1. Report Industry Investment Rating - The report does not explicitly mention the industry investment rating. 2. Core Viewpoints of the Report - The non - ferrous metals industry is experiencing a recovery in prosperity, driven by policies that promote stable growth and optimize the supply - demand structure [2][7]. - The supply and demand of industrial non - ferrous metals are in a tight balance, with prices likely to rise and difficult to fall [2]. - The Shanghai Futures Exchange Non - ferrous Metals Futures Price Index (IMCI.SHF) is different from mainstream non - ferrous stock indices in terms of compilation, return, risk sources, and correlation, and has good asset allocation value [2]. 3. Summary According to the Directory 3.1 Manufacturing Repair Boosts Cyclical Expectations, and Industrial Non - ferrous Metals Rebound Strongly - **Policy - driven industry growth and supply - demand optimization**: In August 28, 2025, eight departments including the Ministry of Industry and Information Technology issued the "Work Plan for Stable Growth of the Non - ferrous Metals Industry (2025 - 2026)", aiming to increase the industry's added value by about 5% annually and the output of recycled metals to over 20 million tons, which will improve the supply - demand structure and enhance industrial resilience [7]. - **Low inventory and production recovery**: The global inventories of LME copper and aluminum are at a low level. The low inventory and cyclical production recovery will support non - ferrous metal prices and boost industry expectations [9]. - **Rising prices and industry recovery**: In the past three years, the prices of LME copper and aluminum have been rising, driving up the overall price of industrial non - ferrous metals. The recovery of overseas manufacturing and infrastructure investment in emerging economies has increased demand, while supply constraints and low inventory have strengthened price increases [11]. - **Emerging industries drive demand**: The rapid development of emerging industries such as industrial and service robots, and new energy vehicles has increased the demand for aluminum and copper. In 2025, the production of domestic industrial robots increased by 38.95% year - on - year, service robots by 76.64%, and new energy vehicles by 23.26% [14][17]. 3.2 Shanghai Futures Exchange Non - ferrous Metals Index: A Non - ferrous Futures Index Different from Stock Indices - **Differences in compilation schemes**: The Shanghai Futures Exchange Non - ferrous Metals Futures Price Index tracks "commodity prices", while non - ferrous stock indices track "enterprise value changes". The differences are reflected in the underlying assets, sample selection, weight determination, and operation mechanisms [21][23]. - **Compilation details**: The index selects six non - ferrous metal futures varieties. Weights are determined by the average monthly holding amount in the past five years, with a lower limit of 8% and an upper limit of 60%. It uses the "continuous three - month contract" method for contract selection and rolling, and sets a rolling window to ensure a smooth transition [34][35][40]. - **Latest positions**: The Shanghai Futures Exchange Non - ferrous Metals Index is a typical commodity portfolio concentrated on six industrial metal futures contracts. Non - ferrous stock indices are stock investment portfolios with relatively dispersed weights [45]. 3.3 Non - ferrous Futures Index: Significant Differences in Return and Risk Sources Compared with Stock Indices, and Low - Correlation Assets Help Diversify Portfolio Risks - **Differences in return and risk sources**: The rise of the futures index is directly driven by the increase in spot prices, with a simple and transparent return structure. The rise of the stock index is affected by multiple factors, and the return source is complex and indirect. The futures index is directly exposed to commodity price risks, while the stock index has more diversified risks [50][51]. - **Historical performance**: In the long - term, the Shanghai Futures Exchange Non - ferrous Metals Index has a higher annualized return, lower annualized volatility, and smaller maximum drawdown compared with other non - ferrous stock indices and major broad - based indices. It shows different market trends from the A - share market and non - ferrous stock indices, and can play a role in risk diversification [52][55]. - **Low correlation and asset allocation value**: The futures index has a weak correlation with non - ferrous stock indices and A - share broad - based indices. Adding it to a traditional stock - bond portfolio can effectively reduce overall portfolio volatility and provide a source of income during a bear market [63][64].