- The Supramax segment in the Atlantic, particularly in the Continent and Baltic Sea regions, experienced another slow trading week in Week 18.
- Stagnated shipments and an increased tonnage list softened sentiment, resulting in a 4% decrease in scrap freight rates over the week.
- Despite some positive supply indicators, such as balanced tonnage supply in certain areas, spot rates remained under pressure due to limited activity and excess vessel availability.
Week 18 witnessed subdued activity in the Atlantic Supramax scrap market, with factors like stagnated shipments and an increased tonnage list contributing to weakened sentiment. As a result, scrap freight rates experienced a decline over the week, reflecting the prevailing market conditions. This article delves into the key developments and dynamics shaping the Supramax scrap market during this period.
Market Conditions and Sentiment
Limited activity and an elevated tonnage list in the Atlantic Supramax segment led to downward pressure on spot rates during Week 18. Charterers reported vessels pricing at lower levels, reflecting the subdued demand and excess vessel availability in the region.
Supply Dynamics
Supply dynamics in various regions showed mixed indicators. While some areas experienced a positive but strong supply picture, with more laden ships compared to ballasting ships, others sustained a balanced tonnage supply. However, overall, the market saw a softening in spot rates due to the prevailing weakening momentum.
Freight Rate Trends
Freight rates for key routes, such as the Rotterdam-Aliaga scrap route, witnessed declines throughout Week 18. Time charter equivalent rates for both 0.5% sulfur marine fuels and scrubber-fitted ships also decreased gradually over the week, reflecting the subdued market sentiment.
Outlook for Week 19
While Week 18 ended on a subdued note, the outlook for Week 19 offers slightly more promise. Despite the challenges observed in the previous week, there is cautious optimism regarding potential improvements in trading activity and sentiment. However, market participants remain vigilant, monitoring developments closely to adapt to evolving market conditions.
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Source: SP Global
