- Lack of fresh cargo throughout the week
- Scrap volumes overall were down 80% on the week
The Atlantic Supramax scrap market declined significantly in week 21 due to weak demand and a lack of fresh cargo, resulting in an 80% drop in scrap volumes. Time charter rates for Supramax ships in the East Med fell to the low-$10,000s per day. The Rotterdam-Aliaga scrap route also saw a 14-15% decrease in rates. Market sentiment remains weak, and spot rates continue to soften across the North Atlantic and trans-Atlantic trades, reports SP Global.
Atlantic Supramax scrap market
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 ballastings, 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 blasters in week 21, with CAS data showing 20 laden ships against 7 ballastings. 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.
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Source: SP Global
