Group 1: Precious Metals - The long-term trend of de-dollarization is expected to continue, and investors are advised to hold onto low-position precious metals without fear of volatility [2] - Silver prices have risen this week, with the US CPI data showing a downward trend below 3%, and expectations for strong interest rate cuts remain unchanged [2] - Political events in the Americas around New Year's may trigger market risk aversion, and inflows into ETFs due to rate cut trades are expected to support the precious metals sector [2] Group 2: Copper - Copper prices have declined this week due to Nvidia's revision of data center copper usage, impacting speculative expectations [3] - There is a forecast of supply-demand tightness in copper for 2026, driven by expected production cuts from Freeport and Teck Resources [3] - The company recommends buying copper equities on dips, as moderate price adjustments will help downstream industries accept higher prices [3] Group 3: Aluminum - The weekly operating rate for downstream industries is at 60.2%, with high aluminum prices suppressing downstream consumption and industry recovery [4] - Social inventory of aluminum ingots has increased by 22,000 tons compared to the previous week, indicating ongoing pressure on aluminum prices [4] - Despite the pressure from inventory accumulation, strong macro policy expectations and geopolitical risks are providing support for aluminum prices, suggesting a buy on dips strategy [4] Group 4: Tin - Tin prices have retreated after reaching highs, influenced by increased trading margins and limits set by exchanges to cool down the overheated market [5] - The supply side remains uncertain due to conflicts in the Democratic Republic of the Congo, policies in Indonesia, and slower-than-expected production recovery in Myanmar [5] - The company suggests buying on dips for tin, as AI capital expenditures are expected to maintain high growth in 2026, indicating a positive outlook for tin prices [5] Group 5: Lithium - Lithium carbonate prices continue to rise, driven by expectations of demand front-loading due to export tax rate reductions announced by the Ministry of Finance [7] - The strong demand outlook in the energy storage sector remains intact, despite a seasonal slowdown in demand from power batteries [7] - The company believes that short-term demand for lithium has not been disproven, and prices are expected to remain high and volatile [7] Group 6: Investment Recommendations - The company recommends focusing on stocks such as Xingye Silver Tin, Tin Industry Co., Huaxi Nonferrous, New Jinlu, Dazhong Mining, Guocheng Mining, Zhongkuang Resources, Shengda Resources, Chifeng Gold, Zijin Gold International, Zhaojin Gold, Shenhuo Co., and Zijin Mining [8]

Core Viewpoint - The report from Everbright Securities highlights the increasing importance of strategic metals (copper, aluminum, cobalt, nickel, tin, antimony, tungsten, rare earths) due to supply disruptions and the limitations in production capacity in China and abroad [1][2]. Group 1: Strategic Metal Storage Initiatives - Australia announced a strategic reserve plan for critical minerals worth AUD 1.2 billion, with AUD 185 million allocated for necessary mineral reserves, prioritizing antimony, gallium, and rare earths [2] - The European Commission approved a resource revival action plan to raise EUR 3 billion for supply chain strategies, establishing a platform to support critical material reserves [2] - The U.S. Defense Logistics Agency (DLA) plans to procure USD 500 million in cobalt, USD 245 million in antimony, USD 100 million in tantalum, and USD 45 million in scandium [2] Group 2: Investment Opportunities in Strategic Metals - The focus on strategic metal storage in the U.S. and Australia presents significant investment opportunities, particularly in metals with concentrated supply chains and security risks, such as cobalt from the Democratic Republic of Congo and lithium from South America [3] - The rapid development of AI and energy transition is expected to drive demand for copper, aluminum, and tin, although supply constraints exist for these metals [4] - Military-related metals like tungsten, antimony, and rare earths are facing tightening supply, with production declines attributed to lower resource grades and regulatory controls [5] Group 3: Supply Concentration and Constraints - Copper, lithium, cobalt, and nickel supply is highly concentrated in South America, the Democratic Republic of Congo, and Indonesia, with Chile and Peru accounting for 35% of global copper production and the Democratic Republic of Congo producing 76% of global cobalt [4] - The rapid growth of AI is expected to significantly increase demand for copper, aluminum, and tin, but supply for these metals is constrained [4] - Tungsten, antimony, and rare earths are critical for military applications, but their production has decreased due to resource management practices and regulatory measures [5] Group 4: Investment Recommendations - For copper, recommended companies include Zijin Mining, Luoyang Molybdenum, and Western Mining [5] - For aluminum, Yunnan Aluminum is recommended, with China Aluminum as a focus [5] - For cobalt and nickel, Huayou Cobalt is recommended, with attention to Liqin Resources and Shengtun Mining [5] - For tungsten, focus on China Tungsten High-tech [5] - For tin, Xiyang Tin Industry is recommended, with interest in Xingye Silver Tin [5] - For antimony, Huaxi Nonferrous is highlighted, and for rare earths, Northern Rare Earth is recommended with a focus on China Rare Earth [5]

