– Industrial metals sector experiences broad-based rally, with Zijin Mining Group Co., Ltd. surpassing CNY 700 billion市值 for the first time.
– Supply disruptions from Freeport-McMoRan’s Grasberg copper mine in Indonesia and policy changes in the Democratic Republic of Congo drive price increases.
– Macroeconomic factors including Federal Reserve rate cuts and China’s anti-involution policies provide tailwinds for sustained growth.
– Investment opportunities remain attractive due to valuation gaps compared to热门 sectors like AI and新能源.
Industrial metals are capturing global investor attention as a significant surge propels key players to unprecedented heights. The industrial metals surge has been ignited by a combination of supply-side shocks and supportive macroeconomic policies, creating a fertile environment for growth. This rally is not merely a short-term spike but appears to be underpinned by fundamental shifts in the global economic landscape. For instance, Zijin Mining Group Co., Ltd., often referred to as the ‘Copper King,’ has seen its市值突破 the CNY 700 billion mark, setting a new record. This movement highlights the broader industrial metals surge that is reshaping investment strategies worldwide.
Investors are keenly observing how these developments align with broader trends such as the Federal Reserve’s easing cycle and China’s domestic reforms. The industrial metals surge offers a compelling narrative for those looking to diversify away from overheated sectors. With copper prices climbing and major mines facing operational halts, the stage is set for continued momentum. This article delves into the drivers, key players, and future outlook of this dynamic market shift.
The Broad-Based Rally in Industrial Metals
The industrial metals sector has witnessed a remarkable uptick, with gains spreading across various sub-sectors. This industrial metals surge is characterized by increased trading volumes and significant capital inflows, signaling strong market confidence.
Market Performance Overview
As of September 25, 2025, the industrial metals板块整体上涨 1.31%, with主力资金净流入 nearly CNY 16 billion. This performance places it among the top-performing概念 in the A-share market. The rally is broad-based, encompassing copper, aluminum, molybdenum, and other小金属. For example, copper prices have jumped, with the Shanghai futures contract for copper rising 3.4% to CNY 82,710 per ton, the highest since March 26. This industrial metals surge is supported by both domestic and international factors, including supply constraints and anticipatory buying ahead of expected economic stimuli.
Data from market analysts indicate that since the April lows, the industrial metals板块 has overall risen more than 50%, with nearly 20 stocks doubling in市值 and over half seeing gains exceeding 50%. This underscores the depth of the industrial metals surge, which, while trailing some热门赛道 like AI, remains highly lucrative. The consistency of these gains suggests that the industrial metals surge may have staying power, driven by enduring supply-demand imbalances.
Key Stocks Leading the Charge
Several龙头企业 have emerged as frontrunners in this industrial metals surge. Zijin Mining Group Co., Ltd. saw its A-share price gap up and close 5.17% higher, with市值 exceeding CNY 700 billion. Similarly, its H-shares rose 5.47%, pushing市值 to HKD 830.815 billion. Other notable performers include Jiangxi Copper Company Limited, Tongling Nonferrous Metals Group Co., Ltd., and Northern Copper Co., Ltd., all posting gains over 5%. These stocks have benefited from their dominant positions in the copper supply chain, amplifying the effects of the industrial metals surge.
Luoyang Molybdenum Co., Ltd. also stood out, nearly hitting the daily limit-up with a 9.90% gain, closing at CNY 13.87 and approaching a市值 of CNY 300 billion. From its April low, the stock has surged 145%, second only to Zijin Mining in the nonferrous metals sector. This highlights how the industrial metals surge is lifting even secondary players, providing diversified investment avenues. The concentration of gains among leaders suggests that quality assets are being rewarded, reinforcing the industrial metals surge’s credibility.
Catalysts Driving the Industrial Metals Surge
Multiple factors are fueling the industrial metals surge, ranging from unexpected supply disruptions to strategic policy shifts. Understanding these catalysts is crucial for anticipating future movements.
Supply-Side Shocks: The Grasberg Incident
A major trigger for the recent industrial metals surge was the泥石流 accident at the Grasberg copper mine in Indonesia, operated by Freeport-McMoRan Inc. On September 8, 2025, the incident resulted in two fatalities and five missing workers, leading to a production halt. The company estimates that copper and gold output could fall 35% in 2026, with pre-accident levels not expected until 2027 at the earliest. This disruption has tightened global copper supplies, directly contributing to the industrial metals surge by exacerbating existing deficits.
The Grasberg mine is the world’s second-largest copper producer, and its closure has ripple effects across the market. Copper现货 prices have followed futures higher, rising nearly 3% in various regions. This supply shock underscores the fragility of global mining operations and their impact on the industrial metals surge. Analysts note that while Chinese smelters are in a maintenance period, reducing immediate demand, new equipment investments are increasing ore needs, potentially pushing spot prices higher. This dynamic reinforces the industrial metals surge as a response to structural supply issues.
Macroeconomic Tailwinds: Fed Policy and China’s Reforms
The industrial metals surge is also being propelled by macroeconomic policies. The Federal Reserve’s shift toward a rate-cutting cycle is weakening the U.S. dollar, making dollar-denominated metals like copper more affordable for international buyers. Additionally, lower rates stimulate global economic activity, boosting demand for industrial metals used in construction and manufacturing. Since August 22, 2025, when Fed Chair Jerome Powell hinted at easing, gold and nonferrous metals have embarked on a new rally, further cementing the industrial metals surge.
