Today (November 6), the Nonferrous Metals ETF (159876), which tracks industry leaders, extended its upward momentum with a 1.73% intraday price increase, aiming for a second consecutive positive trading day. Early capital inflows were observed, with exchange data showing the ETF attracted a total of 25.79 million yuan over the past four days.

Among constituent stocks, aluminum producers led the rally. Shandong Nanshan Aluminium Co.,Ltd. surged to its daily limit, while Aluminum Corporation of China (CHALCO) rose over 4%. Other gainers included Yunnan Aluminium and Shenhuo Group. Additionally, Yunnan Chihong Zinc & Germanium climbed over 5%, with Western Superconducting and CISRI Advanced Materials also posting strong gains of over 4%.

Citi noted on November 6 that aluminum supply will remain tight due to China hitting production capacity limits and Indonesia's constrained output growth (due to unstable power supply and production uncertainties), which could sustain long-term industry margins. China's electrolytic aluminum production is expected to peak in the next two years, with 2025 output projected at around 44.2 million tons—approaching the 45.43 million-ton cap set in 2017. Analysts warn that the current "fragile balance" in supply and demand could easily tip into shortage if demand rises or supply disruptions occur.

Industry experts suggest diversifying across the broader nonferrous metals sector rather than focusing on single metals, highlighting three key drivers: 1. **Global Monetary Easing**: Historical Fed rate cuts have triggered significant metal price rallies, as lower rates boost demand for non-interest-bearing assets like metals, while a weaker dollar makes them more affordable. 2. **Supply-Demand Imbalance**: Tight supply may push prices for copper and cobalt higher, while lithium could benefit from stronger-than-expected energy storage demand. 3. **Policy Support**: Anti-overcapacity measures mirroring 2015's supply-side reforms may revitalize the sector. Strategic resources like rare earths could see value reassessed amid stricter regulations.

The Nonferrous Metals ETF (159876) and its linked funds (Class A: 017140; Class C: 017141) track the CSI Nonferrous Metals Index, offering diversified exposure to copper (27.7% weight), aluminum (14.4%), gold (13.2%), rare earths (10.2%), and lithium (9.1%) as of October. This broad coverage helps mitigate single-metal risks.

**Risk Disclosure**: The ETF passively follows the CSI Nonferrous Metals Index (base date: December 31, 2013; launched July 13, 2015). Past annual returns: +35.84% (2020), +35.89% (2021), -19.22% (2022), -10.43% (2023), +2.96% (2024). Index composition may change per rules; historical performance doesn’t guarantee future results. Stock mentions are illustrative, not investment advice or indicative of fund holdings. The fund is rated R3 (moderate risk), suitable for balanced (C3) or higher-risk investors. Investment decisions carry risks; past performance doesn’t predict future returns.