HAMBURG: The lowest price offered in the international tender to buy 200,000 tonnes of sugar from Trading Corporation of Pakistan (TCP) on Tuesday was believed to be $637.10 a tonne c&f, European traders said in initial assessments.

Offers are still being considered and no purchase has yet been reported, they said. The lowest offer was believed to have been submitted by Al Khaleej Sugar (AKS). Only one other offer in the tender was reported, from Wilmar at $647.10 a tonne c&f. Both offers were for the full 200,000 tonnes of sugar sourced from optional origins.

Prices were sharply up from the $526.80 tonne c&f Pakistan paid in its last reported sugar purchase on July 5. White sugar futures hit 4-year highs last week partly on concern about reduced production in Brazil. Traders said tender terms including shipment in bulk rather than containers for sugar packed in bags also added to transport costs.

Pakistan's government in 2020 approved sugar imports to meet a shortage and cool local prices as production fell below consumption levels. Rapid delivery is sought in the current tender with shipment of the first 25,000 to 30,000 tonnes being undertaken in only 15 days plus voyage time after the contract award. The rest should be shipped in stages with all the sugar arriving in Pakistan by Nov. 10, 2021. The sugar is sought from worldwide origins.