Industrial Non-Ferrous Metal ETF Penghua rises over 2.4%, with increased demand and supply risks, leading to a widening aluminum supply and demand gap.

How is geopolitical risk reshaping the aluminum supply landscape?

In terms of news, risk aversion sentiment is rising, leading to a general increase in industrial metals, with London copper prices experiencing the largest increase in nearly two months. Additionally, supply issues resulting from geopolitical situations persist, as India’s Aluminum Industry Company issued a warning to its customers last week regarding the “force majeure” risk of potential supply disruptions due to natural gas shortages.

Guosheng Securities pointed out that ongoing overseas conflicts have caused significant fluctuations in aluminum prices. In the short term, the rise in energy prices due to tensions in the Middle East and the production cut crisis will continue to support aluminum prices. However, domestic fundamentals are bearish, particularly with expectations of rising social inventory of aluminum ingots, which will somewhat suppress spot aluminum prices. It is expected that short-term spot aluminum prices will run with fluctuations. In the medium to long term, the global macro positive sentiment combined with the growing demand for aluminum in the electric vehicle, photovoltaic, and power sectors will highlight the rigidity of capacity, allowing aluminum prices to still have upward elasticity.

As of March 24, 2026, 14:25, the Zhongzheng Industrial Nonferrous Metals Theme Index (H11059) surged by 2.22%. Component stocks such as Jincheng Mining rose by 5.78%, Xingye Silver Tin rose by 5.71%, Zijin Mining rose by 4.97%, and other stocks like Baiyin Nonferrous and Luoyang Molybdenum also increased. The Industrial Nonferrous ETF Penghua (159162) rose by 2.41%, with the latest price reported at 0.81 yuan.

The Industrial Nonferrous ETF Penghua closely tracks the Zhongzheng Industrial Nonferrous Metals Theme Index, which selects 30 listed companies with large market capitalizations involved in industries such as copper, aluminum, lead, zinc, and rare earth metals as index samples to reflect the overall performance of the listed companies in the industrial nonferrous metals theme.

Data shows that as of February 27, 2026, the top ten weighted stocks in the Zhongzheng Industrial Nonferrous Metals Theme Index (H11059) are Luoyang Molybdenum, Northern Rare Earth, China Aluminum, Xingye Silver Tin, Xiamen Tungsten, Yun Aluminum, Tongling Nonferrous, China Tungsten High-tech, Jiangxi Copper, and Western Mining, with the top ten weighted stocks accounting for a total of 54.37%.