Trading Information - On January 16, 2026, Huaxi Nonferrous Metals (600301) closed at 48.21 yuan, down 4.72%, with a turnover rate of 5.66%, trading volume of 155,700 shares, and a transaction amount of 765 million yuan [1] - On the same day, the net outflow of main funds was 96.89 million yuan, accounting for 12.67% of the total transaction amount; retail funds had a net inflow of 90.10 million yuan, accounting for 11.78% of the total transaction amount [1][3] Company Announcements - The 25th meeting of the 9th Board of Directors of Guangxi Huaxi Nonferrous Metals Co., Ltd. was held on January 15, 2026, where the proposal to adjust the 2026 futures hedging plan limit was approved with a vote of 9 in favor, 0 against, and 0 abstentions [1] - The adjusted limit for the 2026 futures hedging plan is set at a maximum margin amount of 320 million yuan at any point in time, and the maximum value of contracts held on any trading day is 900 million yuan, valid from January 15, 2026, to December 31, 2026 [2] - The company held its first temporary shareholders' meeting on January 16, 2026, where several proposals were approved, including the expected daily related transactions for 2026 and the extension of commitments to avoid competition by controlling shareholders [1][3] - Guangxi Key Metals Group has become the indirect controlling shareholder of the company, holding 56.47% of the shares, while the actual controller remains the Guangxi State-owned Assets Supervision and Administration Commission [2][3]

Investment Rating - The report maintains an "Overweight" rating for the non-ferrous metals sector [5]. Core Insights - The report highlights the renewed focus on strategic metal reserves by countries like Australia, the EU, and the US, indicating a significant increase in the importance of "critical mineral resources" since 2025 [2][3]. - The strategic metal storage initiatives are expected to create investment opportunities, particularly in metals with concentrated supply chains and those essential for AI and energy transition [2][3]. Summary by Sections Strategic Metal Storage Initiatives - Australia announced a AUD 1.2 billion strategic reserve plan for critical minerals, prioritizing antimony, gallium, and rare earths [1]. - The EU plans to raise EUR 3 billion for a supply chain strategy, establishing a platform for critical materials [1]. - The US plans to procure USD 500 million of cobalt, USD 245 million of antimony, USD 100 million of tantalum, and USD 45 million of scandium [1]. Investment Opportunities - The report identifies investment opportunities in metals with high supply concentration and security risks, such as cobalt from the Democratic Republic of Congo, copper and lithium from South America, and nickel from Indonesia [2]. - It emphasizes the demand for copper, aluminum, and tin driven by AI and energy transition, while noting supply constraints for these metals [3]. - Military-related metals like tungsten, antimony, and rare earths are highlighted as having tight supply, with significant applications in defense [3]. Company Recommendations - The report recommends several companies based on their strategic positioning in the metals market: - Copper: Zijin Mining, Western Mining, and Luoyang Molybdenum [4]. - Aluminum: Yunnan Aluminum and China Aluminum [4]. - Cobalt and Nickel: Huayou Cobalt and others [4]. - Tungsten: China Tungsten High-Tech [4]. - Tin: Xiyang Tin and others [4]. - Antimony: Huaxi Nonferrous [4]. - Rare Earths: Northern Rare Earth and others [4].

