Report Industry Investment Rating - Not provided Core Viewpoints - The report provides detailed tracking information on various types of arbitrage in the non - ferrous metals market including copper, zinc, aluminum, nickel, lead, and tin on February 11, 2026, such as cross - market, cross - period, and cross - variety arbitrage [1][4][8] Summary by Related Catalogs Cross - Market Arbitrage Tracking - **Copper**: On February 11, 2026, the domestic spot price was 101650, LME price was 13000 with a ratio of 7.80; the three - month domestic price was 101830, LME price was 13076 with a ratio of 7.82. The equilibrium ratio for spot import was 7.85, with a profit of - 1117.87, and a spot export profit of - 615.43 [1] - **Zinc**: The domestic spot price was 24440, LME price was 3347 with a ratio of 7.30; the three - month domestic price was 24505, LME price was 3367 with a ratio of 4.96. The equilibrium ratio for spot import was 8.24, with a profit of - 3144.42 [1] - **Aluminum**: The domestic spot price was 23290, LME price was 3072 with a ratio of 7.58; the three - month domestic price was 23600, LME price was 3106 with a ratio of 7.59. The equilibrium ratio for spot import was 8.31, with a profit of - 2253.18 [1] - **Nickel**: The domestic spot price was 132850, LME price was 17028 with a ratio of 7.80. The equilibrium ratio for spot import was 8.00, with a profit of - 3010.73 [1] - **Lead**: The domestic spot price was 16525, LME price was 1919 with a ratio of 8.61; the three - month domestic price was 16690, LME price was 1970 with a ratio of 12.43. The equilibrium ratio for spot import was 8.51, with a profit of 200.93 [3] Cross - Period Arbitrage Tracking - **Copper**: On February 11, 2026, the spreads between the next - month and spot - month, three - month and spot - month, four - month and spot - month, five - month and spot - month were 60, 330, 520, 560 respectively, while the theoretical spreads were 610, 1117, 1634, 2150 [4] - **Zinc**: The spreads were - 95, - 45, - 20, - 15 respectively, and the theoretical spreads were 226, 358, 489, 621 [4] - **Aluminum**: The spreads were 60, 145, 205, 260 respectively, and the theoretical spreads were 228, 358, 487, 616 [4] - **Lead**: The spreads were 120, 145, 205, 255 respectively, and the theoretical spreads were 208, 311, 415, 519 [4] - **Nickel**: The spreads between the next - month and spot - month, three - month and spot - month, four - month and spot - month, five - month and spot - month were - 1360, - 1130, - 810, - 700 [4] - **Tin**: The spread between the 5 - month and 1 - month was - 1690, and the theoretical spread was 7881 [4] Spot - Futures Arbitrage Tracking - **Copper**: The spreads between the current - month contract and spot, next - month contract and spot were - 215, - 155 respectively, and the theoretical spreads were 143, 712 [4] - **Zinc**: The spreads were 110, 15 respectively, and the theoretical spreads were 92, 233 [4] - **Lead**: The spreads were 20, 140 respectively, and the theoretical spreads were 94, 204 [5] Cross - Variety Arbitrage Tracking - On February 11, 2026, for the cross - variety arbitrage of copper/zinc, copper/aluminum, copper/lead, aluminum/zinc, aluminum/lead, and lead/zinc, the Shanghai (three - continuous) ratios were 4.16, 4.31, 6.10, 0.96, 1.41, 0.68 respectively, and the London (three - continuous) ratios were 3.86, 4.24, 6.64, 0.91, 1.57, 0.58 [8]

Market Updates - The Shanghai and Shenzhen stock exchanges announced the holiday schedule for the 2026 Spring Festival, with a break from February 15 to February 23, resuming trading on February 24 [1] - The Shanghai Futures Exchange adjusted the price limits and margin requirements for various futures contracts, including copper, aluminum, and gold, effective from February 9 [2] Company News - Runze Technology announced plans to issue convertible bonds to acquire assets, with trading suspended from February 6 for up to 10 trading days [4] - Tianqi Model is planning a major asset restructuring through the issuance of shares and cash to acquire equity in Dongshi Automotive Technology Group, with trading suspended from February 6 [5] - *ST Cube reported a significant stock price increase of 314.93% from January 20 to February 5, leading to a trading suspension for verification due to potential market volatility [5] - Jiangfeng Electronics plans to acquire control of Beijing Kaide Quartz Co., with trading resuming on February 6 [6] - JinkoSolar clarified that it has not engaged in any business with SpaceX and has no current orders related to "space photovoltaics," which has not impacted its financial performance [8] - Jinfu Technology intends to acquire 51% stakes in two companies for a total consideration of up to 714 million yuan, with a share transfer agreement in place [9] Industry Insights - CITIC Securities reported that the automotive industry may face profit margin pressures in Q1 2026 due to rising costs of storage and battery materials, with potential impacts from lithium carbonate price increases [10] - Galaxy Securities highlighted that AI's benefits are primarily seen in improved efficiency and cost reduction across platforms and content production, suggesting a focus on internet and AI-related stocks [11]