In China, the ‘anti-involution’ policies are driving供给侧改革, reducing inefficient competition and supporting price stability. These reforms, combined with稳增长 measures, are creating a favorable environment for the industrial metals surge. As Zhang Teng (张腾), a fund manager at Yinhua Fund Management Co., Ltd., noted, ‘The entire nonferrous sector benefits from the U.S. rate-cut cycle, but different metals have varying rhythms.’ This expert insight validates the industrial metals surge as a macro-driven phenomenon with layered opportunities.
Spotlight on Major Players
Zijin Mining: The Copper King’s AscentZijin Mining Group Co., Ltd. has been a standout in the industrial metals surge, with its year-to-date gain reaching 80%. While gold operations have driven much of this growth, copper contributes significantly—accounting for 27.8% of sales revenue and 38.5% of gross profit in the first half of 2025. The company’s diversified portfolio allows it to capitalize on multiple facets of the industrial metals surge, from precious to base metals. Its record市值 reflects investor confidence in its ability to navigate supply chains and maintain profitability amid volatility.
Zijin’s performance is a microcosm of the broader industrial metals surge, demonstrating how integrated players can leverage scale advantages. With copper prices staying high and demand resilient, the company is well-positioned for continued growth. This aligns with the industrial metals surge’s theme of quality over quantity, where established leaders outperform.
Luoyang Molybdenum: A Multimetal Powerhouse
Luoyang Molybdenum Co., Ltd. has surged 145% from its April low, buoyed by its exposure to copper, cobalt, and other strategic metals. In 2024, its TFM and KFM mines held resources of 30.14 million tons of copper/3.31 million tons of cobalt and 4.305 million tons of copper/2.09 million tons of cobalt, respectively. Production increases—copper output grew 65% to 650,000 tons, and cobalt jumped 106% to 114,000 tons in 2024—have fueled its rise. In H1 2025, revenue dipped 7.83% to CNY 94.773 billion, but net profit soared 60.07% to CNY 8.671 billion, highlighting efficiency gains amid the industrial metals surge.
The company’s profitability improvement, with net profit margin rising from 6.16% to 10.39%, underscores its operational leverage. As a global supplier, Luoyang Molybdenum benefits from the industrial metals surge’s demand-side drivers, such as the energy transition and technological advancements. Its story illustrates how the industrial metals surge can transform mid-tier players into market leaders.
Cobalt Market: Policy Impacts and Future Outlook
Cobalt, a critical component in batteries, is experiencing its own surge within the broader industrial metals trend, influenced by regulatory changes.
Congo’s Export Policies and Their Effects
The Democratic Republic of Congo’s recent cobalt export policy adjustments have added momentum to the industrial metals surge. On September 20, 2025, the ARECOMS agency extended an export suspension to October 15 and introduced quota systems. This could lead to sustained supply tightness, elevating cobalt’s price floor. Companies like Huayou Cobalt Co., Ltd., Tengyuan Cobalt Co., Ltd., and Hanrui Cobalt Co., Ltd. have seen gains of up to 80% this year, reflecting the policy’s impact. This subset of the industrial metals surge highlights how geopolitical factors can create investment opportunities.
Analysts predict that cobalt’s medium-to-long-term price equilibrium may shift toward scarcity, prompting a revaluation of related assets. The industrial metals surge thus extends beyond copper to include strategic metals vital for modern technologies. Investors should monitor these policy developments as they could amplify the industrial metals surge’s duration and scope.
Investment Perspective: Where to Look Next
The industrial metals surge presents nuanced opportunities, requiring a strategic approach to capitalize on its phases.
Expert Insights and Analyst Views
Industry professionals like Zhang Teng (张腾) emphasize that the industrial metals surge will unfold in stages: ‘In the first half of the rate-cut cycle, precious metals excel; later, industrial metals open investment windows.’ UBS Group AG has issued reports supporting this view, citing positive macro conditions including U.S. rate cuts, AI trade optimism, and Chinese stimulus. The bank notes that copper and aluminum fundamentals remain attractive, with reduced risks of demand slowdown. This expert consensus reinforces the industrial metals surge as a structured, rather than speculative, movement.
Additionally, small metals like antimony, praseodymium, and neodymium have seen significant price increases, offering ancillary opportunities within the industrial metals surge. Stocks such as Northern Rare Earth Resources Co., Ltd. and Huayu Mining Co., Ltd. have rallied, suggesting that the industrial metals surge is inclusive of niche segments. Investors should consider a diversified approach to harness the full spectrum of this trend.
Valuation Gaps and Opportunities
Sustained Momentum Ahead for Industrial MetalsThe industrial metals surge is poised to continue, supported by enduring supply constraints and macroeconomic tailwinds. Key takeaways include the sector’s resilience, the importance of supply-chain disruptions, and the role of policy in shaping demand. As Federal Reserve easing progresses and China’s reforms deepen, the industrial metals surge could evolve into a multi-year trend. Investors should maintain exposure to quality names like Zijin Mining and Luoyang Molybdenum while monitoring cobalt and other strategic metals for diversification. The current rally likely has further to go, offering ample opportunities for those who act strategically. Stay informed on regulatory announcements and global economic indicators to navigate this dynamic landscape effectively.