Investment Rating - The report maintains a "Buy" rating for several companies in the non-ferrous metals sector, including companies like Zijin Mining, China Hongqiao, and Chalco [11]. Core Insights - The report highlights that despite short-term fluctuations in macroeconomic sentiment, the long-term bullish trend for non-ferrous metals remains intact [2]. - In January, the People's Bank of China increased its gold purchases, injecting confidence into the precious metals market, while the U.S. ADP employment figures fell short of expectations, indicating a cooling job market [2][41]. - The report emphasizes the strategic importance of copper reserves, with plans to expand national copper strategic reserves and explore commercial reserve mechanisms [3]. - The aluminum market is experiencing short-term price fluctuations due to geopolitical tensions and macroeconomic policies, with supply and demand dynamics affected by seasonal factors [4]. - Nickel prices are under pressure due to declining macroeconomic sentiment, with a notable drop in prices observed [5]. - The lithium market is seeing a decline in prices and ongoing inventory reduction, with supply chain dynamics influenced by seasonal production adjustments [9]. - Cobalt prices are also weak, with reduced trading activity as companies prepare for the upcoming holiday season [10]. Summary by Sections Precious Metals - In January, China's central bank increased gold purchases from 0.93 tons to 1.24 tons, providing support to the precious metals market [2][41]. - The largest silver ETF recorded a single-day increase of 1,000 tons, marking the third-largest daily increase in history, indicating long-term investor confidence [2]. Industrial Metals - Copper prices are being closely monitored due to increased global inventories and strategic reserve discussions in China [3]. - Aluminum production is stable, but demand is declining as downstream processing enterprises begin their holiday breaks, leading to increased social inventory [4]. - Nickel prices fell by 5.8% to 132,000 yuan/ton, driven by a cooling macroeconomic sentiment [5]. Energy Metals - Lithium carbonate prices dropped by 13.2% to 138,000 yuan/ton, with ongoing inventory reduction and production adjustments ahead of the holiday season [9]. - Cobalt prices decreased by 6.3% to 410,000 yuan/ton, with demand slowing as companies finish pre-holiday stockpiling [10]. Key Companies to Watch - Companies recommended for attention include Zijin Mining, Shandong Gold, and China Hongqiao in the precious metals sector, and Chalco and Western Mining in the aluminum sector [2][4][11].

Group 1: Copper - LME copper price decreased by 1.65% to $12,855.0 per ton, while Shanghai copper fell by 3.45% to ¥100,100 per ton [1][14] - Domestic copper inventory increased by 4.03% week-on-week, with a year-on-year increase of 62,700 tons [1][14] - The operating rate of waste anode plate enterprises is expected to drop by 28.52% to 38.36% next week due to the upcoming Spring Festival [1][14] Group 2: Aluminum - LME aluminum price decreased by 3.49% to $3,026.00 per ton, and Shanghai aluminum fell by 5.07% to ¥23,300 per ton [2][15] - Domestic aluminum rod inventory increased by 15,000 tons week-on-week, reaching 258,500 tons [2][15] - The overall aluminum processing operating rate recorded 57.9%, a decrease of 1.5% week-on-week, indicating a significant divergence within the sector [2][15] Group 3: Gold - COMEX gold price increased by 6.57% to $4,988.6 per ounce, while the 10-year TIPS yield decreased by 0.06 percentage points to 1.88% [3][16] - SPDR gold holdings decreased by 10.87 tons to 1,076.23 tons, reflecting market dynamics influenced by geopolitical risks [3][16] - The U.S. Treasury yield curve reached its steepest level in nearly four years, indicating rising concerns over inflation and fiscal deficits [3][16] Group 4: Rare Earths - The price of praseodymium and neodymium oxide increased by 1.20% this week, with December exports of rare earth permanent magnets showing a year-on-year increase of 7% [4][35] - The expectation of more relaxed export policies is anticipated to boost future demand for rare earths [4][35] - Key companies to watch include China Rare Earth, Guangxi Rare Earth, and Northern Rare Earth [4][36] Group 5: Tungsten - Tungsten price increased by 11.98% this week, driven by tight supply conditions and increased strategic reserves in the U.S. [4][38] - The establishment of a $2.5 billion "strategic resilience reserve" by U.S. lawmakers is expected to elevate tungsten's priority [4][38] - Recommended companies include China Tungsten