Core Viewpoint - Zhejiang Dibai Electric Co., Ltd. plans to conduct commodity futures and foreign exchange hedging business for the year 2026 to mitigate risks associated with price fluctuations of raw materials and exchange rate changes [2][4][19]. Group 1: Commodity Futures Hedging - The company aims to reduce the impact of price volatility of copper and aluminum, which are key raw materials, by utilizing futures contracts for hedging [4][19]. - The maximum amount of margin and premiums for copper and aluminum futures hedging is set at 10 million RMB, with a maximum contract value of 100 million RMB on any trading day [5]. - The funding for this hedging will come from the company's own funds, and the trading will be conducted on the Shanghai Futures Exchange [6][10]. Group 2: Foreign Exchange Hedging - The purpose of the foreign exchange hedging is to minimize the risks arising from exchange rate fluctuations between the RMB and foreign currencies like USD and EUR, which can affect the company's export business [9][19]. - The maximum amount of margin and premiums for foreign exchange hedging is capped at 1 million USD, with a maximum contract value of 10 million USD on any trading day [9]. - Similar to commodity hedging, the funding will also be sourced from the company's own funds, and the transactions will involve reputable financial institutions [11][10]. Group 3: Approval Process - The board of directors approved the hedging proposal during the third meeting of the sixth board on December 30, 2025, and it does not require shareholder approval [2][13]. - The decision was made with unanimous support from all attending directors, indicating strong internal consensus on the hedging strategy [24]. Group 4: Risk Management - The company has established a risk management framework to address potential risks associated with both commodity and foreign exchange hedging, including price volatility, internal control risks, and legal risks [14][17]. - A dedicated hedging management team has been set up to oversee the hedging activities, ensuring compliance with internal policies and effective risk monitoring [16][18]. Group 5: Impact on Operations - The hedging activities are aligned with the company's operational needs and are expected to enhance its risk management capabilities without adversely affecting its core business [19][20].

Core Viewpoint - The company Zhongchu Co., Ltd. announced that its subsidiary, Chengtong Commodity, plans to engage in commodity futures hedging business in 2026 to mitigate price fluctuation risks and promote spot trading [1] Group 1: Business Strategy - Chengtong Commodity will focus on trading commodities such as copper and aluminum [1] - The trading tools will include futures contracts, with trading venues being the Shanghai and Zhengzhou Commodity Exchanges [1] Group 2: Financial Details - The maximum margin utilization will not exceed 200 million yuan, which can be recycled [1] - The funding for this business will come from the company's own resources or self-raised funds [1] Group 3: Governance and Risk Management - The board of directors has approved this initiative, and it does not require shareholder meeting approval [1] - Chengtong Commodity will implement clear principles and strict scale control as risk management measures [1]

Core Viewpoint - Jiangsu Asia-Pacific Light Alloy Technology Co., Ltd. plans to conduct aluminum futures hedging business to mitigate the impact of raw material price fluctuations on its operations, with a maximum margin of RMB 50 million allocated for this purpose [1][2]. Hedging Business Overview - The company specializes in the research, production, and sales of automotive thermal management system components and lightweight system materials, with aluminum ingots as its primary raw material [2]. - The pricing principle for product sales is based on "aluminum ingot price + processing fee," referencing the monthly average high and low prices of A00 aluminum ingots from Shanghai and Yangtze River non-ferrous metal exchanges [2]. - Due to significant price volatility in the aluminum market, the company aims to lock in product sales prices and costs through the use of its own funds for aluminum futures hedging [2]. - The hedging transactions will be limited to aluminum futures contracts traded on domestic and foreign exchanges, with the business period set for one year from the board's approval date [2]. Implementation and Approval Process - The board of directors approved the hedging business on August 16, 2024, with a maximum margin of RMB 50 million [3]. - As of June 30, 2025, the investment amount for the hedging business was zero, and the matter was subsequently approved in the board meeting on August 22, 2025, without needing shareholder approval [3]. Risk Analysis and Control Measures - The company acknowledges risks associated with price fluctuations, funding, internal controls, technology, operations, and customer defaults [4]. - The maximum amount for this business represents approximately 0.62% of total assets and 0.90% of net assets as of June 30, 2025 [4]. - To mitigate risks, the company has implemented measures such as aligning hedging activities with production needs, prohibiting speculative trading, and strictly controlling the scale of funds used [4]. Business Impact and Disclosure - The hedging business will be accounted for according to relevant accounting standards, impacting the balance sheet and income statement [5]. - The business aims to lock in raw material price risks and hedge against price fluctuations [5]. - The company will disclose any significant losses related to the hedging business that exceed 10% of the audited net profit attributable to shareholders from the previous year, with a threshold of RMB 10 million [5].

Group 1 - The London Metal Exchange (LME) has imposed new restrictions on holders of large positions in near-month contracts due to low inventory levels [1] - The premium for near-month copper contracts has surged to its highest level since October 2022, indicating supply tightness [1] - The new regulations require traders holding more than the total available inventory in near-month contracts to lend their positions at zero premium to the market [1] Group 2 - A single company holds over 90% of copper warrants and spot contracts, while two other companies hold between 50-79% [2] - As of last Friday, LME copper registered warehouse inventory stands at 99,200 tons, a decrease of over 60% since mid-February, marking the lowest level since August 2023 [2] - The continuous decline in inventory amplifies the market impact of large positions, posing a risk of pricing mechanism distortion [2]

Group 1 - CME is negotiating to establish a warehouse in Hong Kong to enhance its presence in the Asian market [1] - This move follows the London Metal Exchange's (LME) inclusion of Hong Kong in its global warehouse network earlier this year [1] - CME is considering adding Hong Kong to its physical delivery network for aluminum futures contracts, which could provide clients with more convenient delivery options [1]