BOHAI SECURITIES·2026-01-27 08:29Investment Rating - The report maintains a "Positive" rating for the steel industry and a "Positive" rating for the non-ferrous metals industry, with "Buy" ratings for specific companies including Luoyang Molybdenum, Zhongjin Gold, Huayou Cobalt, Zijin Mining, and China Aluminum [6][6][6]. Core Insights - The report highlights that geopolitical uncertainties and concerns over the independence of U.S. Federal Reserve policies are expected to boost gold prices in the short term [6][6]. - The copper market is facing supply constraints due to incidents at major mines, which is likely to support copper prices despite high prices potentially suppressing actual consumption [36][36]. - The aluminum sector is expected to see price support due to downstream inventory demand, while the lithium market is anticipated to maintain a strong price trend due to export tax incentives and tight supply expectations [6][6][6]. Summary by Sections Steel - The steel industry is expected to improve profitability as growth policies are implemented, with demand in shipbuilding and construction likely to increase [3][3]. - Current steel prices are showing seasonal trends, with expectations of price fluctuations following raw material prices [19][19]. - As of January 23, 2026, the total steel inventory has increased by 0.79% compared to the previous week, indicating a potential accumulation ahead of the Spring Festival [26][26]. Copper - The copper market is experiencing a tightening supply due to strikes affecting production at key mines, which may provide price support [36][36]. - The copper smelting processing fees remain negative, indicating pressure on the supply side, while demand is expected to rise in sectors like electric power and new energy vehicles [36][36]. Aluminum - The aluminum market is characterized by stable supply and high operating rates at alumina plants, with expectations of price support from downstream inventory needs [46][46]. - As of January 23, 2026, the average price of alumina is reported at 2,657.00 CNY/ton, reflecting a slight decrease from the previous week [50][50]. Precious Metals - Geopolitical tensions and economic data are influencing gold prices, with a notable increase in prices observed recently [54][54]. - As of January 23, 2026, gold prices have risen by 8.30% on COMEX and 8.07% on SHFE compared to the previous week [54][54]. Lithium and Cobalt - The lithium market is expected to maintain a strong price trend due to export tax incentives and tight supply conditions, with battery-grade lithium prices increasing by 12.46% recently [58][58]. - Cobalt supply is constrained due to limited export quotas from the Democratic Republic of Congo, while demand is driven by the electric vehicle and consumer electronics sectors [6][6].