Minsheng Securities·2025-07-06 04:33Investment Rating - The report maintains a "Buy" rating for several companies in the non-ferrous metals sector, including Zijin Mining, Luoyang Molybdenum, and Yunnan Aluminum [5]. Core Insights - The "Big and Beautiful" bill's passage and expectations of interest rate cuts by the Federal Reserve are driving strong economic forecasts in the U.S., leading to a recovery in domestic manufacturing PMI and rising industrial metal prices [2][4]. - Copper prices are under pressure due to high prices suppressing downstream purchasing intentions, despite a slight increase in the SMM imported copper concentrate index [2]. - The cobalt market is supported by a ban in the Democratic Republic of Congo, while the lithium market is still in a state of price negotiation between upstream and downstream players [3]. - Precious metals are expected to perform well due to concerns over U.S. debt and currency issues, with gold prices anticipated to rise [4]. Summary by Sections Industrial Metals - The report highlights a mixed performance in industrial metals, with aluminum prices facing downward pressure due to seasonal demand weakness and high prices affecting production [18]. - Copper prices are influenced by macroeconomic factors, with a noted decline in downstream demand and purchasing intentions [40]. - Zinc prices are fluctuating due to geopolitical tensions and market sentiment, with recent data showing a slight decline [49][50]. Precious Metals - The report indicates a bullish outlook for gold prices driven by U.S. fiscal concerns and central bank purchasing [4]. - Silver prices are also expected to rise due to its industrial applications and recovery dynamics [4]. Energy Metals - Cobalt prices are expected to rise due to supply constraints from the Democratic Republic of Congo, while lithium prices are stabilizing after a period of volatility [3]. - Nickel prices are projected to remain stable, with production adjustments expected from nickel salt producers [61]. Key Company Recommendations - The report recommends several companies for investment, including Zijin Mining, Luoyang Molybdenum, and Yunnan Aluminum, based on their strong earnings forecasts and favorable market conditions [5].