Last week, nearly 170 million yuan was continuously "attracting funds." The Silver华 (159871) non-ferrous metal ETF rose nearly 1% in early trading. Institutions: After a deep correction, non-ferrous metals are expected to usher in a structural rally.

March 30, the three major indexes opened lower across the board. Shares of the aluminum industry strengthened. As of the time of the report, the CICC Industrial Non-Ferrous Metals theme index rose 0.75%. Among the index’s constituent stocks, Tianshan Aluminum hit the daily limit up, and Yunlu Aluminum shares rose more than 6%.

Among related ETFs, Yinhua Non-Ferrous Metals ETF Yinvesco (159871) rose 0.80% as of the time of the report, with trading volume exceeding 7.8 million yuan.

In terms of capital flows, data from the Wind Financial Terminal shows that Yinhua Non-Ferrous Metals ETF Yinvesco (159871) continued to receive net inflows of funds last week (March 23–March 27), bringing in nearly 170 million yuan in total.

Yinhua Non-Ferrous Metals ETF Yinvesco (159871) closely tracks the CICC Non-Ferrous Metals Index (930708.CSI). The CICC Non-Ferrous Metals Index selects listed companies involved in the exploration and selection of non-ferrous metals, as well as the smelting, processing, and related businesses, to reflect the overall performance of non-ferrous metals-related listed companies. This ETF is equipped with 2 off-exchange connection funds: A (026458) and C (026459).

On the news front, according to CCTV Finance and Economics, on March 28, UAE-based Global Aluminum Industry Company said that its Abu Dhabi plant was attacked by Iran. On March 29, Bahrain Aluminum Industry Company also confirmed that some of its facilities were attacked by Iran. Since the escalation of conflicts in the Middle East, global aluminum supply has been impacted, and London aluminum futures prices have risen significantly. According to related media reports, the two aluminum enterprises that were hit are both major domestic aluminum producers, and together their production capacity exceeds 6% of the world’s total production capacity.

CITIC Securities said that non-ferrous metals, which have undergone a deep pullback, are expected to see a structural market opportunity. With ongoing game-playing in the conflict between Iran and the U.S., oil prices remain at high levels and continue to fluctuate, making it difficult for the market to judge when tensions will ease or a ceasefire will occur. Given that the metals sector has already shown panic-driven declines due to rate-hike expectations, valuations are currently already low and risks are controllable. Focus on the structural opportunities in lithium and rare earths with a high share of new energy demand, strategic metals (tungsten, tantalum), and gold. In addition, for industrial metals (such as copper, aluminum, tin), the energy crisis may lead to a supply contraction, which may subsequently form a positive feedback loop: energy crisis → reduced supply from overseas mineral sources (such as copper, gold, aluminum, tin) → rising prices. We continue to remain optimistic about non-ferrous metals such as gold and silver, rare earths (including yttrium oxide), tungsten, copper, aluminum, molybdenum, antimony, germanium, gallium, tantalum, niobium, uranium, tin, rhenium, and more.