Platts: Atlantic Supramax Markets Looking Livelier

Sentiment in the Atlantic Supramax markets was slightly more bullish, as a flurry of fresh requirements for end-November and early December dates helped trim a persistently high tonnage count, Platts reports.

Platts says that the USGC was still oversupplied with ships, but tonnage could tighten if demand remained solid.

“Rates [on the USGC] should at least firm now, but maybe there’s a little bit of joy around the corner for owners,” an  unnamed operator told Platts

In the same vein, a shipbroker revealed to Platts that front-haul and trans-Atlantic rates on the USGC could soon see modest gains, provided the demand upturn did not attract large numbers of ballasters from weaker loading areas.

Already, Supramax owners were heard offering USD 14,000/d for petcoke runs for end-November dates on the USGC-to-Eastern Mediterranean route, reflecting raised confidence. But Thursday, the route was assessed at USD 11,500/d.

“The rise in demand, with inquiry into December, could be seasonal, with charterers getting cargo out before the holiday lull,” another shipbroker told Platts.

Across the Atlantic, UK-Continent and Baltic markets also were seeing an uptick in demand because of renewed buying interest from Turkey for scrap metal stems, Platts reports.

But the UK-Continent continued to have “a few too many ships,” sources told Platts, causing rates to stay stable.

The scrap metal route from UK-Continent to Turkey, basis 50,000 mt, was valued flat with the day before at USD 12,000/d. For a trip from the Baltics to Turkey with a cargo of scrap, owners of Supramax vessels would achieve USD 1,000/d less because of the longer distance covered, sources said.

The Nikolaev, Ukraine, to Alexandria, Egypt grain route, basis 25,000 mt, was valued flat on the day at USD 13.50/mt. The Black Sea also witnessed fresh grain requirements. A Supramax vessel was heard fixed at USD 11,000/d for a prompt run with grain to West Africa. But while a few vessels fixed on the Black Sea were venturing outside the Mediterranean, demand remained insufficient in cutting into the region’s considerable tonnage overhang, according to Platts.

Source: Platts