Shenwan Hongyuan Securities·2026-01-11 12:41Investment Rating - The report maintains a "Positive" outlook on the metals and new materials industry, anticipating a favorable spring market [2]. Core Insights - The metals sector continues to show strong performance, with the Shanghai Composite Index rising by 3.82% and the non-ferrous metals index increasing by 8.56%, outperforming the CSI 300 by 5.77 percentage points [4][5]. - Precious metals are expected to see price increases due to ongoing central bank purchases and a favorable economic outlook, with specific recommendations for companies like Shandong Gold and Zijin Mining [4][22]. - Industrial metals, particularly copper and aluminum, are projected to maintain upward price trends due to supply constraints and increasing demand from sectors like AI and energy [4][46]. Summary by Sections Market Overview - The report highlights a significant increase in the non-ferrous metals index, which rose by 8.56% compared to the previous week, indicating strong market momentum [5]. - Key segments such as precious metals, aluminum, and small metals have shown substantial weekly gains, with increases ranging from 6.30% to 12.87% [9]. Price Changes - Industrial metals prices have seen notable increases, with copper prices up by 4.24% and aluminum prices up by 4.00% [16]. - Lithium prices have surged, with battery-grade lithium carbonate increasing by 17.65% and lithium hydroxide by 20.00% [19]. Supply and Demand Dynamics - Copper supply is tightening, with domestic social inventory increasing to 274,000 tons, while production disruptions are expected due to labor negotiations in Chile [32]. - Aluminum production is also on the rise, with the operating rate for downstream processing enterprises increasing to 60.10% [46]. Company Valuations - Key companies in the sector are highlighted with their respective valuations, such as Zijin Mining with a PE ratio of 31 and Shandong Gold with a PE of 77, indicating strong market positions [20]. - The report suggests focusing on companies with stable supply-demand dynamics and cost improvements, such as Yunnan Tin and Huafon Chemical [20][21].