On Friday, June 12th, the nonferrous metals sector led the market higher, attracting net main fund inflows exceeding 16.7 billion yuan throughout the day. The sector's capital intake topped the list among the 31 primary Shenwan industries! Luoyang Molybdenum received net main fund inflows of 2.936 billion yuan, claiming the top spot on the A-share capital attraction ranking.
Among popular ETFs, the largest ETF by underlying index size, the Huabao Nonferrous Metals ETF (159876), saw its intraday price surge over 7%, closing up 5.15%. Daily turnover reached 200 million yuan, a sharp increase of 117% compared to the previous session. The ETF decisively reclaimed its 10-day and 20-day moving averages, securing a four-day winning streak.
Accompanying the fervent market activity, capital actively flowed in to establish positions! Data shows the Huabao Nonferrous Metals ETF (159876) received net subscriptions of 94.6 million units throughout the day.
Constituent stocks ignited a wave of limit-up gains. Tongling Nonferrous Metals, Luoyang Molybdenum, Jinmu Shares, Northern Copper, Hailiang Shares, Jintian Shares, and Chihong Zinc & Germanium all hit the daily limit-up. Yunnan Tin, Yunnan Copper, and Jiangxi Copper touched the limit-up price during the session. Heavyweight stock Zijin Mining rose over 6%, while Northern Rare Earth and Aluminum Corporation of China (Chalco) gained more than 4%.
Drivers Behind Today's Nonferrous Metals Rally
The significant rise in the nonferrous metals sector today can potentially be analyzed from three perspectives:
Firstly, on the macroeconomic front, signals from the U.S. administration regarding a potential "peace agreement" with Iran have led to a retreat in geopolitical risk premiums and a notable recovery in risk appetite. Previously, a significant cooling in U.S. May CPI data markedly eased inflation pressures, leading traders to reduce bets on Federal Reserve rate hikes, temporarily alleviating tightening concerns.
Secondly, from an industrial standpoint, a technological breakthrough in semiconductor materials has boosted sentiment. SK Hynix has completed production verification for its 375-layer 3D NAND, with the key highlight being the substitution of molybdenum for traditional tungsten in word line production, energizing the molybdenum industry chain. Additionally, the ongoing implementation of AI liquid cooling is creating new demand scenarios for copper. Hailiang Shares showcased liquid cooling precision components, including diamond copper and high-performance microchannel cold plates, at the Shanghai International Data Center Industry Expo. The surging wave of AI industry development is positioning nonferrous metals as critical raw materials.
Thirdly, regarding financial performance, the nonferrous metals industry is showing an accelerating trend in both operating revenue and net profit. In Q1 2026, the total operating revenue for the nonferrous metals sector (CITIC Primary Industry) reached 11,443.9 billion yuan, a year-on-year increase of 37.5%, compared to 8.6% in Q1 2025. Net profit attributable to parent shareholders was 94.8 billion yuan, surging 109.7% year-on-year, versus 67.3% in the same period of 2025.
Galaxy Securities notes that the sustained strong price increases for nonferrous metals have accelerated the sector's earnings growth in Q1 2026, while overall industry valuations remain at historically low levels. As market sentiment gradually digests Middle East geopolitical events, with U.S.-Iran ceasefire negotiations progressing and uncertainties around economic and liquidity expectations converging, the ongoing recovery in market risk appetite is expected to support nonferrous metals prices returning to an upward trajectory, providing room for further earnings growth in the sector.
Positioning for the Nonferrous Metals Trend
The Huabao Nonferrous 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品类 coverage allows for better capture of the sector's overall beta performance. Furthermore, this ETF is eligible for margin trading and securities lending, serving as an efficient tool for a one-click allocation to the nonferrous metals sector.
As of the end of May, the latest size of the Huabao Nonferrous Metals ETF (159876) exceeded 1.5 billion yuan, making it the largest ETF among the three products in the market tracking the same underlying index.
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