Pakistan May Raise Quantity in Sugar Tenders, Invite Fresh Bids

Pakistan’s Trading Corp. may increase the quantity of refined sugar in two import tenders of 200,000 metric tons each, scheduled to be opened this month, or invite fresh bids to help meet a target aimed at reducing prices.

“If prices fall, I may increase the quantity in the two tenders and if prices don’t fall, I would issue new tenders for maximum quantity,” S. Anjum Bashir, chairman of the Trading Corporation of Pakistan, said in a telephone interview from Karachi today.

Pakistan will meet its import target of 1.2 million tons by the end of June to overcome a shortage and control prices, Bashir said. It has finalized contracts for 675,000 tons, while tenders for two lots of 200,000 tons each are scheduled to open on May 22 and May 29.

White Sugar for August delivery pared a decline of as much as 0.9 percent and was little changed at $480.70 a metric ton on London’s Liffe exchange today.

On May 15, Trading Corp. bought 100,000 tons from China’s Yunnan Coal & Chemical Industry Group Co. for $488 a ton.

“We asked Yunnan if they could supply 200,000 tons but they couldn’t so we awarded the tender for 100,000 tons,” Bashir said.

source: businessweek