Atlantic Supramax scrap market sees fundamentals support spot rates in week 9

The Supramax segment in the Continent and Baltic Sea regions lacked momentum in week 9 but remained at similar levels to the preceding week as tighter tonnage availability supported spot rates.

At the start of the week, which ran from Feb. 24 to March 2, the market remained slow, but the spot rated held firm.

"Clearly, the lack of available tonnage supported the spot market amid a steady flow of booked cargoes, but in the following weeks, I anticipate a stronger build of tonnage and a less robust cargo flow," a shipbroker said.

Later in the week, the market held its ground with fresh inquiries keeping spot rates firm, with any changes being small decreases.

Ultimately, the market ended the week with slightly steady notes, with the slower market leading to unchanged levels.

The latest figures showed a more negative sentiment in the continent region, with 76 laden ships and 57 ballasting, data from S&P Global Commodities at Sea showed.

The spread has decreased since last week, and now sits at 19 on week 9.

Time charter equivalent (TCE) 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 marginal decrease throughout the week.

Platts, part of S&P Global Commodity Insights, last assessed the route's TCE rates for 0.5%S marine fuels at $12,252/d on March 3, marginally down by 1% week over week.

Platts last assessed the route's TCE rate for scrubber-fitted ships at $13,045/d, also 1% lower.

In the North Atlantic, US East Coast trans-Atlantic tonnage supply remained balanced, with no activity reported. However, spot rates began to slow down due to a lack of momentum observed in both North Atlantic and TA trades.

The latest figures showed a supply balance at a spread of 11 more laden Supramax ships than ballasters in week 9, with CAS data showing 18 laden ships against seven ballasting ships.

Meanwhile, Platts last assessed the 40,000-mt Rotterdam-Aliaga scrap route at $17/mt on March 3, showing a tick down by 1%.

Platts also last assessed the 40,000-mt New Jersey to Aliaga trans-Atlantic scrap route at $21.5/mt, falling 2% week over week.

Meanwhile, 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 saw much less pressure during Week 9, with 199,978 journeys in transit, increasing by 141% week over week according to CAS data.