High-Tech and Xiamen Tungsten [4][38] Group 6: Lithium - The average price of lithium carbonate decreased by 13.3% to ¥148,000 per ton, while lithium hydroxide fell by 11.6% to ¥150,000 per ton [4][53] - Total lithium carbonate production this week was 20,700 tons, reflecting a slight decrease [4][53] - Market sentiment remains cautious as downstream purchasing activity is expected to slow down as inventory levels stabilize [4][53] Group 7: Cobalt - Cobalt price decreased by 5.6% to ¥420,000 per ton, while cobalt intermediate prices remained stable [5][54] - The market for cobalt intermediates is characterized by limited transactions, with prices holding steady amid geopolitical supply concerns [5][54] - Long-term structural shortages in raw materials may support future price increases [5][54]

Investment Rating - The report does not explicitly provide an investment rating for the industry Core Insights - The copper market is experiencing a decrease in prices, with LME copper down 1.65% to $12,855.0 per ton and Shanghai copper down 3.45% to ¥100,100 per ton. Supply-side indicators show an increase in copper inventory and a decrease in processing fees, while demand remains stable due to ongoing orders from major clients [1][14] - The aluminum market has seen LME aluminum prices drop by 3.49% to $3,026.00 per ton, with domestic aluminum rod inventory increasing. The overall operating rate for aluminum processing has decreased, indicating a mixed demand scenario [2][15] - Gold prices have risen by 6.57% to $4,988.6 per ounce, driven by geopolitical risks and changes in U.S. Treasury yields. The market is showing strong volatility, influenced by expectations of interest rate cuts and inflation concerns [3][16] - The rare earth sector is witnessing price increases, particularly in praseodymium and neodymium, with exports showing signs of recovery. The report suggests a positive outlook for demand and pricing in this sector [4][35] - Tungsten prices have increased significantly, supported by tight supply conditions and strategic stockpiling initiatives in the U.S. The report indicates a bullish outlook for tungsten prices [4][38] - Lithium prices have decreased, with carbonate lithium averaging ¥148,000 per ton, reflecting a decline in production and market adjustments. The report notes a potential turning point in the lithium market [4][52] - Cobalt prices have decreased by 5.6% to ¥420,000 per ton, with market conditions remaining stable but facing supply concerns. The report anticipates upward pressure on prices in the long term due to structural shortages [5][53] Summary by Sections Copper - LME copper price decreased by 1.65% to $12,855.0 per ton, with an increase in domestic inventory and a decrease in processing fees. The operating rate for copper processing is expected to decline as the industry approaches the Chinese New Year [1][14] Aluminum - LME aluminum price fell by 3.49% to $3,026.00 per ton, with an increase in aluminum rod inventory. The overall operating rate for aluminum processing decreased, indicating a mixed demand scenario [2][15] Precious Metals - Gold price increased by 6.57% to $4,988.6 per ounce, influenced by geopolitical risks and changes in U.S. Treasury yields. The market is experiencing strong volatility [3][16] Rare Earths - Prices for praseodymium and neodymium increased, with exports showing signs of recovery. The report suggests a positive outlook for demand and pricing in this sector [4][35] Tungsten - Tungsten prices increased significantly, supported by tight supply conditions and strategic stockpiling initiatives in the U.S. The report indicates a bullish outlook for tungsten prices [4][38] Lithium - Lithium prices decreased, with carbonate lithium averaging ¥148,000 per ton. The report notes a potential turning point in the lithium market [4][52] Cobalt - Cobalt prices decreased by 5.6% to ¥420,000 per ton, with market conditions remaining stable but facing supply concerns. The report anticipates upward pressure on prices in the long term [5][53]

