Core Viewpoint - The article discusses the recent volatility in the A-share market, highlighting the rise of coal and aluminum stocks while other previously hot sectors like semiconductors are experiencing corrections [1][2][5]. Group 1: Market Dynamics - The coal sector, led by Dayou Energy, has seen significant gains, with Dayou Energy achieving an 8-day consecutive rise and a 10-day total of 9 rises [1]. - Other coal companies such as Shaanxi Black Cat and Yunmei Energy have followed suit, hitting their upper price limits [2]. - In contrast, sectors like semiconductors and optical packaging are undergoing adjustments, with previously hot stocks like Xinyi Technology and Hanwang experiencing declines after brief rebounds [2][5]. Group 2: Investor Sentiment - Investors are questioning the performance of their portfolios despite the Shanghai Composite Index remaining around 3900 points, indicating a disconnect between index performance and individual stock performance [3]. - The article suggests that investors should be cautious and recognize the current market state to avoid blind investment decisions [6][7]. Group 3: Structural Adjustments - The market is undergoing structural adjustments, with funds shifting towards previously undervalued stocks and dividend-paying stocks, while hot sectors are seeing profit-taking [5][6]. - The recent surge in coal prices is attributed to seasonal demand increases, with the Qinhuangdao coal price index rising to 684 yuan/ton, marking a 4 yuan increase week-on-week [5]. - The aluminum sector is also gaining traction due to supply constraints, as Century Aluminum reported production cuts affecting 200,000 tons of capacity [5]. Group 4: Future Outlook - The article posits that the A-share market is in a transitional phase characterized by volatility, with ongoing adjustments expected as the U.S.-China trade negotiations continue [6][7]. - Investors are advised to either align with current market trends or remain patient for new opportunities [7].

Core Viewpoint - The article discusses the cyclical nature and structural opportunities within the coal and non-ferrous metal sectors, highlighting the potential for a "coal flying and color dancing" market scenario, which refers to the simultaneous rise of coal and non-ferrous metal prices driven by macroeconomic factors and supply-demand dynamics [3][5]. Group 1: Market Performance - The coal and non-ferrous sectors have shown an overall upward trend since the A-share market began to recover in September 2024, despite some underperformance in specific futures [3]. - An example of strong performance is Anyuan Coal Industry, whose stock price rose from 1.8 yuan to 7.16 yuan by March 25, 2025, indicating a potential return to the "coal flying" era [3]. - In contrast, Shanxi Coking Coal has experienced a downward trend despite the overall market rise, reflecting the divergence in performance within the coal sector [3][4]. Group 2: Supply and Demand Dynamics - The coal market is influenced by three main factors: policy regulation (such as capacity reduction and environmental restrictions), seasonal demand (like winter heating), and energy transition (renewable energy substitution) [6]. - Non-ferrous metals are more sensitive to global industrial activity and monetary policy, with copper prices closely linked to manufacturing PMI and infrastructure investment growth [6]. - The article notes that the global copper mine production growth is expected to slow to 2% in 2025, while demand growth is projected at 3.5%, indicating a potential supply-demand imbalance [8]. Group 3: Economic Context - The global economy is experiencing a "weak recovery," with China's GDP growth at 5.4% in Q1 2025, driven by infrastructure investment and manufacturing upgrades [6]. - The International Monetary Fund (IMF) forecasts a global GDP growth rate of 3.2% for 2025, which is still below pre-pandemic levels, suggesting limited demand pull for commodities [6][7]. - The article emphasizes that a true "coal flying and color dancing" market requires a conducive environment, including global economic recovery, monetary easing, supply constraints, and geopolitical premiums [6][7]. Group 4: Investment Opportunities - Investors are encouraged to focus on sectors benefiting from the new energy revolution, such as rare earth magnets and copper foil, while avoiding those reliant solely on traditional industrial demand [9]. - The article suggests that for long-term investors willing to endure market fluctuations, identifying the right timing for bottom-fishing in the coal and non-ferrous sectors could be advantageous [9].