Group 1: Copper - LME copper price increased by 1.41% to $13,148.5 per ton, while Shanghai copper decreased by 0.63% to ¥100,800 per ton [1] - Domestic copper inventory increased by 17.2% week-on-week, with total inventory up by 21,280 tons year-on-year [1] - The operating rate of waste anode plate enterprises rose to 75.90%, with expectations of a slight decrease next week [1] Group 2: Aluminum - LME aluminum price rose by 0.71% to $3,171.5 per ton, while Shanghai aluminum fell by 1.66% to ¥23,900 per ton [2] - The operating rate of domestic aluminum processing enterprises increased by 0.2% to 60.2% due to pre-holiday inventory demand [2] - The total production capacity of metallurgical-grade alumina is 11,032 million tons/year, with an operating capacity of 8,916 million tons/year [2] Group 3: Gold - COMEX gold price increased by 2.26% to $4,620.5 per ounce, with SPDR gold holdings rising by 10.24 tons to 1,074.8 tons [3] - Geopolitical risks have led to a strong fluctuation in the gold market, with concerns over U.S. military actions against Iran [3] - The 10-year TIPS decreased by 0.02 percentage points to 1.88% [3] Group 4: Rare Earths - The price of praseodymium and neodymium oxide increased by 8.01%, with exports of rare earth permanent magnets reaching a historical high [4] - The expectation of more relaxed export policies is anticipated to boost future demand [4] - Key companies to watch include China Rare Earth, Guangsheng Nonferrous, and Northern Rare Earth [4] Group 5: Tungsten - Tungsten concentrate price rose by 6.33%, with supply remaining tight due to pre-holiday clearances [4] - The establishment of a $2.5 billion "strategic resilience reserve" in the U.S. may increase tungsten's priority [4] - Companies to focus on include China Tungsten High-Tech and Xiamen Tungsten [4] Group 6: Tin - Tin price increased by 7.55%, with inventory levels still acceptable despite recent accumulation [4] - Supply from Indonesia and Myanmar remains below expectations, supporting an upward price trend [4] - Companies to consider include Yunnan Tin and Huaxi Nonferrous [4] Group 7: Lithium - The average price of lithium carbonate rose by 20.1% to ¥158,300 per ton, while lithium hydroxide increased by 21.2% to ¥153,700 per ton [4] - Total lithium carbonate production reached 22,600 tons, with a slight increase week-on-week [4] - The market is expected to maintain a strong upward trend due to low inventory and high demand [4] Group 8: Cobalt - Cobalt price decreased by 1.3% to ¥454,000 per ton, while cobalt intermediate prices increased by 0.6% to $25.38 per pound [5] - The market is experiencing cautious purchasing behavior due to high cost pressures [5] - The price of cobalt salts continues to rise, providing support for electric cobalt prices [5]

Investment Rating - The report maintains a "Buy" rating for several companies in the non-ferrous metals sector, including 山金国际, 赤峰黄金, 洛阳钼业, 中国宏桥, and 中钨高新 [10]. Core Insights - The non-ferrous metals sector is experiencing a general upward trend, with significant price increases across various metals, driven by macroeconomic factors and supply chain dynamics [11][19]. - The report highlights the impact of U.S. tariffs and trade policies on the supply and demand dynamics of key metals, particularly copper and aluminum [2][3]. - The report emphasizes the importance of monitoring inventory levels and production capacities, as these factors are critical in determining future price movements [26][35]. Summary by Sections Precious Metals - Concerns over tariffs have led to a temporary pullback in silver prices, but the long-term outlook remains positive [1]. - The report suggests monitoring companies such as 兴业银锡 and 盛达资源 for potential investment opportunities [1]. Industrial Metals - Copper inventories are rising, particularly in the U.S., raising concerns about supply tightness in non-U.S. regions [2]. - The report notes that while high copper prices are suppressing end-user demand, the long-term consumption outlook remains strong due to infrastructure investments [2]. Aluminum - The aluminum market is expected to experience price fluctuations due to geopolitical tensions and macroeconomic policies [3]. - The report indicates that production cuts in aluminum processing are occurring, particularly in regions like Guizhou and Henan [3]. Nickel - Nickel prices are on an upward trend, supported by supply tightening expectations from Indonesia [4]. - The report highlights the importance of monitoring companies like 华友钴业 and 力勤资源 for investment opportunities [4]. Tin - Supply chain bottlenecks and macroeconomic factors are providing short-term support for tin prices [5]. - The report suggests that companies like 华锡有色 and 兴业银锡 may benefit from these market conditions [5]. Lithium - Lithium prices are experiencing wide fluctuations due to export policy expectations and demand uncertainties [6]. - The report recommends关注 companies such as 赣锋锂业 and 天齐锂业 for potential investment [6]. Cobalt - Progress in cobalt shipments from the Democratic Republic of Congo is expected to support high cobalt prices in the short term [9]. - The report suggests monitoring companies like 华友钴业 and 腾远钴业 for investment opportunities [9].

