The Hindu Business Line : 6 bidders for PEC wheat import tender

Highest & lowest
JK International offer of 2.5 lt includes 65,000 tonnes at the lowest quote of $395.88 a tonne for delivery at Mundra port.
The highest offer price of $483 a tonne for 40,000 tonnes at Tuticorin is from Starcom.

Our Bureau

New Delhi, Dec. 3 PEC Ltd’s 3.5 lakh tonne (lt) wheat import tender has attracted bids from six suppliers, who have offered a total quantity of 6.30 lt at prices ranging from $395.88 to $483 a tonne, cost & freight (c&f).

MOST AGGRESSIVE

The most aggressive bidder has been JK International Pty Ltd of Australia. The Brisbane-headquartered commodity trader has expressed an interest to sell up to 2.5 lt in PEC’s tender, which was floated on November 26 and opened here on Monday.

The 2.5 lt included 65,000 tonnes at the lowest quote of $395.88 a tonne for delivery at Mundra port. JK also offered 45,000 tonnes for $398.97 a tonne at Kandla, 35,000 tonnes for $401.94 a tonne at Mumbai and 40,000 tonnes for $418.95 a tonne at Tuticorin.

Higher quotes

Others who bid at the tender were the US-based Cargill, Glencore International AG of Switzerland, Alfred C. Toepfer of Germany, Concordia Agritrading (a subsidiary of the Dutch trading house Nidera) and Starcom Resources of Singapore. Cargill is said to have offered up to 1.1 lt, Glencore one lt, Toepfer and Concordia 65,000 tonnes each, and Starcom 40,000 tonnes.

But their quotes were higher compared with JK International. Concordia’s 65,000 tonne offer at Mundra was for $412.11 a tonne, while the corresponding bids of Cargill, Glencore and Toepfer were $433.2, $433.5 and $442.51 a tonne. Cargill and Toepfer also offered 45,000 tonnes each at Kandla for $433.7 and $450.40 a tonne, respectively, while Glencore bid for 90,000 tonnes at Kakinada for $451 a tonne. Toepfer further bid 40,000 tonnes each at Chennai and Visakhapatnam for $448.5 and $463.90 a tonne, respectively.

Highest

The higher offer of $483 a tonne for 40,000 tonnes at Tuticorin came from Starcom. The current price bids are valid till December 8, with PEC seeking delivery by March 10 next. The latest tender is the fourth one to be floated by a state-run company on behalf of the Centre during 2007-08.

Earlier tenders

The first two tenders by STC, floated on July 27 and August 30, resulted in imports of 5.11 lt and 7.95 lt being contracted at weighted average prices of $ 325.59 and 389.45 a tonne. In MMTC’s tender of November 12, 3.42 lt of imports were finalised for $ 400.19 a tonne. Going by the bids submitted in the latest PEC tender, the final weighted average price should work out in the range of $ 410 to $ 420 a tonne.

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