Investment Rating - The report maintains a "Positive" investment rating for the non-ferrous and steel industry in China [6]. Core Viewpoints - As expectations for interest rate cuts fluctuate, the focus should shift to sectors benefiting from mid-term fiscal policy initiatives [10][13]. - The copper sector is expected to see upward price movement due to supply constraints and increased demand from AI data centers [10][13]. - The lithium carbonate sector is poised for growth as policy improvements enhance the economic viability of energy storage projects [10][14]. - The gold sector is anticipated to experience price stability in the short term, with a bullish outlook for the medium term driven by credit and risk factors [10][15]. Summary by Sections Copper Sector - Supply guidance has been continuously revised downward, with a cumulative reduction exceeding 500,000 tons for 2025, indicating tightening supply conditions [10][13]. - Demand for copper is expected to rise significantly due to the expansion of AI data centers, with projected cumulative usage exceeding 4.3 million tons from 2025 to 2035 [10][13]. Lithium Sector - Recent policy changes have improved the economic feasibility of energy storage, with a notable strategic partnership between Haibo Shichuang and CATL for a significant battery cell procurement order [10][14]. - The demand for lithium is expected to continue its upward trend, supported by favorable policies [10][14]. Steel Sector - Steel production is entering a peak demand season, with slight increases in iron output and a decrease in rebar consumption [10][16][20]. - Overall inventory levels for steel are declining, indicating a tightening market [10][22]. - Profitability for most steel products is recovering, with cost differentiation observed across various steel types [10][26]. New Energy Metals - In October 2025, China's lithium carbonate production surged by 67.28% year-on-year, reflecting strong supply growth [10][41]. - The demand for new energy vehicles remains robust, with significant year-on-year increases in production and sales [10][45]. Price Trends - Prices for lithium and cobalt have shown upward trends, while nickel prices have experienced slight declines [10][50][51]. - The overall steel price index has seen minor fluctuations, with specific products experiencing varied price movements [10][36][37].