- Limited orders leave market bearish
- Scrap volumes fall 35% from week 21
The Supramax segment in the Continent and Baltic Sea regions endured another trading week pressured by limited orders and abundant tonnage, leading to lower levels for week 22, which ended May 31, reports SP Global.
Atlantic Supramax scrap market
As the market remains under pressure, spot freight and time-charter rates for Supramax ships slid through the week, with scrap cargoes to the eastern Mediterranean at the low $10,000s/d.
The latest figures showed a more negative sentiment in the Continent, with 83 laden ships and 44 ballastings, S&P Global Commodities at Sea data showed.
The spread dropped again to 39 from 42 in week 2, as the same bearish trend continued.
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, continued to decline through week 22.
Platts, part of S&P Global Commodity Insights, assessed the Rotterdam-Aliaga 40,000 mt ferrous scrap TCE rates for 0.5% sulfur marine fuels at $9,910/d May 31, down 19% from week 21.
Platts also assessed the Rotterdam-Aliaga 40,000 mt ferrous scrap TCE rate for scrubber-fitted ships at $10,788/d May 31, down 18%.
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 decreasing 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 22, with CAS data showing 19 laden ships against 6 ballasting ships.
Platts assessed the 40,000 mt Rotterdam-Aliaga scrap route at $16/mt on May 31, down 7% week on week. Platts also assessed the 40,000 mt New Jersey to Aliaga trans-Atlantic scrap route at $21.75/mt May 31, down 4% week on week. Shipments of scrap cargoes and steel products through Supramax-Ultramax vessels from Northwest Europe, the Baltic Sea, and the Russian Baltic regions to Turkey and Turkish ports remained under pressure during Week 22, with 39,466 completed journeys, down 35% week on week according to CAS data.
