UBS released a research report stating that industrial metals prices are supported by positive macroeconomic factors, including US interest rate cuts and a weaker US dollar, confidence in AI trading, China's anti-involution policies, and potential additional Chinese stimulus measures. The improved macroeconomic environment supports capital flows toward mining stocks. The bank believes that the overall outlook for industrial metals is improving, with risks of a significant short-term demand slowdown diminishing, while copper and aluminum's mid-term fundamentals remain attractive.

The bank stated that due to limited copper supply growth, along with factors such as constrained refined output and recovering traditional demand drivers, the fundamentals for 2026 and 2027 will continue to support prices. UBS raised its copper price forecasts for this year and next year by 3% each, from $4.24 and $4.68 per pound to $4.37 and $4.80 per pound, respectively.

Regarding aluminum, while demand performance is mixed, supply remains constrained with limited Chinese production and similarly limited upside potential in other regions. UBS raised its aluminum price forecasts for this year and next year by 5% and 2% respectively, from $1.11 and $1.16 per pound to $1.17 and $1.18 per pound.

The bank raised its earnings forecasts for ZIJIN MINING (02899, 601899.SH), CMOC (03993, 603993.SH), and JIANGXI COPPER (00358) by 4%, 5%, and 5% respectively for this year, while raising next year's earnings forecasts by 9%, 6%, and 5% respectively. The bank also raised next year's earnings forecasts for CHINAHONGQIAO (01378), CHALCO (02600), and Tianshan Aluminum (002532.SZ) by 5% to 8%.