On October 10, two rare earth industry leaders, China Northern Rare Earth(Group)High-Tech Co.,Ltd. and Baosteel Group, announced significant price increases. Following this adjustment, the fourth quarter 2025 rare earth concentrate trading prices have risen approximately 37% compared to third quarter levels, reaching the highest point since the second quarter of 2023.
CICC notes that China maintains a leading position in the rare earth sector, accounting for 61% of global mining output in 2024. More importantly, over 90% of refining processes are concentrated in China. Rare earth controls emerged as a "first move" on the "negotiation table" in April, but the series of measures announced on October 9 were more stringent. Starting November 8, export controls will be implemented on superhard materials, certain rare earth equipment and auxiliary materials, five types of medium and heavy rare earths, lithium batteries, and artificial graphite anode materials. Additionally, immediate controls will be imposed on overseas rare earth exports and rare earth technology.
The new regulations require multinational companies to obtain Chinese government permits if their products contain Chinese rare earth minerals worth 0.1% or more of the product value, creating challenges for critical supply chains of multinational technology companies. Notably, a Ministry of Commerce spokesperson stated that China's export controls do not constitute export bans, and compliant export applications for civilian use can be approved, so relevant companies need not worry.
East Money points out that China's comprehensive control over the rare earth industry may lead to downward revisions in global rare earth supply growth expectations, benefiting the high-quality development of China's domestic rare earth industry. Rare earth permanent magnet materials are closely related to industries such as humanoid robots, and the sector may benefit from expected demand growth in emerging industries in the future.
In today's market (October 13), the market consolidated, and the Nonferrous Metals Leading ETF (159876), which encompasses leading companies across the nonferrous metals industry, retreated with the market, with intraday prices down 1.33% and real-time trading volume exceeding 43 million yuan, showing active trading.
Notably, funds are buying on dips! As of press time, the Nonferrous Metals Leading ETF (159876) received real-time net subscriptions of 20.4 million shares! Shenzhen Stock Exchange data shows the ETF attracted 258 million yuan over the past three days and accumulated 321 million yuan over the past 20 days. As of October 10, the Nonferrous Metals Leading ETF (159876) reached a latest scale of 584 million yuan, setting a new historical high!
Among constituent stocks, rare earth and gold sectors led gains, with China Northern Rare Earth(Group)High-Tech Co.,Ltd. leading with gains exceeding 7%. Youyan New Materials and China Rare Earth rose over 6%, while West Gold and Shenghe Resources gained over 5%. Baiyin Nonferrous Metals, Huayou Cobalt, and Chifeng Gold also followed suit. Conversely, Northern Copper and Jiangxi Copper fell over 6%, leading declines and dragging down index performance.
Shenwan Hongyuan Securities points out that the nonferrous metals industry maintains high prosperity levels. Precious metals are influenced by Federal Reserve rate cuts, geopolitical conflicts, and tariff policies, with international gold prices breaking through the $4,000 mark. For industrial metals, copper and aluminum prices continue to rise due to supply constraints from Indonesian mine shutdowns and a weak dollar environment. Rare earth prices remain strong due to tightened export control policies. The nonferrous metals mining and smelting processing industry shows both volume and price increases, maintaining high profit growth rates.
【The "Metallic Heart" of Future Industries, the "Golden Bloodstream" of Modern Industry】
Different nonferrous metals have varying prosperity levels, rhythms, and driving factors, making differentiation inevitable. For those optimistic about the nonferrous metals sector, a relatively straightforward approach is comprehensive coverage to better capture the entire sector's beta performance. The Nonferrous Metals Leading ETF (159876) and its feeder funds (Class A: 017140, Class C: 017141), which encompass leading companies across the nonferrous metals industry, passively track the CSI Nonferrous Metals Index. The index has sector weightings of 27.6% for copper, 14.5% for gold, 13.1% for aluminum, 10.4% for rare earths, and 8.4% for lithium. Compared to investing in single metal industries, this provides risk diversification and is suitable as part of an investment portfolio allocation.
Risk Warning: The Nonferrous Metals Leading ETF and its feeder funds passively track the CSI Nonferrous Metals Index, which has a base date of December 31, 2013, and was published on July 13, 2015. The index's returns over the past five complete years were: 2020: 35.84%; 2021: 35.89%; 2022: -19.22%; 2023: -10.43%; 2024: 2.96%. Index constituent composition is adjusted according to index compilation rules when appropriate, and historical backtest performance does not predict future index performance. Individual stocks mentioned in this article are for display purposes only and do not constitute investment advice of any form, nor do they represent holding information or trading activities of any funds under management. The fund manager assesses this fund's risk level as R3-Medium Risk, suitable for balanced (C3) and above investors. Please refer to sales institutions for appropriateness matching opinions. Any information appearing in this article (including but not limited to individual stocks, comments, predictions, charts, indicators, theories, any form of expression, etc.) is for reference only, and investors must take responsibility for any autonomous investment decisions. Furthermore, any views, analyses, and predictions in this article do not constitute investment advice of any form for readers, nor do they bear any responsibility for direct or indirect losses arising from the use of this content. Fund investment carries risks, past fund performance does not represent future performance, and performance of other funds managed by the fund manager does not guarantee fund performance. Fund investment requires caution.
MACD golden cross signal formed, these stocks show good upward momentum!
