Signals of a turning point are emerging? Today (June 12), the nonferrous metals sector led the gains in the market. As of the time of writing, it has attracted over 11.7 billion yuan in net inflows of main capital, ranking first among the 31 primary Shenwan industries in terms of fund absorption.
Among popular ETFs, the largest ETF by size tracking the same underlying index, Huabao Nonferrous ETF (159876), saw its on-exchange price surge 5.67%, reclaiming its 10-day and 20-day moving averages during the session and aiming for a fourth consecutive positive daily close.
In terms of constituent stocks, leading copper companies notably led the gains. Tongling Nonferrous Metals Group Co.,Ltd., China Molybdenum Co., Ltd., and Hailiang Co., Ltd. hit the daily 10% limit-up. Additionally, Yunnan Tin Co., Ltd., Jinduicheng Molybdenum Co., Ltd., and Chihong Zinc & Germanium Co., Ltd. also reached limit-up. As of the time of writing, a total of seven stocks have hit limit-up, creating a wave of limit-ups among constituents.
On the news front, the global construction of AI computing power is in full swing, driving strength in computing power metals, with tungsten prices experiencing a significant rebound. Tungsten hexafluoride has emerged as another hot topic in the AI sector. HBM, as a core supporting component for AI chips, continues to see rising penetration. Simultaneously, 3D NAND flash memory is rapidly iterating towards increased layer stacking and storage density. These two technological shifts are directly driving a continuous increase in tungsten hexafluoride consumption per wafer.
Meanwhile, SK Hynix is attempting to "replace tungsten with molybdenum." In the production process of 3D NAND flash memory, under the same micro-shrinking dimensions, molybdenum has lower resistance, which can effectively accelerate data read/write speeds. Furthermore, molybdenum does not require an additional barrier layer and can be filled directly, further enhancing chip storage density, although molybdenum material imposes stringent requirements on equipment and process control.
As AI development materializes in the physical world (chips, AI infrastructure, energy, and power), nonferrous metals have become indispensable key raw materials. Behind power lies copper; chip packaging cannot do without tin solder joints; chip wiring requires tungsten; and photoelectric conversion requires germanium. The price increases of minor metals this year are fundamentally driven by the dual resonance of rigid supply constraints and the expansion of emerging demand.
Looking ahead, market analysts point out that although the nonferrous metals sector faces short-term market volatility, its long-term performance remains promising, benefiting from industrial structure optimization and sustained demand growth. Based on performance trend model analysis, the nonferrous sector's current valuation is reasonable and is expected to usher in rebound opportunities. It is recommended to focus on its potential performance within the industrial chain and seize the investment window created by oversold conditions.
Nonferrous Metals Momentum is Here, "Super Cycle" Appears Unstoppable
The Huabao Nonferrous ETF (159876) and its feeder funds (Class A: 017140, Class C: 017141) track an index that comprehensively covers industries such as copper, aluminum, gold, rare earths, and lithium. This full-category coverage allows for better capture of the sector's beta trends. Simultaneously, this ETF is a margin trading and securities lending target, making it an efficient tool for a one-click allocation to the nonferrous metals sector.
As of the end of May, the latest size of Huabao Nonferrous ETF (159876) exceeded 1.5 billion yuan, making it the largest ETF among the three products in the entire market tracking the same underlying index.
Risk Warning
The Huabao Nonferrous ETF passively tracks the CSI Nonferrous Metals Index. The base date of this index is December 31, 2013, and it was published on July 13, 2015. The composition of the index's constituent stocks is adjusted according to its compilation rules, and its back-tested historical performance does not indicate its future performance. The index constituents mentioned in this article are for display purposes only. Descriptions of individual stocks do not constitute investment advice in any form, nor do they represent the holdings information or trading trends of any fund managed by the fund manager. The risk rating of this fund assessed by the fund manager is R3-Medium Risk, suitable for Balanced (C3) and above investors. The appropriateness matching opinion is subject to the sales institution. Any information appearing in this article (including but not limited to individual stocks, comments, forecasts, charts, indicators, theories, any form of expression, etc.) is for reference only. Investors must be responsible for any independent investment decisions. Furthermore, any views, analyses, or forecasts in this article do not constitute investment advice of any kind to readers, and no responsibility is taken for any direct or indirect losses arising from the use of the content herein. Fund investment carries risks. The past performance of a fund does not represent its future performance. The performance of other funds managed by the fund manager does not guarantee the performance of this fund. Fund investment must be approached with caution.
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