Investment Rating - The industry rating is "Recommended" [3] Core Views - Nickel supply from Indonesia is expected to contract, providing support for nickel ore prices. As of January 16, the LME nickel spot price was $17,625 per ton, down 0.28% from January 9, while the total LME nickel inventory increased by 0.33% to 285,732 tons. The Shanghai nickel price rose by 5.01% to 144,000 yuan per ton during the same period [1] - The cobalt raw material supply in China is expected to remain structurally tight for a long time, with cobalt prices likely to continue rising. As of January 16, the price of electrolytic cobalt was 455,000 yuan per ton, down 1.30% from January 9 [2][5] - Antimony prices have stopped falling and are expected to be supported by improved demand and tight supply. As of January 15, the average price of domestic antimony concentrate was 142,500 yuan per ton, up 1.42% from January 8 [6] - Lithium carbonate prices have continued to rise significantly, with the average market price reaching 157,900 yuan per ton as of January 16, up 12.72% from January 9. The demand for lithium is expected to remain strong [8][19] - The price of tungsten is expected to rise further due to tight supply conditions. As of January 16, the price of white tungsten concentrate (65%) was 505,500 yuan per ton, up 5.20% from January 9 [13][21] Summary by Sections Nickel and Cobalt Industry - Nickel prices are expected to be supported by supply constraints from Indonesia, with a projected mining quota of 250-260 million tons for 2026, lower than market expectations. The market is also concerned about additional taxes on by-products like cobalt and iron [1][16] - Cobalt supply is expected to tighten further due to export quota policies from the Democratic Republic of Congo, with a projected production of 29,000 tons globally in 2024, a 21.8% increase year-on-year [5][17] Antimony Industry - Antimony prices are supported by tight supply and improved demand, with expectations of further price increases due to ongoing supply constraints, especially in northern China [6][18] Lithium Industry - The lithium carbonate market is experiencing significant price increases, driven by strong demand and supply uncertainties. The average price reached 157,900 yuan per ton, with expectations for continued strong performance in the near term [8][19] Tungsten Industry - The tungsten market is facing tight supply conditions, with prices expected to rise further. The domestic mining quota for tungsten is projected to be lower than previous years, contributing to supply constraints [13][21] Uranium Industry - The uranium market is experiencing supply tightness, with prices remaining high due to geopolitical factors and structural shortages in supply. The global uranium price was $63.51 per pound as of December [14][15]