Investment Ratings - The report indicates a positive outlook for copper and aluminum sectors, with expectations of stable production and demand recovery [2][3][13] Core Insights - Copper prices increased by 3.98% to $13,650.5 per ton on LME, while domestic prices rose by 2.31% to 103,700 CNY per ton. Supply constraints and stable production rates are noted, with a slight decrease in operating rates expected due to seasonal demand fluctuations [2][14] - Aluminum prices rose by 1.75% to $3,229.0 per ton on LME, with domestic prices at 24,600 CNY per ton. The report highlights a seasonal decline in production rates and a high operating rate in alumina plants, despite a slight increase in inventory levels [3][15] - Gold prices surged by 8.58% to $5,410.8 per ounce, driven by geopolitical risks and market volatility. The report emphasizes the impact of U.S. monetary policy on gold prices [4][16] - The rare earth sector shows a positive trend, with prices for praseodymium and neodymium oxide increasing by 11.30%. The report anticipates a favorable demand outlook due to easing export restrictions [5][34] - Tungsten prices rose by 12.99%, supported by strategic stockpiling initiatives in the U.S. and increasing demand in military applications [5][36] Summary by Sections Copper - LME copper price increased by 3.98% to $13,650.5 per ton, with domestic prices at 103,700 CNY per ton. Supply constraints are evident, with a decrease in copper processing fees [2][14] - Operating rates for copper cable enterprises increased to 59.46%, indicating stable production driven by prior orders [2][14] Aluminum - LME aluminum price rose by 1.75% to $3,229.0 per ton, with domestic prices at 24,600 CNY per ton. The report notes a decrease in operating rates due to seasonal factors [3][15] - The overall aluminum processing rate recorded at 59.4%, reflecting a seasonal decline in demand [3][15] Precious Metals - Gold prices increased significantly due to geopolitical tensions, with COMEX gold price reaching $5,410.8 per ounce. The report discusses the implications of U.S. monetary policy on gold market dynamics [4][16] Rare Earths - The price of praseodymium and neodymium oxide rose by 11.30%, with expectations of increased demand due to favorable export conditions [5][34] - The report highlights the potential for price increases in the rare earth sector driven by supply constraints and demand recovery [5][34] Tungsten - Tungsten prices increased by 12.99%, supported by strategic stockpiling initiatives and military demand [5][36] - The report suggests that the tungsten sector may benefit from ongoing geopolitical tensions and increased defense spending [5][36]

Investment Rating - The investment rating for the non-ferrous metals industry is "Positive" (maintained) [4] Core Views - The report indicates that macroeconomic fluctuations are intensifying, leading to potential price adjustments for copper and aluminum. The copper prices may experience volatility due to a strong dollar and profit-taking by long positions in the market. Meanwhile, aluminum prices are also expected to face similar adjustments due to macroeconomic pressures [3][4]. Summary by Sections 1. Industry Overview - The macroeconomic environment is characterized by the Federal Reserve's decision to maintain interest rates at 3.75% during its January meeting, with Kevin Warsh nominated as the next Fed Chair, viewed as a hawkish choice [9]. - Initial jobless claims in the U.S. exceeded expectations, indicating potential economic challenges [9]. 2. Market Performance - The non-ferrous metals sector outperformed the Shanghai Composite Index, with a weekly increase of 3.37%, while the index itself fell by 0.44% [11]. - The sector ranked fourth among all sectors in terms of performance, with notable movements in gold, copper, and tungsten [11]. 3. Price and Inventory Changes - Copper prices saw an increase of 3.54% in London and 2.31% in Shanghai, while aluminum prices fluctuated with a 4.89% increase in Shanghai but a 1.39% decrease in London [22][36]. - Inventory levels for copper and aluminum showed mixed trends, with copper inventories increasing and aluminum inventories showing both increases and decreases across different markets [22][36]. 4. Specific Metal Insights - **Copper**: The report notes a potential shift from a tight balance to a shortage in the copper supply-demand landscape, driven by insufficient capital expenditure in copper mining and frequent supply disruptions [5]. - **Aluminum**: The aluminum market is expected to face a supply surplus in the short term, but with stable demand growth, a potential shortage may arise later in the year [5]. - **Lithium**: Despite a seasonal downturn, lithium demand remains strong, with a reversal in supply-demand dynamics expected to drive prices upward [5]. - **Cobalt**: The cobalt market is experiencing tight supply conditions, with prices expected to continue rising due to structural constraints [5]. 5. Recommendations - The report suggests monitoring specific companies within the sector, including Zijin Mining, Jiangxi Copper, and Ganfeng Lithium, which are positioned to benefit from the anticipated market dynamics [5].

