Minsheng Securities·2025-09-07 10:38Investment Rating - The report maintains a "Buy" recommendation for several companies in the non-ferrous metals sector, including Zijin Mining, Luoyang Molybdenum, and China Nonferrous Mining [2][4]. Core Views - The report highlights that the expectation of interest rate cuts by the Federal Reserve, combined with seasonal demand in September and October, is likely to drive up industrial metal prices. The demand for copper is expected to remain strong despite a slight decline in production [2][3]. - For energy metals, the report anticipates a significant increase in cobalt prices due to reduced supply and strong demand, while lithium prices are expected to remain robust during the traditional peak season [3]. - In the precious metals sector, the report is optimistic about gold prices rising due to strong central bank purchases and geopolitical uncertainties, with silver also expected to perform well due to its industrial applications [4]. Summary by Sections Industrial Metals - The report notes that the SMM imported copper concentrate index increased by $0.63 per ton, indicating a positive trend in copper demand. The electrolytic copper production is expected to decline, which may support prices in the upcoming months [2]. - Aluminum production has slightly increased, and the demand side shows signs of support as downstream buyers are starting to stock up [2][19]. - The report recommends companies such as Zijin Mining, Luoyang Molybdenum, and China Nonferrous Mining as key investment opportunities in the industrial metals sector [2]. Energy Metals - Cobalt prices are expected to rise significantly due to supply shortages and increased purchasing activity from the market. Lithium demand is also projected to grow, leading to a tighter supply situation [3]. - The report suggests that companies like Huayou Cobalt and Ganfeng Lithium are worth watching due to their potential in the energy metals market [3]. Precious Metals - The report emphasizes a strong outlook for gold prices, driven by expectations of interest rate cuts and ongoing central bank purchases. Silver is also expected to see price increases due to its industrial demand [4]. - Recommended companies in the precious metals sector include Western Gold, Shandong Gold, and Zhaojin Mining [4].