Cement’s hard problem

Analysts consider cement as a losing game in the Philippines mostly because of the high electricity costs. Thus, an analyst said time will tell if Cemex Holdings Philippines’ (CHP) vertical integration into the Consunji empire will add to the group’s bottomline. CHP has been spewing red ink since 2022, and has posted losses in 13 out of the 32 quarters since 2016. Low profit margins also triggered the exit of the Lafarge-Holcim group from the country when they had to sell business units to get their merger approved. The domestic operations of Lafarge was acquired by the Aboitiz family and has not been a profit driver ever since.

Fickle nickel

Not everything is rosy in the mining sector even with the huge prospects for nickel amid the renewable energy trend that requires battery storage systems.

Leading nickel ore producer Global Ferronickel Holdings Inc. is having a difficult year after it reported first quarter mining revenues of P586.2 million, down 47.4 percent from P1.1 billion a year ago.

The culprit is the falling global prices that more than offset higher sales volumes. The average realized nickel ore price dropped to $27.42 per WMT, down 55.4 percent year-over-year from $61.48.

After the initial euphoria on nickel demand, there is now a global oversupply of the mineral particularly on Indonesia’s output of pig iron, which is used in the production of stainless steel that are mostly sold to China.

Now, FNI president Dante Bravo said that the company is keeping its focus on protecting value and optimizing operations, reviewing service contract rates, and reexamining planned capital investments.

‘Veni, vidi, vici’ Beijing

A Filipino brand that is slaying the dragon figuratively and literally is a rum brand that has a long line of success in international liquor competition.

Despite being a newcomer in the Chinese market, Tanduay is starting to gain recognition among Chinese hard drinks market in China even among the discriminating high-end market.

Marc Ngo, Tanduay International business development manager and senior brand manager, said Tanduay’s strategy to “elevate the cocktail experience of the Chinese market,” through bar visits that include an information campaign.

Rum and tequila, which are very familiar to Filipinos have not been usual bar offerings but young consumers have a penchant for cocktails that is driving demand for the two types of liquors.

“Gen Z is the main market for imported spirits like Tanduay. They like to mix it in cocktails. They also prefer low-alcohol drinks,” he said.

Tanduay achieved significant strides in mainland China in 2023, with its products making their way to shelves in cities like Beijing, Shanghai, Tianjin, Guangzhou and Zhengzhou.