Today (June 3), the non-ferrous metals sector continued its upward trend from the previous session. The largest ETF by size tracking the underlying index, the Huabao Non-ferrous Metals ETF (159876), saw its intraday gain reach 1.73% and is currently up 1.25%. Data shows this ETF attracted a net inflow of 12.92 million yuan yesterday.
Among its constituent stocks, leading copper companies led the gains significantly. Stocks related to high-speed copper cable connections, Anhui Truchum Advanced Materials And Technology Co.,Ltd. and Jintian Copper, hit their daily limit-up. Xiamen Tungsten rose over 8%, Boway Alloy gained more than 7%, with Grirem Advanced Materials and China Rare Earth Resources And Technology Group also following the upward movement.
On the news front, the U.S. Department of Commerce is expected to release its latest recommendations on refined copper import tariffs before June 30. Citigroup noted that bullish sentiment for copper has intensified due to concerns over potential U.S. import tariffs.
CITIC Securities stated that the resurgence of "tariff trade" could push copper prices to new highs. As the final deadline for the U.S. copper tariff assessment approaches, "tariff trade" and inventory hoarding have returned as key themes in the copper market. Overseas "precautionary" inventory hoarding provides solid support for copper's fundamentals, while the recent acceleration in COMEX inventory increases reflects "speculative" hoarding, which could intensify the strength in copper prices and related stocks. Copper prices are expected to potentially challenge $15,000 per ton this year. The firm highlights the investment opportunity from the combined effect of earnings leverage and valuation expansion in the copper sector.
Notably, on June 2, NVIDIA CEO Jensen Huang emphasized that copper cables are irreplaceable in AI connections. He stated that copper cables should be used wherever possible, with optical components reserved only for necessary applications. This statement directly underscores the core value of copper cables in short-distance, high-speed data transmission within AI data centers. Copper cables, with their cost advantages and transmission efficiency, are the preferred solution for short-distance interconnections.
Huaxin Futures indicated that the rise in tech stocks essentially reflects the market's optimistic pricing of demand for AI computing power, advanced manufacturing processes, and memory chips. Semiconductor manufacturing consumes significant amounts of non-ferrous and rare metals like high-purity copper, tin solder, tantalum targets, and silicon wafers. The construction of AI data centers is driving investment in power infrastructure, significantly improving demand expectations for copper as the "electrification metal." Expansion plans by Japanese and South Korean semiconductor equipment and materials companies further enhance the demand visibility for minor metals like tin, tungsten, and molybdenum.
Looking ahead, industry insiders suggest that cyclical resource sectors like non-ferrous metals, despite short-term market volatility, still have promising long-term prospects due to industrial structure optimization and sustained demand growth. Furthermore, based on earnings trend model analysis, the non-ferrous metals sector currently has reasonable valuations and is poised for a rebound. It is recommended to focus on its potential performance within the industrial chain and seize investment windows created by oversold conditions.
Non-Ferrous Metals Sector Momentum Builds, "Super Cycle" Appears Inevitable
The Huabao Non-ferrous Metals ETF (159876) and its feeder funds (Class A: 017140, Class C: 017141) track an index that comprehensively covers industries including copper, aluminum, gold, rare earths, and lithium. This broad coverage allows for better capture of the sector's overall beta performance. Additionally, this ETF is a margin trading and securities lending target, making it an efficient tool for a one-stop investment in the non-ferrous metals sector.
As of the end of May, the latest size of the Huabao Non-ferrous Metals ETF (159876) exceeded 15 billion yuan, making it the largest ETF among the three products tracking the same underlying index in the market.
Note: The previous on-exchange abbreviation for the Huabao Non-ferrous Metals ETF (159876) was "Leading Non-ferrous Metals ETF."
Risk Disclosure: The Huabao Non-ferrous Metals ETF passively tracks the CSI Non-ferrous Metals Index. The base date for this index 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 historical back-tested 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 fund manager. The fund manager assesses this fund's risk等级 as R3-Medium Risk, suitable for Balanced (C3) and above investors. Please refer to the sales机构 for the suitability matching opinion. Any information appearing in this article (including but not limited to individual stocks,评论, predictions, charts, indicators, theories, any form of表述, etc.) is for reference only. Investors are responsible for any independent investment decisions. Furthermore, any views, analyses, or forecasts in this article do not constitute investment advice of any form to the reader, nor is there any responsibility for direct or indirect losses arising from the use of this article's content. 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. Caution is advised in fund investment.
MACD golden cross signals have formed, and these stocks are performing well.
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