Atlantic Supramax Scrap Market Under Pressure In Week 17

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  • The Supramax segment in the Continent and Baltic Sea regions experienced negative sentiment due to pressure from a bearish scrap spot market and softer freight rates.
  • Fundamental imbalances persisted between market cargoes and spot tonnage supply.

Fixture activity remained subdued, with limited demand for scrap trips to the East Mediterranean. Despite shipowners pushing for higher rates, the market remained quiet, with few transactions occurring.

Positive Supply Picture

Data from S&P Global Commodities at Sea revealed a positive supply picture, with 83 laden ships against 47 ballasting ships. However, this surplus of tonnage did not translate into increased demand or higher rates.

Softening Time Charter Equivalent (TCE) Rates

TCE rates for the Rotterdam-Aliaga 40,000 mt ferrous scrap route, as well as for both 0.5%S marine fuels and scrubber-fitted ships, experienced softening during the week. Rates for the ferrous scrap route were down 3% week on week.

Balanced Tonnage Supply in North Atlantic

Tonnage supply in the North Atlantic was balanced, with no significant activity reported. Spot rates remained firm, with a slight increase in the New Jersey to Aliaga trans-Atlantic scrap route.

Recovery in Scrap Shipments

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 witnessed a notable recovery during Week 17, rising by 95% week on week, according to CAS data.

In Week 17, the Atlantic Supramax scrap market faced pressure amid ongoing challenges and imbalances, with rates softening and fixture activity remaining subdued.

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Source: SPGlobal