Investment Rating - The report maintains an investment rating of "Leading the Market - A" for the non-ferrous metals sector, indicating an expected return that will exceed the CSI 300 index by 10% or more over the next six months [4]. Core Viewpoints - The report highlights the volatility in multi-metal prices, particularly emphasizing the rising prices of rare earth elements. It notes that while short-term fluctuations in copper prices are expected due to macroeconomic factors, certain metals like rare earths and tantalum may continue to rise independently of supply-demand dynamics [1]. - The report expresses a long-term positive outlook on metals such as copper, aluminum, rare earths, tin, lithium, gold, tantalum, niobium, antimony, and uranium [1]. Summary by Sections Non-Ferrous Metals - The report discusses the recent developments in the non-ferrous metals market, including the temporary suspension of tariffs on key minerals by the U.S. and its impact on copper prices. It notes that the expectation of increased tariffs on refined copper has significantly decreased, although risks remain [1]. - It emphasizes the importance of monitoring the supply chain, particularly in Chile, where production is affected by strikes, and the stable production guidance from the Kamoa-Kakula copper mine [3]. Precious Metals - Gold and silver prices have shown significant increases, with COMEX gold and silver closing at $4,590 and $89.2 per ounce, respectively, reflecting increases of 2.2% and 13.1% [2]. - The report indicates that the U.S. core CPI is at a four-year low, which has led to a revival in market expectations for interest rate cuts, positively influencing gold prices [2]. Industrial Metals - Copper prices have shown fluctuations, with LME copper closing at $12,822.5 per ton, down 2.63% from the previous week. The report notes an increase in copper social inventory and highlights the recovery in downstream production post-holiday [3]. - The report also discusses aluminum prices, which have been volatile, with LME aluminum closing at $3,128.5 per ton, reflecting a 0.65% decrease [4]. Energy Metals - Nickel prices have experienced significant volatility, driven by expectations of tightened production quotas in Indonesia. The report notes that domestic social inventory has increased, indicating weak demand [8]. - Cobalt prices are under pressure, with the report highlighting a tight supply situation in the Chinese market, expected to persist into the first quarter [9]. Strategic Metals - The report indicates a continued rise in rare earth prices, with specific increases noted for praseodymium and terbium oxides. It anticipates stable growth in both domestic and international demand for rare earths, suggesting a potential new inventory replenishment cycle [12]. - The report recommends monitoring companies involved in rare earth production and related sectors, indicating a positive outlook for these investments [12].

Core Viewpoint - The stock price of Huaxi Nonferrous Metals has increased by 14.0% to 48.21 yuan as of January 16, 2026, reaching a nearly one-year high of 53.88 yuan during the week [1]. Group 1: Company Announcements - Huaxi Nonferrous Metals held its ninth board meeting on January 15, 2026, approving the adjustment of the 2026 futures hedging plan, with a maximum margin amount of 320 million yuan and a maximum contract value of 900 million yuan for any trading day [1]. - The company convened its first extraordinary shareholders' meeting of 2026 on January 16, approving three proposals, including the estimated daily related transactions for 2026 and the application for comprehensive credit limits from banks, with shareholders representing 78.7392% of the total share capital present [2]. - Guangxi Key Metals Group has become the indirect controlling shareholder of the company, holding 56.47% of the shares, while the actual controller remains the Guangxi State-owned Assets Supervision and Administration Commission [3].

Group 1 - The company held its first extraordinary shareholders' meeting on January 16, 2026, with no resolutions being rejected [2] - The meeting was conducted in compliance with the Company Law and the company's articles of association, using a combination of on-site and online voting [2][3] - Three proposals were approved during the meeting, including the expected daily related transactions for 2026, the application for comprehensive credit limits from banks, and the postponement of commitments to avoid competition by controlling shareholders [4][5] Group 2 - The company adjusted its futures hedging plan for 2026, increasing the maximum margin amount from RMB 15,504 million to RMB 32,000 million and the maximum contract value from RMB 64,600 million to RMB 90,000 million [22] - The adjustment aims to mitigate risks associated with price fluctuations of raw materials and products, particularly tin, and is expected to enhance the company's overall risk resistance capabilities [10][22] - The funding for the futures hedging business will come from the company's own funds, ensuring that it does not affect normal business operations [12][22] Group 3 - The company announced a change in its indirect controlling shareholder, with Guangxi Beibu Gulf International Port Group transferring its shares in Guangxi Huaxi Group to establish Guangxi Key Metal Industry Development Group [34] - This transfer does not alter the actual controller of the company, which remains the State-owned Assets Supervision and Administration Commission of the Guangxi Zhuang Autonomous Region [34][37] - The transaction is in line with national strategies to concentrate state capital in key industries and is not expected to adversely affect the company's operations or the interests of minority shareholders [35][37]