Core Insights - The report highlights that the non-ferrous metal industry is expected to experience a revaluation opportunity in 2026, driven by the resonance of financial attributes and industrial trends, with industrial metals and strategic minor metals as the focus and precious metals as a hedge [1][2] - The overall performance of the non-ferrous metal sector in 2025 showed a structural upward trend due to supply-demand mismatches and macroeconomic easing, with a significant annual increase of 94.73%, outperforming the broader market by 67% [2][8] - The investment theme for 2026 centers on the dual drivers of financial attributes and industrial trends within the non-ferrous sector, with minor metals showing the most growth potential, precious metals in a performance realization phase, and industrial metals as a balanced foundational choice [2][40] Industry Performance Review - In 2025, the non-ferrous metal sector was a market focus due to its significant excess returns, with industrial and energy metals leading the gains, followed by minor and precious metals [8] - The rotation pattern observed in 2025 featured precious metals leading, followed by minor metals, and industrial metals making a strong finish [8] 2026 Macroeconomic and Market Outlook - The macroeconomic environment for 2026 is characterized by a transition into a bull market's second phase, driven by profit growth, with a focus on domestic demand stabilization and price recovery [15][20] - A weak dollar cycle is anticipated to support commodity prices, with historical patterns indicating that a weaker dollar correlates with higher commodity prices [16][18] - Geopolitical risks are expected to reinforce the rigidity of resource supply, leading to structural constraints in key resource commodities [17] Investment Themes for 2026 - Industrial metals are expected to benefit from a tightening supply due to long-term investment cycles and geopolitical factors, with copper prices likely to find solid support amid a balanced supply-demand landscape [41][42] - Strategic minor metals, such as rare earths, are entering a phase of systematic revaluation driven by supply constraints and policy support, with significant growth potential linked to emerging industries [44][52] - Precious metals maintain a strong long-term investment logic, with performance realization expected to aid in valuation recovery [40][61] Specific Insights on Industrial Metals - Copper, as a representative of industrial metals, is expected to see a tightening supply due to long-term investment cycles, with demand growth driven by emerging green industries [41][42] - The financial attributes of copper are enhanced in a weak dollar environment, which is expected to support its price in the long term [42] Specific Insights on Strategic Minor Metals - The rare earth sector is highlighted for its strategic importance, with China's dominance in supply and recent export control measures reinforcing its pricing power [52][53] - Demand for rare earths is expected to grow steadily due to their critical role in emerging industries such as electric vehicles and renewable energy [57][59] Conclusion - The non-ferrous metal industry is poised for a revaluation in 2026, driven by a combination of financial and industrial factors, with specific focus areas including industrial metals, strategic minor metals, and precious metals [1][2][40]