On November 13, over 17.7 billion yuan of main capital flowed into the nonferrous metals sector, ranking it second among the 31 Shenwan primary industries in terms of capital inflow. Huayou Cobalt and Tianqi Lithium attracted net main capital inflows of 1.898 billion yuan and 1.785 billion yuan, respectively, securing spots in the top six of A-share capital inflow rankings.

Among popular ETFs, the Nonferrous Metals Leader ETF (159876), which aggregates leading companies in the sector, remained highly active, with intraday gains peaking at 4.79% before closing up 3.9%. The ETF held firm above all moving averages, recording a trading volume of 80.81 million yuan—a 125% surge from the previous day—reflecting robust market activity.

Within the ETF’s underlying index of 60 constituents, 41 stocks rose over 2%. Notably, Xingye Silver & Tin, Yahua Group, Guocheng Mining, Yongxing Materials, and Shengtai Lithium hit the daily limit-up, while Tianqi Lithium and Sinomine Resource surged over 9%. Other stocks like Huaxi Nonferrous Metals and Huayou Cobalt also posted significant gains. Among heavyweight stocks, Zijin Mining and CMOC Group climbed over 4%, Chalco rose more than 3%, and Northern Rare Earth and Shandong Gold advanced over 2%.

This year, the nonferrous metals sector has outperformed all 31 A-share primary industries, emerging as one of the brightest performers. Data shows that as of October, the sector surged 75.9% year-to-date, far outpacing telecommunications (61.88%), electronics (48.1%), and power equipment (45.12%).

**Why Is the Nonferrous Metals Sector So Strong?** 1. **Earnings Performance**: Q3 2025 reports revealed that 56 of the ETF’s 60 constituents were profitable, with 44 posting year-on-year growth in net profit attributable to shareholders. 2. **Industrial Drivers**: CITIC Securities defines the current bull market in nonferrous metals as a "new productive forces boom," distinct from the 2006 cycle driven by real estate and infrastructure. This rally is fueled by demand from new energy, AI, and aerospace sectors, alongside supply disruptions that exacerbate imbalances, highlighting the strategic value of critical metals. 3. **Policy Support**: A joint policy by eight ministries, *The Nonferrous Metals Industry Growth Stabilization Plan (2025–2026)*, aims to secure strategic resources and promote digital upgrades. Anti-overcapacity measures and trillion-yuan infrastructure projects like the Yaxia Hydropower Project further bolster demand.

**Can the Rally Continue?** Oriental Securities notes that amid global monetary easing, heightened strategic resource importance, and industrial transformation, nonferrous metals are entering a new cycle driven by tight supply-demand balance, with relatively independent trends. CITIC Securities predicts the sector will maintain its bull run in 2026, citing potential price increases for copper and cobalt, lithium (boosted by energy storage demand), and sustained gains in gold. Aluminum, a laggard this year, may attract more attention in Q4.

**The "Metal Heart" of Future Industries** Given divergent drivers across metals, a diversified approach via broad-based ETFs like the Nonferrous Metals Leader ETF (159876) and its feeder funds (Class A: 017140; Class C: 017141) can help capture sector-wide beta while mitigating single-commodity risks.

*Risk Disclosure: The ETF tracks the CSI Nonferrous Metals Index (base date: Dec 31, 2013; launch date: Jul 13, 2015). Past performance (2020: +35.84%; 2021: +35.89%; 2022: -19.22%; 2023: -10.43%; 2024: +2.96%) is not indicative of future results. Constituent data is for reference only and does not constitute investment advice. Fund risk rating: R3 (moderate), suitable for balanced (C3) or higher investors. Investment carries risks; performance is not guaranteed.*