Wedoany.com Report, On March 10, crude oil prices retreated, inflation risks decreased, and the COMEX gold futures price fluctuated and strengthened, currently trading around $5174. Precious metals and nonferrous metals funds have generally recovered. As of 11:15, the Huaxia Gold ETF rose 0.75%, the Gold Stock ETF rose 0.62%, and the Nonferrous Metals ETF Fund rose 0.18%. Its constituent stocks such as Boway Alloy, Yunnan Chihong Zinc & Germanium, Xingye Silver Tin, Yahua Group, and Western Mining all saw gains. Notably, the Nonferrous Metals ETF Fund has continuously attracted capital allocation over the past 5 days, accumulating a total of 16.76 billion yuan in net inflows. 
Long-term bottlenecks in copper and aluminum supply persist, supporting stronger nonferrous metals prices. AI opens up future growth space for terminal demand, potentially driving long-term copper price momentum. If tensions in the Middle East continue, the fundamental supply-demand balance for electrolytic aluminum may tighten more rapidly, potentially leading to a sustained rise in the central price level of aluminum.
Huachuang Securities analysis points out that the current escalation of conflicts in the Middle East exacerbates the vulnerability of overseas supply, which will intensify the global tightness in primary aluminum. However, influenced by geopolitical sentiment fluctuations, aluminum prices are exhibiting high volatility. Currently, the wave of overseas production cuts is still unfolding, and production cuts/transportation disruptions are hard constraints, while rising energy prices represent a soft constraint and a long-term constraint. The current aluminum market situation may not just be a short-term, regionally constrained supply issue caused by conflict; it could potentially evolve into a global issue due to energy problems, and its impact on supply might be long-cycle in nature.
The Nonferrous Metals ETF Fund tracks the CSI Sub-Industry Nonferrous Metals Industry Theme Index, focusing on industrial metals like gold, copper, and aluminum, as well as minor metals like rare earths, tungsten, and molybdenum. Against the backdrop of increased gold price volatility and asset allocation rebalancing, the nonferrous metals sector possesses both "commodity attributes" and "growth attributes," making it a potential focus for capital. The AI wave, combined with the re-industrialization wave, drives demand expansion for nonferrous metals like copper and aluminum, while supply-side growth is constrained. Under this supply-demand mismatch, the central price levels for copper and aluminum are expected to rise, remaining worthy of attention. Investors may consider gradually building positions during market dips.
