Markets consolidated today (May 28), with the three major A-share indices all closing in the negative. The Metals ETF Huabao (159876), which aggregates leading companies in the non-ferrous metals sector, saw its on-exchange price drop by as much as 3.46% intraday and is currently down 2.79%. However, capital remains undeterred by market volatility and is actively positioning in the non-ferrous metals sector. Data shows the ETF recorded a real-time net subscription of 23.4 million units.
Among its constituent stocks, GRINM Advanced Materials led gains, rising over 4%, followed by Western Superconducting Technologies and Chujiang New Materials, both up more than 3%. GAONA AEROSPACE & MATERIAL, China Rare Earth, and China Northern Rare Earth also posted gains. On the downside, Guocheng Mining fell over 6%, Zhongjin Gold declined more than 5%, while China Molybdenum, Aluminum Corporation of China, and Shandong Gold International dropped over 4%, weighing on the index performance.
Looking at specific segments, supply disruptions coupled with demand support are bolstering the price floor for non-ferrous metals: 1. In the aluminum sector, U.S. commercial solar customers are facing soaring installation costs due to rising prices for aluminum components, driven by supply disruptions in the Middle East. Aluminum is a crucial material for solar mounting components, widely used in rails, clamps, and frames. Analysts from BMI, a Fitch Solutions unit, noted that costs for aluminum-related installation and structural components account for approximately 9% to 10% of total solar project costs. Previously, Guinea, the world's largest bauxite producer, planned to implement bauxite export controls next month to boost aluminum prices. Guinea accounts for over one-third of global bauxite production, and its policy shifts directly intensify market concerns over raw material supply contraction. From an industry logic perspective, companies with high ore self-sufficiency rates or diversified overseas layouts are poised to benefit first. Aluminum industry leaders with significant resource advantages, such as Aluminum Corporation of China, Yunnan Aluminium, and Tianshan Aluminum, are expected to gain an upper hand in this round of raw material price negotiations. 2. In the lithium sector, lithium carbonate prices have shown a volatile upward trend this year, with cumulative gains exceeding 60% from the year's start to the peak. On May 27, the Guangzhou Futures Exchange's lithium carbonate main contract closed at 173,000 yuan per ton. Although this represents a pullback from recent highs, the year-to-date increase remains substantial. Analysts believe the core drivers of this price rally are multiple supply-side disruptions resonating with stronger-than-expected demand. The industry supply-demand balance is expected to remain tight this year, likely supporting lithium prices in a high-range volatile pattern.
Looking ahead, industry insiders note that cyclical resource sectors like non-ferrous metals, despite short-term market fluctuations, are expected to deliver promising long-term performance, benefiting from industrial structure optimization and sustained demand growth. Furthermore, based on earnings trend model analysis, the non-ferrous metals sector currently trades at reasonable valuations and is poised for a potential rebound. It is advised to closely monitor its potential performance within the industrial chain and seize the investment window presented by oversold conditions.
[The Non-Ferrous Metals Trend Has Arrived, An "Unstoppable Super Cycle"] The Metals ETF Huabao (159876) and its feeder funds (Class A: 017140, Class C: 017141) track a benchmark index that comprehensively covers sectors including copper, aluminum, gold, rare earths, and lithium. This broad coverage allows for better capture of the sector's overall beta. Additionally, this ETF is a margin trading and securities lending target, serving as an efficient tool for a one-click allocation to the non-ferrous metals sector. As of the end of April, the Metals ETF Huabao (159876) had a latest size of 1.865 billion yuan, making it the largest ETF among the three products tracking the same benchmark index in the market.
Note: The Metals ETF Huabao (159876) was previously referred to on-exchange as the Non-Ferrous Metals Leaders ETF. Risk Disclosure: The Metals ETF Huabao passively tracks the CSI Non-Ferrous Metals Index. The index base date is December 31, 2013, and it was launched 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 future index performance. The constituent stocks mentioned in this article are for illustrative purposes only. Descriptions of individual stocks do not constitute investment advice in any form, nor do they represent the holdings or trading动向 of any fund managed by the manager. The fund manager assesses this fund's risk等级 as R3-Medium Risk, suitable for Balanced (C3) and above investors. Suitability matching opinions should be based on销售机构. Any information appearing in this article (including but not limited to stocks,评论, forecasts, charts, indicators, theories, and any form of表述) is for reference only. Investors are solely responsible for their independent investment decisions. Furthermore, any views, analysis, or forecasts herein do not constitute investment advice of any kind to readers, and no liability is accepted for any direct or indirect losses arising from the use of this content. Fund investment involves risks. The past performance of a fund does not guarantee its future results. The performance of other funds managed by the fund manager does not constitute a guarantee of this fund's performance. Invest in funds with caution.
A MACD golden cross signal has formed, and these stocks are performing well.
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