Since this year, the A-share nonferrous metals sector has performed well and has become one of the main investment lines attracting market attention. As of December 11, the Shenwan Nonferrous Metals Index had risen close to 77% during the year, and the stock prices of many individual stocks in the sector doubled. The strong rise in the sector is driven by multiple sources of funding such as public offering, social security, and foreign capital. According to the agency, this round of the market is driven by a combination of factors. On the supply side, industrial metals such as copper are limited by long-term insufficient capital expenditure and production capacity cycles, and supply growth is limited; on the demand side, they benefit from strong demand brought about by emerging industries such as new energy and artificial intelligence, and the global energy transition. At the same time, changes in the global monetary environment and the trend of “de-dollarization” have further strengthened the financial properties of non-ferrous metals, making their commodities resonate with their monetary attributes. Looking ahead to the future market, institutions generally believe that although short-term fluctuations in the sector may increase, the medium- to long-term business logic is still solid. The tight balance between supply and demand for major metals is expected to continue, and shortages of some varieties may persist. At the same time, the overall valuation of the sector has not fully bubbled, and the upward trend is expected to continue, driven by the production capacity cycle and supported by the macro environment.

Since this year, the A-share nonferrous metals sector has performed well and has become one of the main investment lines attracting market attention. As of December 11, the Shenwan Nonferrous Metals Index had risen close to 77% during the year, and the stock prices of many individual stocks in the sector doubled. The strong rise in the sector is driven by multiple sources of funding such as public offering, social security, and foreign capital. According to the agency, this round of the market is driven by a combination of factors. On the supply side, industrial metals such as copper are limited by long-term insufficient capital expenditure and production capacity cycles, and supply growth is limited; on the demand side, they benefit from strong demand brought about by emerging industries such as new energy and artificial intelligence, and the global energy transition. At the same time, changes in the global monetary environment and the trend of “de-dollarization” have further strengthened the financial properties of non-ferrous metals, making their commodities resonate with their monetary attributes. Looking ahead to the future market, institutions generally believe that although short-term fluctuations in the sector may increase, the medium- to long-term business logic is still solid. The tight balance between supply and demand for major metals is expected to continue, and shortages of some varieties may persist. At the same time, the overall valuation of the sector has not fully bubbled, and the upward trend is expected to continue, driven by the production capacity cycle and supported by the macro environment.