The Huabao Nonferrous Metals ETF (159876) saw its intraday price rise over 1.1% today (April 10), currently up 0.09%, with trading volume exceeding 52 million yuan, indicating strong market activity. From a technical perspective, the ETF appears to be forming a pattern of gradual upward movement since hitting a low on March 23.
Among its components, leading lithium companies showed notable performance. Ganfeng Lithium and Tianqi Lithium both gained over 4%, while Shenghua Lithium and Yongxing Materials advanced more than 3%. Additionally, Boway Alloy and Yahua Group rose over 4%, with cobalt leaders Huayou Cobalt and Tengyuan Co. climbing more than 3%, ranking among the top gainers.
Market news indicates that four lithium mines in Yichun may suspend operations in May for license renewal. Industry experts suggest these mines might exhaust their annual production quotas first, with the license update process potentially taking considerable time based on precedents like CATL's Jianxiawo and Guoxuan High-tech's Shuinan mines. This could further tighten lithium supply.
Internationally, Zimbabwe's ban on lithium concentrate exports has lasted over a month since March. Recent announcements about conditions for lifting the ban indicate ongoing negotiations regarding the resumption of exports.
A Fangzheng Securities report notes that Zimbabwe's export restrictions aim to develop downstream lithium processing locally, retaining more economic benefits within the country. However, this policy may increase development costs, extend investment recovery periods, and create uncertainty in lithium carbonate supply. With China's lithium salt inventories already at low levels, any delay in Zimbabwe's export resumption could impact second-quarter supplies.
Huayuan Securities added that against a backdrop of stronger-than-expected lithium battery demand, lithium salt inventories are declining while mining supply faces repeated disruptions. This has reversed the supply-demand balance for lithium carbonate, initiating a price uptrend that may enhance profitability for lithium sector companies. Given growing uncertainties in overseas supply, attention is turning to domestic lithium producers with high self-sufficiency rates and reasonable valuations.
The Huabao Nonferrous Metals ETF (159876) and its linked funds (Class A: 017140, Class C: 017141) cover various subsectors including copper, aluminum, gold, rare earths, and lithium, spanning defensive, growth, and cyclical segments. This diversified exposure allows investors to capture broader sector trends. The ETF is also eligible for margin trading, serving as an efficient tool for accessing the nonferrous metals industry.
By the end of March, the Huabao Nonferrous Metals ETF held 1.891 billion yuan in assets, with average daily trading exceeding 100 million yuan over the past month, ranking first in both size and liquidity among three ETFs tracking the same index.
Note: The ETF was previously named the Nonferrous Metals Leaders ETF.
Comments