During the National Day and Mid-Autumn Festival holiday period, various mining assets, non-ferrous metals, and precious metal resource sectors generally surged significantly. In the early hours of October 7, Beijing time, the United States announced a partnership with mineral exploration company Trilogy Metals, with the U.S. acquiring a 10% stake in Trilogy Metals. Trilogy Metals shares soared over 230% in after-hours trading on the U.S. stock market.
On October 6, the Trump administration was reportedly discussing taking a stake in critical metals company Critical Metals, which could give the U.S. direct ownership rights in Greenland's largest rare earth mining project. Stimulated by this news, Critical Metals' stock price surged dramatically after the U.S. market opened on the 6th, jumping nearly 109% at one point. Other U.S. rare earth concept stocks also rose across the board, with USA Rare Earth surging over 12%, American Resources jumping over 13%, and MP Materials rising 4.8%.
Notably, the U.S. government has recently successfully taken stakes in lithium giant Lithium Americas and U.S. rare earth giant MP Materials, which owns the Mountain Pass rare earth mine. This highlights the Trump administration's determination to benefit from the growth in production of rare earths and other core minerals needed for the global economy.
According to market intelligence, funds continue to favor the future performance of precious metals and non-ferrous metals. On the last trading day of September, the non-ferrous metals sector became a market hotspot. In the futures market, Shanghai gold, Shanghai copper, and Shanghai silver were the top three varieties with the largest capital inflows. In the equity market, the non-ferrous metals sector received net inflows of over 14.3 billion yuan from main funds.
The precious metals and non-ferrous metal resource sectors had the strongest fundamentals in September, with copper prices exceeding $10,000 per ton amid continuous positive developments. Funds continued to flow in on the last trading day of September, clearly betting on strong performance during the National Day holiday period.
With the continued implementation of domestic "anti-involution" policies in the non-ferrous industry, the capacity structure on the supply side of related metals is expected to be further optimized. Securities analysts point out that with the Federal Reserve's interest rate cut implemented, commodity supply disruptions occurring frequently, combined with dual monetary and fiscal easing in the U.S. and domestic "Golden September, Silver October" seasonal demand, industrial metal prices are expected to continue rising.
Hong Kong-listed stocks in the non-ferrous metals sector include:
Copper mining: China Molybdenum (03993), Zijin Mining Group (02899), China Nonferrous Mining (01258), MMG (01208), Jiangxi Copper (00358), China Railway Construction Corporation (00390), etc.
Aluminum: Aluminum Corporation of China (02600), China Hongqiao Group (01378), United Company RUSAL (00486)
Tungsten: JIAXIN INTL RES (03858)
Cobalt: LYGEND RESOURCE (02245), China Molybdenum (03993)
Antimony: MMG (01208), Jiangxi Copper (00358)
Rare earths: JL MAG Rare-Earth (06680)
Comments