The nonferrous metals ETF Huabao (159876) rose as much as 0.98% during today's session (April 7), currently trading up 0.59%. From a technical perspective, the fund appears to be establishing a pattern of gradual upward movement since hitting its recent low on March 23. Data indicates the ETF has attracted net inflows of 24.35 million yuan over the past five trading days, reflecting investor confidence in the nonferrous metals sector and active positioning.
Among constituent stocks, aluminum producers led the gains with Tianshan Aluminum Group Co.,Ltd. and Henan Zhongfu Industrial Co.,Ltd. both advancing over 4%. Huafeng Aluminum and Shenhuo Co. rose more than 3%, while Mingtai Aluminum followed the upward trend. Rare earth leaders also delivered strong performances, with China Rare Earth Metals, Shenghe Resources, and Northern Rare Earth gaining over 2%.
In aluminum industry developments, Emirates Global Aluminium, the Middle East's largest aluminum producer, has been forced to suspend operations at its primary smelter in Abu Dhabi. Natixis SA analyst Bernard Dahdah noted that damage from metal solidification during the smelting process could require at least one year to repair. This disruption may transform the aluminum market from a 200,000-ton surplus next year to a supply deficit of approximately 1.3 million tons. CITIC Securities analysis of the 2021-2022 energy crisis revealed aluminum prices and sector valuations surged by 60%/100% at their peaks. Looking ahead, continued optimism surrounds the aluminum sector's potential for simultaneous price and valuation increases.
SDIC Securities suggested that factors including the current U.S. economy, employment situation, and midterm elections make further Federal Reserve rate hikes unlikely, with potential rate cuts remaining possible within the year. Elevated crude oil prices may pressure countries heavily reliant on petroleum imports (such as Japan and South Korea), but China's diversified energy supply structure minimizes this impact and could even accelerate unexpected growth in new energy demand. The firm recommends focusing on structural opportunities in rare earths and lithium with high new energy demand exposure, strategic metals (tungsten, tantalum), aluminum (due to Middle East supply disruptions), and gold.
Huatai Securities expressed optimism about rebound opportunities in the oversold nonferrous metals sector: historical patterns indicate gold typically rebounds quickly after geopolitical conflicts, with central bank accumulation providing price support. For industrial metals, tight copper concentrate supply and declining domestic inventories, combined with unpriced aluminum capacity risks in the Middle East, maintain fundamental support. Among minor metals, rare earths, tungsten, molybdenum, and cobalt benefit from geopolitical catalysts and strengthened strategic reserve and military inventory expectations, with supply concentration in China creating irreplaceable external shock resistance and medium-term allocation value worth monitoring.
The nonferrous metals ETF Huabao (159876) and its feeder funds (Class A: 017140, Class C: 017141) track an index comprehensively covering copper, aluminum, gold, rare earths, lithium and other sectors across different cycles—precious metals (hedging), strategic metals (growth), and industrial metals (recovery)—enabling investors to capture broader sector beta. The ETF is also a margin trading security, serving as an efficient tool for sector exposure.
As of February, the nonferrous metals ETF Huabao (159876) maintained a size of 2.427 billion yuan with average daily turnover exceeding 100 million yuan over the past month, ranking first in both scale and liquidity among three ETFs tracking the same index.
Note: The fund was previously traded under the ticker "有色龙头ETF".
Risk Disclosure: The ETF passively tracks the CSI Nonferrous Metals Index, which has a base date of December 31, 2013, and was launched on July 13, 2015. Index constituents are adjusted according to its methodology, and past performance does not guarantee future results. Constituent stock descriptions herein are for illustrative purposes only and do not constitute investment advice or reflect the fund manager's holdings. The fund manager assesses this product as R3-medium risk, suitable for balanced (C3) or higher risk profile investors. Any information appearing in this article is for reference only, and investors remain responsible for independent investment decisions.
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