Resource prices

The recent non-ferrous metal stocks have seen a strong upward trend. Not only did small metal stocks such as Yunnan Kuangye rise sharply, but commodities such as China Aluminum also gained the top spot, driving the non-ferrous metals index to rise 7.12%.

The performance of non-ferrous metal stocks is so strong that it is driven by two major factors. First, global quantitative easing policies have kept global commodity prices high. The recent continuous introduction of the quantitative easing monetary policy in the euro area has made the global currency liquidity rise again. Therefore, commodity prices have remained high, laying a good external environment for the non-ferrous metal stocks of A shares to rise. Second, the effect of steady growth policies in our country began to appear. Since stable growth is mainly directed at investment in fixed assets, such as the U.S. high-voltage, railway, and loosening of real estate policies, these industries have generated large demand for non-ferrous metals. In other words, at present, the non-ferrous metals industry is not only faced with the pattern of increasing liquidity of rising product prices, but also faced with the improvement of demand information.

From the current relevant information, the above two factors have not shown signs of weakening. On the contrary, the pattern of loose liquidity seems to have further strengthened. Not only the euro zone, but also the Federal Reserve began to slow down the pace of shrinking QE after seeing the euro zone water. Therefore, the trend of the proliferation of global liquidity is expected to continue, which is conducive to the high price of commodity prices, and then boost the passion of related parties to do more non-ferrous metal stocks. What's more, at present, non-ferrous metal stocks have also ushered in a new theme stimulus, that is, about the reform of central SOEs, because many non-ferrous metal stocks are owned subsidiaries of SOEs, such as China Aluminum, etc. Therefore, the reform of central SOEs has deepened. It will also boost the longevity of such stocks.

In the short-term, non-ferrous metal stocks still have the opportunity to rise further. Among them, there are two types of stocks worth tracking, one is closely related to the construction of infrastructure projects, mainly copper-related stocks, Yunnan Copper and so on. The second is closely related to the new energy, military products, your research platinum industry, Yunnan Han industry, Dongfang Hao industry and closely related to the new energy vehicles and rare earth industry shares.