Key Insights - The report highlights the continued rise in cobalt prices, driven by lower-than-expected export progress from the Democratic Republic of Congo, with Q1 2026 cobalt prices closely linked to export rates [3] - Lithium prices are expected to rise due to new supply-side policies, with short-term fluctuations anticipated after the end of current disruptions [3] - The molybdenum market is stable, with steady bidding from major steel mills and slight inventory reductions in downstream stainless steel [3] - The construction materials sector shows significant earnings and valuation elasticity, particularly in consumer building materials, with many companies expected to improve profitability in 2026 due to raw material benefits and structural adjustments [3] - The media sector is experiencing rapid advancements in domestic AI models, with recommendations to focus on specific companies around the Chinese New Year [3] - In retail, the industry is shifting from "adjusting inputs" to "delivering results," with improvements in same-store sales and customer traffic expected to enhance profit margins [3] - The jewelry market is seeing high gold prices, which may impact consumer sentiment, but the traditional peak sales season in Q1 is expected to drive strong terminal sales [3] - The tourism sector is focusing on winter sports themes, with a longer Chinese New Year holiday in 2026, creating opportunities for mid- to long-term travel destinations [3]

Investment Rating - The investment rating for the non-ferrous metals industry is "Positive" (maintained) [4] Core Views - The report highlights that copper prices are experiencing high-level fluctuations amidst inventory accumulation, with short-term price adjustments expected to be limited due to the financial attributes of copper supported by rising gold prices. The supply-demand balance for copper may shift from tight equilibrium to shortage in the medium to long term, driven by insufficient capital expenditure in copper mines and frequent supply disruptions. The report suggests monitoring companies such as Zijin Mining, Luoyang Molybdenum, Jiangxi Copper, and others [5] - For aluminum, the report notes that both alumina and aluminum prices are under pressure due to high inventory levels. The short-term outlook for aluminum prices is expected to remain stable amidst high demand, particularly in the air conditioning and consumer goods sectors [5] - Lithium demand remains strong despite seasonal trends, with lithium carbonate prices entering an upward cycle driven by supply-demand reversal. The report recommends focusing on companies with high self-sufficiency in lithium resources [5] - Cobalt prices are expected to continue rising due to tight raw material supply, with the report suggesting companies like Huayou Cobalt and others for investment [5] Summary by Sections 1. Industry Overview - The report provides insights into macroeconomic indicators, including the U.S. core PCE price index and unemployment claims, which align with expectations [9] - Key announcements include Zijin Mining's completion of the second phase of the Jilong Copper Mine, significantly increasing its production capacity [10] 2. Market Performance - The non-ferrous metals sector outperformed the Shanghai Composite Index, with a weekly increase of 6.03% compared to the index's 0.84% rise [11] - The report lists the top-performing stocks in the sector, highlighting significant movements in various sub-sectors [11] 3. Valuation Changes - The report notes that the TTM PE for the non-ferrous metals sector is 33.82, with a change of 1.79, while the PB is 4.18, reflecting a significant premium over the broader market [20][23]

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 investment rating for the non-ferrous metals industry is "Positive" (maintained) [4] Core Views - Copper prices may experience high-level fluctuations in the short term due to inventory accumulation and delayed tariff expectations. Recent price changes for copper include a decrease of -0.50% for LME copper, -0.63% for SHFE copper, and -0.71% for COMEX copper. The significant inventory accumulation includes LME copper at 144,000 tons (+3.31%), COMEX copper at 54,300 short tons (+4.81%), and SHFE copper at 214,000 tons (+18.3%). The domestic electrolytic copper social inventory is at 321,000 tons (+17.20%). The