Jin Rong Jie·2026-01-06 06:03Core Viewpoint - The news highlights a significant rally in the non-ferrous metals sector, driven by strong market demand and favorable economic conditions, indicating a potential "super cycle" for these commodities in 2026 [1][3][4]. Group 1: Market Performance - On January 6, the Shanghai Composite Index reached a ten-year high, with the non-ferrous metals sector leading the gains, including historical highs for Zijin Mining and Luoyang Molybdenum [1]. - The popular non-ferrous metals ETF, Huabao (159876), saw an intraday increase of 4.4%, closing up 3.33%, with a trading volume exceeding 62.45 million yuan [1]. - The Huabao ETF experienced a net subscription of 39 million units, following four consecutive days of net inflows totaling 56.48 million yuan, indicating strong investor interest [1]. Group 2: Market Drivers - Domestic precious metal futures, including silver and platinum, surged over 7%, while geopolitical tensions in the U.S. drove significant increases in gold futures prices [3]. - Analysts predict that geopolitical instability will continue to be a key driver for gold demand and prices in 2026, similar to trends observed in 2025 [3]. - The non-ferrous metals sector is expected to benefit from three core drivers: the initiation of a global inventory replenishment cycle, the Federal Reserve's shift to a rate-cutting cycle leading to a weaker dollar, and the explosive demand for energy transition materials [3]. Group 3: Future Outlook - The non-ferrous metals sector is anticipated to enter a cyclical and structural bull market in 2025, with strong performance expected to continue into 2026 [4]. - The Huabao ETF and its associated funds cover a wide range of metals, including copper, aluminum, gold, rare earths, and lithium, allowing investors to capture the overall sector's performance across different economic cycles [4].