Market review. As of May 20, 2022, Shenwan nonferrous metals industry rose 6.91% this week, outperforming the CSI 300 index by 4.68 percentage points and ranking third among Shenwan 31 industries; Shenwan nonferrous metals industry rose 7.08% this month, outperforming the Shanghai and Shenzhen 300 index by 5.55 percentage points, ranking 10th among Shenwan 31 industries; Shenwan nonferrous metals sector has fallen 13.52% year to date, outperforming the Shanghai and Shenzhen 300 index by 3.94 percentage points and ranking 10th among Shenwan 31 industries.
As of May 20, 2022, among the sub sectors of the non-ferrous metal industry this week, the new metal material sector rose 11.36%, the energy metal sector rose 9.81%, the industrial metal sector rose 5.96%, the small metal sector rose 5.70% and the precious metal sector rose 1.70%.
Zhou’s view on the nonferrous metals industry. Industrial metals. As the epidemic situation eased, industrial metal enterprises in Shanghai and surrounding areas resumed work and production, China’s real estate policy was relaxed again, and consumption was booming, increasing the demand for industrial metals. The low overall inventory provides a certain decline protection for copper and aluminum prices. The futures prices of Shanghai nickel, Shanghai aluminum and Shanghai copper rose this week. It is expected that the short-term industrial metal prices will usher in a rebound. It is suggested to pay attention to Yunnan Aluminium Co.Ltd(000807) ( Yunnan Aluminium Co.Ltd(000807) ), Henan Shenhuo Coal&Power Co.Ltd(000933) ( Henan Shenhuo Coal&Power Co.Ltd(000933) ), Henan Mingtai Al.Industrial Co.Ltd(601677) ( Henan Mingtai Al.Industrial Co.Ltd(601677) ), Guangdong Jiayuan Technology Co.Ltd(688388) ( Guangdong Jiayuan Technology Co.Ltd(688388) ). noble metal. Although the sustained high inflation provides some support for the price of precious metals, the Federal Reserve is likely to tighten monetary policy, and the price of gold and silver is under pressure. Energy metals. The supply side increment is limited, the downstream demand continues to rise, the auction price of lithium concentrate outside China continues to rise, and the high outlook of the industry remains unchanged. We are optimistic about the medium and long-term stability and development of the lithium battery sector. It is suggested to pay attention to Tianqi Lithium Corporation(002466) ( Tianqi Lithium Corporation(002466) ), Chengxin Lithium Group Co.Ltd(002240) ( Chengxin Lithium Group Co.Ltd(002240) ), Ganfeng Lithium Co.Ltd(002460) ( Ganfeng Lithium Co.Ltd(002460) ), Zhejiang Huayou Cobalt Co.Ltd(603799) ( Zhejiang Huayou Cobalt Co.Ltd(603799) ). Rare earth magnetic materials. This week, the prices of rare earth raw materials and magnetic materials continued to rise, the willingness of downstream magnetic material manufacturers to purchase became stronger, the supply and demand ends of the overall rare earth magnetic material industry were repaired, and the sector rebounded strongly. It is recommended to pay attention to China Northern Rare Earth (Group) High-Tech Co.Ltd(600111) ( China Northern Rare Earth (Group) High-Tech Co.Ltd(600111) ), China Minmetals Rare Earth Co.Ltd(000831) ( China Minmetals Rare Earth Co.Ltd(000831) ), Yantai Zhenghai Magnetic Material Co.Ltd(300224) ( Yantai Zhenghai Magnetic Material Co.Ltd(300224) ), Jl Mag Rare-Earth Co.Ltd(300748) ( Jl Mag Rare-Earth Co.Ltd(300748) ).
Risk tip: macroeconomic growth is less than expected; The monetary policy tightening of the Federal Reserve and the European central bank exceeded expectations; The prices of energy metals and small metals fell; The downstream demand of nonferrous metals is lower than expected; The construction process of the project under construction is not as expected; The change of industry supply and demand pattern leads to the intensification of industry competition; The impact of the uncertainty of the situation in Russia and Ukraine on the fluctuation of industrial metal prices.