operating rate for electrolytic copper rods increased to 57.47% (+9.65 percentage points) [4] - Aluminum prices are also expected to face high-level fluctuations due to inventory accumulation. The price of alumina has decreased by 1.12% to 2,655 CNY/ton, while SHFE aluminum rose by 0.83% to 24,185 CNY/ton. The operating capacity for metallurgical-grade alumina is at 89.16 million tons/year with an operating rate of 80.82% (+0.31 percentage points). Domestic aluminum production capacity is nearing its ceiling, and demand is expected to grow, potentially leading to a shortage [4] - Lithium demand remains strong despite seasonal trends, with carbonate lithium prices rising by 12.86% to 158,000 CNY/ton. The production of lithium carbonate is at 22,600 tons, with a slight increase of 0.3%. The demand for lithium battery materials continues to grow, and the supply-demand dynamics are expected to reverse, leading to an upward price trend [4] - Cobalt prices are expected to continue rising due to tight raw material supply. The price of MB cobalt increased by 0.59% to 25.68 USD/pound, while domestic cobalt prices fell by 1.31% to 452,000 CNY/ton. The supply structure remains tight, and prices are likely to rise further [4] Summary by Sections 1. Industry Overview - The macroeconomic indicators show that the US December CPI year-on-year rate is at 2.70%, matching expectations. Retail sales for November increased by 0.6%, exceeding expectations of 0.4% [8] - The overall performance of the non-ferrous metals sector shows an increase of 3.03%, outperforming the Shanghai Composite Index by 3.48 percentage points, ranking third among the Shenwan sectors [10] 2. Industrial Metals - Copper: LME copper price decreased by 0.50%, SHFE copper by 0.63%, and COMEX copper by 0.71%. Inventory levels increased significantly, with LME copper inventory up by 3.31% and SHFE copper inventory up by 18.26% [24] - Aluminum: LME aluminum price fell by 0.73%, while SHFE aluminum rose by 0.83%. The inventory situation shows a mixed trend, with LME aluminum inventory down by 1.97% and SHFE aluminum inventory up by 29.24% [34] - Lead and Zinc: LME lead price increased by 1.03%, and SHFE lead by 1.62%. LME zinc price rose by 3.17%, and SHFE zinc by 4.38%. The mining profit for zinc increased by 5.77% to 11,284 CNY/ton [48] - Tin and Nickel: LME tin price rose by 11.68%, and SHFE tin by 18.70%. LME nickel price increased by 0.14%, and SHFE nickel by 5.77% [62] 3. Energy Metals - Lithium: The price of lithium carbonate increased by 12.86% to 158,000 CNY/ton, with lithium spodumene rising by 5.32% to 1,980 USD/ton. The profit margins for lithium production are showing significant fluctuations [78] - Cobalt: The price of MB cobalt increased by 0.59% to 25.68 USD/pound, while domestic cobalt prices decreased by 1.31% to 452,000 CNY/ton. The supply dynamics remain tight, supporting price increases [90]

Market Overview - The Shanghai Composite Index fell by 0.6%, the Shenzhen Component Index decreased by 0.44%, the ChiNext Index dropped by 1.02%, and the North Star 50 declined by 2.31% [1] - The total market turnover reached 1.8952 trillion yuan, a decrease of 350.6 billion yuan compared to the previous day [1] Sector Performance - Precious metals, energy metals, and agricultural chemical sectors showed strong activity, while the commercial aerospace and AI application sectors experienced adjustments [1] - The precious metals sector continued to strengthen, with Sichuan Gold hitting the daily limit, and Hunan Silver and Xiaocheng Technology rising nearly 6% [1] - The energy metals sector also saw gains, with Huayou Cobalt and Yuanhang Precision both increasing over 6% [1] - The agricultural chemical sector performed well in the morning, with Dongfang Iron Tower rising over 8%, and Baiao Chemical and Lianhua Technology increasing over 7% [1] Notable Declines - The commercial aerospace sector faced adjustments, with multiple stocks such as Zhongke Xingtou, Tianrun Technology, and Hongxiang Co. dropping over 10% [1] - Several stocks, including Leike Defense, Changjiang Communication, and Aerospace Electronics, hit the daily limit down [1] - The AI application sector also saw declines, with Tianlong Group, Zhidema, and Hongbo Medicine hitting the 20% limit down, and stocks like Tongda Hai and Guangha Communication dropping over 10% [1]