This afternoon on May 22, the nonferrous metals sector saw its gains expand, with copper and minor metals leading a strong rally. Tongling Nonferrous Metals Group Co.,Ltd., Zhongjin Lingnan Nonfemet Co., Ltd., and Chihong Zinc & Germanium Co., Ltd. all surged to the daily limit-up. Meanwhile, the Huabao Nonferrous Metals ETF (159876), which has shown strong earnings growth but lagged in market performance, may be poised for a catch-up rally. Its intraday price rose by 3.85%, with real-time turnover reaching 1.18 billion yuan, indicating active trading.
On the news front, S&P Global forecasts that global copper demand from data centers will increase from 1.1 million metric tons in 2025 to 2.5 million metric tons by 2030, with AI-related demand accounting for 58%.
China Securities Co., Ltd. (CSC) believes that the U.S. dollar credit cycle, combined with the Kondratiev cycle (technology), supports a significant upward trend in nonferrous metal prices. However, this cycle also exhibits distinct characteristics compared to previous ones: First, due to supply rigidity and demand resilience, the cyclical volatility of nonferrous metals has significantly decreased, while profit stability has greatly improved, warranting higher valuations for equity assets. Second, driven by explosive technological demand, minor metals show substantial elasticity in this cycle, and new materials companies with global competitiveness are experiencing rapid growth. At present, in addition to precious and industrial metals, attention should be paid to elements related to new quality productive forces, especially rhenium, uranium, tin, and nickel.
Galaxy Securities notes that the sustained strong rise in metal prices has accelerated the earnings growth of the A-share nonferrous metals industry in the third quarter of 2025 and the first quarter of 2026, while the overall industry valuation remains at historically low levels. Although conflicts in the Middle East caused a pullback in nonferrous metal prices from highs, since mid-April, as market sentiment regarding Middle East geopolitical events gradually subsided, U.S.-Iran ceasefire negotiations progressed, and uncertainties around economic and liquidity expectations converged, market risk appetite has continued to recover. This is expected to support nonferrous metal prices returning to an upward trajectory, with room for further earnings growth in the industry.
Data shows that in the first quarter of 2026, among the 60 constituent stocks of the Huabao Nonferrous Metals ETF (159876), 59 companies reported profits, with 80% achieving double-digit year-on-year growth in net profit attributable to parent company shareholders, and 22 companies saw triple-digit year-on-year surges. Western Region Gold Co., Ltd. and Tianqi Lithium Industries, Inc. reported staggering increases of 21 times and 17 times, respectively.
Chart: Top 15 Constituent Stocks of Huabao Nonferrous Metals ETF (159876) by Q1 Year-on-Year Growth in Net Profit Attributable to Parent Company Shareholders
[The Nonferrous Metals Wave Has Arrived, the "Super Cycle" is Unstoppable]
The Huabao Nonferrous Metals ETF (159876) and its linked funds (Class A: 017140, Class C: 017141) track a benchmark index that comprehensively covers industries such as copper, aluminum, gold, rare earths, and lithium. It spans different cyclical phases including precious metals (safe-haven), strategic metals (growth), and industrial metals (recovery), offering broad exposure to capture the sector's beta performance. Additionally, this ETF is eligible for margin trading and securities lending, serving as an efficient tool for gaining exposure to the nonferrous metals sector.
As of the end of April, the Huabao Nonferrous Metals ETF (159876) had a latest size of 1.865 billion yuan, making it the largest ETF among the three products in the market tracking the same benchmark index.
Note: The previous intraday abbreviation for Huabao Nonferrous Metals ETF (159876) was "有色龙头ETF" (Nonferrous Metals Leaders ETF).
Risk Warning: The Huabao Nonferrous Metals ETF passively tracks the CSI Nonferrous 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 backtested 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 any form of investment advice nor represent the holdings or trading activities of any fund under the management company. The fund manager assesses this fund's risk level as R3 - Medium Risk, suitable for investors with a Balanced (C3) or higher risk profile. Suitability matching opinions should be based on the selling 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 are responsible for any independent investment decisions. Furthermore, any views, analysis, or forecasts in this article do not constitute investment advice of any kind to readers, and no responsibility is assumed 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 the fund's performance. Invest in funds with caution.
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