during week 42, with 39,510 mt completing voyages, a 52% drop week on week, according to CAS data.