Core Viewpoint - The non-ferrous metal sector has become a favored investment area, with significant capital inflows into the leading non-ferrous metal ETF, indicating positive market sentiment towards the sector's future performance [1][9]. Group 1: Capital Inflows - As of December 10, the leading non-ferrous metal ETF (159876) has attracted 104 million yuan in the last three days and a total of 294 million yuan over the past 20 days, reflecting strong investor interest [1][9]. - The latest scale of the non-ferrous metal ETF (159876) is 805 million yuan, making it the largest ETF among three tracking the same index in the market [1][9]. Group 2: Macro Factors - The Federal Reserve's recent decision to cut interest rates by 25 basis points, bringing the target range to 3.50%-3.75%, is expected to boost non-ferrous metal prices, as it aligns with market expectations for a "hawkish rate cut" [3][11]. - The cumulative interest rate cuts for the year have reached 75 basis points, and the Fed's stance suggests that further rate cuts may be anticipated, providing upward momentum for non-ferrous metal prices [3][11]. Group 3: Industry Developments - A breakthrough in aluminum battery technology has been achieved by a research team at Tianjin University, which developed a new low-corrosive "organic dichloro" electrolyte, facilitating the large-scale application of aluminum batteries [3][13]. - The domestic aluminum production capacity is constrained by a ceiling of 45 million tons, with current operational capacity at a high level and limited new capacity expected, indicating a favorable price outlook for electrolytic aluminum [3][13]. Group 4: Long-term Outlook - In the context of increasing global macroeconomic volatility and geopolitical tensions, non-ferrous metals are positioned as core assets for medium to long-term investment due to their supply-demand rigidity and safe-haven attributes [4][13]. - Future price increases for non-ferrous metals are anticipated to be driven by tight supply at the mining level, the transition to a green economy, and restructuring of the monetary system [4][13]. Group 5: Investment Strategy - Given the varying degrees of market conditions and drivers among different non-ferrous metals, a diversified investment approach through the leading non-ferrous metal ETF (159876) and its linked funds is recommended to mitigate risks [6][14].