Non-ferrous metals surged by 148.2%, electronics skyrocketed by 203.5%! The National Bureau of Statistics released data showing that in the first two months, profits in these industries soared. Why?

Every Daily Business reporter | Zhang Hong    Every Daily Business editor | Liao Dan

On March 27, the National Bureau of Statistics released data on profits of industrial enterprises above designated size for January to February.

From January to February, profits of industrial enterprises above designated size nationwide increased by 15.2% year on year, with the growth rate accelerating by 14.6 percentage points compared with the full year of last year.

Image source: National Bureau of Statistics official website

A reporter from The Daily Economic News (hereinafter referred to as the reporter) noted that in the first two months of this year, profits in related industries such as nonferrous metals, chemicals, and semiconductors surged. The reporter conducted interviews to explore the reasons behind the profit surge in the aforementioned industries and its sustainability.

Nonferrous metals, etc., drive profit spikes in raw materials segments

Specifically, in January to February, profits in the nonferrous metals sector grew by 148.2%. Among them, profits in the aluminum rolling and processing industry, nonferrous metal alloy manufacturing, and copper rolling and processing industries increased by 264.0%, 205.1%, and 50.8%, respectively. Profits in the chemicals sector grew by 35.9%. Among them, profits in inorganic salt manufacturing, inorganic acid manufacturing, and the manufacturing of organic fertilizers and microbial fertilizers increased by 518.5%, 306.3%, and 38.5%, respectively.

Which industries are these raw materials related to?

Guotai Fund Management Co., Ltd. said in an interview with the reporter that, in terms of industries, aluminum rolling and processing products mainly serve lightweighting for new-energy vehicles, photovoltaic frame components, building structural materials, and power cables. Copper rolling and processing corresponds to power infrastructure, AI data centers, new-energy power-drive systems, and consumer electronics. Nonferrous metal alloys are linked to aerospace, defense industries, and the manufacturing of high-end equipment. In chemicals, inorganic salts are key raw materials for glass, photovoltaic products, and lithium batteries. Inorganic acids are widely used in metal smelting, fertilizer production, and semiconductor cleaning. Organic fertilizers and microbial fertilizers directly serve green agriculture and soil improvement.

Is the profit growth driven by increased orders, or by changes in costs or prices?

Guotai Fund Management Co., Ltd. said that as for the driving factors, the two industries have different underlying logics.

In the nonferrous metals industry, the surge in profits is mainly “price-driven”—with electrolytic aluminum production capacity approaching the 45 million tons per year ceiling, copper ore supply continuing to be disrupted, and boosted by emerging demand such as new energy and AI. The central aluminum and copper price levels were raised significantly versus the same period last year, and the spread in processing-stage prices expanded markedly.

The chemicals industry, meanwhile, benefits more from the resonance of a “low base + cost improvement.” In the same period of 2025, the chemicals industry was in an excess-capacity predicament of “more volume but less profit,” with extremely thin profit bases for inorganic salts and inorganic acids. This year, the central shift lower in upstream coal and crude oil prices has eased cost pressure. At the same time, “anti-over-conpetition” policies promote production cuts to secure prices and accelerate clearing out, and the product price spreads have been repaired.

Overall, the contribution of increased order volumes to profits in the two industries is relatively limited; changes in prices and costs are the core drivers.

Electronic industry profits surge by more than 2 times

In high-tech manufacturing, in January to February, profits in the electronics industry and in the semiconductor discrete device manufacturing industry increased by 203.5% and 130.5% year on year, respectively. What is the reason for the significant profit growth?

Regarding the reasons for the large increase in profits, Guotai Fund Management Co., Ltd. said first, the low-base effect. In the same period last year, the industry was at the bottom of a cycle during inventory destocking and a demand off-season, resulting in a relatively low profit base. Second, demand-side pull—especially the continued expansion in demand for power devices and discrete devices from AI servers, high-performance computing, and automotive electronics—has provided stable order support for discrete device manufacturing. Products also saw price hikes to varying degrees, which brought some incremental gains to profits.

Is this growth sustainable? In response, Guotai Fund Management Co., Ltd. said that although the figures for growth rates may change with the base effect from last year, the overall logic of a favorable outlook for the industry remains unchanged. As the ongoing and deepening of intelligent transformation and energy electronics progresses, the semiconductor industry has gradually moved out of the trough and entered a new round of upward cycle. In the future, growth momentum will be driven more by structural opportunities from technological innovation and downstream application areas, rather than solely by fluctuations in the base. Overall operating trends remain steady.

Cover image source: Media resources library of Every Daily Economic News