The non-ferrous metals sector continued its strong performance today (February 25). The sector's popular ETF—Non-ferrous Metals ETF (159876)—rose 2.14% during the session after a 3.18% surge yesterday, reclaiming its 20-day moving average.
Funds are actively flowing in. As of the latest update, the Non-ferrous Metals ETF (159876) saw a net subscription of 7.8 million units, following a net inflow of 7.01 million yuan yesterday.
Among the constituent stocks, rare earth leaders performed notably. China Northern Rare Earth Group jumped over 5%, Shenghe Resources Holding gained more than 4%, while China Rare Earth and China Nonferrous Metal rose over 3% each. Additionally, Yunnan Chihong Zinc & Germanium hit the daily limit-up, with Huaxi Nonferrous Metals and Chihong Zinc & Germanium advancing over 6%, leading the index's strong performance.
Key drivers supporting price increases across segments include: 1. For strategic minor metals, former President Trump aims to use AI for pricing critical minerals, initially focusing on germanium, gallium, antimony, and tungsten. The move seeks to attract allies and protect domestic mining firms through transparent pricing. 2. Regarding copper, Citi holds a short-term bullish view, forecasting copper prices to reach $14,000 per tonne within the next three months. Its base-case average price projection for 2026 remains $13,000 per tonne. 3. In gold, UBS Group expects gold prices to hit $6,200 per ounce in the coming months, as key drivers behind its strong performance over the past year persist.
Huafu Securities notes that for precious metals, short-term Federal Reserve rate cut expectations remain volatile, but the overall trend favors upside. Medium to long term, amid global tariff policies and geopolitical uncertainties, safe-haven and stagflation trades remain central to gold trading, with long-term value intact. For industrial metals, deeper Fed rate cuts are expected to boost investment and consumption, while creating room for domestic monetary policy. Overseas fiscal expansion may fuel inflationary rebounds, supporting higher copper prices. Strong demand from new energy sectors is likely to widen supply-demand gaps, maintaining a positive outlook for copper. Domestic production caps and energy constraints continue to cause disruptions, while new energy demand stays robust, keeping aluminum prices in a tight balance with upward bias.
Looking ahead, BOC Securities points out that as markets enter the second phase of a bull market—driven by earnings growth—in 2026, domestic reflation narratives are expected to strengthen under "anti-involution" and domestic demand expansion policies. The strong cyclical nature of non-ferrous metals may emerge, with financial attributes and industry trends offering revaluation opportunities. The sector is poised for both profit growth and valuation expansion in 2026.
Non-ferrous Metals ETF Huabao (159876) and its feeder funds (Class A: 017140, Class C: 017141) track a benchmark index covering copper, aluminum, gold, rare earths, lithium, and other subsectors. The ETF spans precious metals (safe-haven), strategic metals (growth), and industrial metals (recovery) across different cycles, offering diversified exposure to capture sector beta. It is also a margin trading security, providing an efficient tool for investing in the non-ferrous metals sector.
Note: Recent market volatility may be elevated. Short-term gains or losses do not indicate future performance. Investors should invest rationally based on their financial situation and risk tolerance, paying close attention to position and risk management.
MACD golden cross signals have formed, with several stocks showing notable gains.
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