Orient Securities·2026-02-04 00:45Investment Rating - The report maintains a "Positive" investment rating for the non-ferrous metals industry in China [5] Core Views - The report emphasizes a long-term perspective in the non-ferrous metals sector, particularly in light of recent volatility in precious metals prices, suggesting that while short-term fluctuations may occur, the long-term bullish trend remains intact [7][12] - The zinc sector is highlighted as an overlooked opportunity, driven by the demand from re-industrialization in Asia, Africa, and Latin America, which is expected to support prices [13] - The copper sector is viewed positively due to the historical high gold-to-copper ratio, indicating potential for price increases in copper as industrial demand grows [14] - The precious metals sector is advised to wait for price stabilization before making significant investments, despite a long-term bullish outlook [15] Summary by Sections 1. Core Views - The report stresses the importance of a long-term investment strategy in the non-ferrous metals market, particularly in precious metals, which have experienced significant price fluctuations recently [12] - Zinc is identified as a critical material benefiting from global re-industrialization trends, with supply tightness expected to support price increases [13] - Copper is projected to continue its upward trajectory due to favorable market conditions and supply constraints [14] - Investors in precious metals are advised to be cautious in the short term while maintaining a long-term bullish outlook [15] 2. Steel Industry - The steel industry is currently facing a weak fundamental backdrop as it approaches the seasonal low around the Spring Festival, with slight declines in iron and steel production [16] - Inventory levels show a divergence between social and steel mill stocks, indicating potential market adjustments [23] - Overall steel prices have seen a minor decline, reflecting broader market trends [35] 3. New Energy Metals - Lithium carbonate production saw a significant year-on-year increase of 69.09% in December 2025, indicating strong supply growth in the new energy sector [39] - The demand for new energy vehicles remains robust, with production and sales showing notable year-on-year growth [43] - Prices for lithium and nickel have shown recent declines, while cobalt prices have remained stable [48]