After a series of gains, the Nonferrous Metals ETF (159876) experienced fluctuations below the surface today (March 3), with its intraday price down 2.32%. Investors took advantage of the dip to buy, resulting in a real-time net subscription of 19.8 million units for the ETF by the time of reporting. Yesterday, it also attracted 21.92 million yuan in capital.
From a technical analysis perspective, after the MACD indicator formed a golden cross, the fast line DIF has continued to trade above the slow line DEA, signaling a continuation of the bullish trend. This indicates that short-term market sentiment is dominated by buying forces, and the upward momentum for stock prices remains strong.
Among the constituent stocks, Xiamen Tungsten led the gains with an increase of over 4%, while Jinduicheng Molybdenum, Huaxi Nonferrous Metals, and Western Gold rose by more than 3%. Aluminum industry leaders such as Tianshan Aluminum, Yunnan Aluminum, Nanshan Aluminum, Shenhuo Group, and Aluminum Corporation of China also traded in positive territory. On the other hand, Shenghe Resources fell over 6%, and Xingye Silver & Tin declined more than 5%, leading the losses and dragging down the index performance.
On the news front, aluminum prices rose due to market concerns that key supply routes through the Strait of Hormuz, a critical passage for major aluminum-producing countries in the Middle East, could be disrupted by regional conflicts. On Monday, aluminum prices on the London Metal Exchange (LME) increased by 1.7%, reaching their highest level since January. The aluminum term structure also tightened, with spot contracts trading at a premium to forward contracts on the LME, indicating that spot demand exceeds supply.
Citigroup noted that the aluminum market is currently facing "two-way macroeconomic pulls": on one hand, tensions in the Gulf region could push up regional premiums in Europe and the United States; on the other hand, rising risk aversion and a stronger U.S. dollar are creating a "counteracting drag." Aluminum smelters typically maintain about one to two weeks of alumina inventory, which may be higher in regions with fragile logistics, limiting immediate risks to production. More likely short-term impacts include increased war risk premiums, higher freight costs, and additional shipping delays from the Gulf region.
China Securities Co., Ltd. stated that approximately 7 million tons of primary aluminum production in six Middle Eastern countries, particularly nearly 800,000 tons in Iran, face threats to both raw material inputs and finished product outputs. With global aluminum inventories having limited shock absorption capacity, aluminum prices are trending upward.
Looking ahead, is there further upside for nonferrous metals? China Securities believes that the upward momentum for nonferrous metals remains strong. Supply disruptions, localized high demand, and stockpiling activities provide strong support for metal prices, while increased trading activity driven by loose liquidity and rising risk aversion due to geopolitical conflicts are expected to amplify price elasticity. The firm sees value in allocating to precious metals, industrial metals, battery metals, and strategic metals.
[Nonferrous Metals Sector Gains Momentum, "Super Cycle" Appears Unstoppable]
The Nonferrous Metals ETF Huabao (159876) and its feeder funds (Class A: 017140, Class C: 017141) track an index that comprehensively covers industries such as copper, aluminum, gold, rare earths, and lithium. The index spans different cyclical phases, including precious metals (safe-haven), strategic metals (growth), and industrial metals (recovery), allowing for better capture of beta opportunities across the sector. Additionally, this ETF is a margin trading target, making it an efficient tool for gaining exposure to the nonferrous metals sector.
Note: The Nonferrous Metals ETF Huabao (159876) was previously known as the Nonferrous Metals Leaders ETF.
Reminder: Recent market volatility may be significant, and short-term gains or losses do not indicate future performance. Investors should make rational investment decisions based on their financial situation and risk tolerance, paying close attention to position and risk management.
ETF Fee Explanation: When subscribing or redeeming fund units, subscription and redemption agents may charge a commission of up to 0.5%. Intraday trading fees are subject to the rates charged by securities firms. The ETF does not charge a sales service fee.
Feeder Fund Fee Explanation: For the Huabao CSI Nonferrous Metals ETF Feeder Fund (Class A), the subscription fee is 1,000 yuan per transaction for amounts of 2 million yuan or more, 0.6% for amounts between 1 million yuan and 2 million yuan, and 1% for amounts below 1 million yuan. The redemption fee is 1.5% for holdings under 7 days and 0% for holdings of 7 days or more. No sales service fee is charged. For the Huabao CSI Nonferrous Metals ETF Feeder Fund (Class C), no subscription fee is charged. The redemption fee is 1.5% for holdings under 7 days and 0% for holdings of 7 days or more. A sales service fee of 0.3% applies.
Risk Warning: The Nonferrous Metals ETF Huabao passively tracks the CSI Nonferrous Metals Index, which has a base date of December 31, 2013, and was launched on July 13, 2015. The index's performance over the past five full years is as follows: 2021, +35.89%; 2022, -19.22%; 2023, -10.43%; 2024, +2.96%; 2025, +91.67%. The index's constituent stocks are adjusted according to its compilation rules, and its historical performance does not indicate future results. The mention of index constituents in this article is for illustrative purposes only and does not constitute investment advice or reflect the holdings or trading动向 of any fund managed by the fund manager. The fund manager assesses the fund's risk level as R3-Medium Risk, suitable for balanced (C3) and higher risk tolerance investors. Suitability matching opinions are subject to the sales institution. Any information appearing in this article (including but not limited to stocks, comments, forecasts, charts, indicators, theories, and any form of expression) is for reference only, and investors are responsible for any independent investment decisions. Furthermore, any views, analyses, or forecasts in this article do not constitute investment advice of any kind to readers, and no liability is accepted for any direct or indirect losses resulting from the use of this content. Fund investments carry risks; past performance does not guarantee future results, and the performance of other funds managed by the fund manager does not constitute a guarantee of the fund's performance. Invest with caution.
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