Oil prices exceeding expectations may trigger even stronger risk-averse sentiment, as Yunnan Geology & Mineral Resources soars to the daily limit and hits a new high.

(Source: Finance News)

          As a commodity with strong macro attributes, non-ferrous metals are under significant pressure. The long-term bullish view on non-ferrous resources remains unchanged. Adjustments present a good opportunity for accumulation.            

On March 27, the small metal sector continued to rise, with Yunnan Tin Company (002428.SZ) hitting the daily limit and reaching a new high, followed by Xianglu Tungsten (002842.SZ), Zhangyuan Tungsten (002378.SZ), Zhongkuang Resources (002738.SZ), Huaxi Nonferrous (600301.SH), and China Rare Earth (000831.SZ) all rising.

On the news front, due to external uncertainties regarding the prospects of negotiations between the U.S. and Iran, market concerns about oil supply have intensified. On March 26, international crude oil futures prices surged significantly. The price of light crude oil futures for May delivery on the New York Mercantile Exchange closed at $94.48 per barrel, an increase of 4.61%; the price of Brent crude oil futures for May delivery closed at $108.01 per barrel, an increase of 5.66%.

According to a research report from China Merchants Securities, the escalation of the Iran conflict has led to a continuous rise in oil prices. Market panic has resulted in a sell-off of risk assets. On Thursday night, metal prices plummeted, and downstream buyers were actively pricing, raising discussions in the market reminiscent of early April last year. The geopolitical conflict is unpredictable, and expectations for U.S. interest rate cuts are constantly being delayed, making the current environment quite different from that of April last year. As the conflict continues to escalate and oil prices exceed expectations, it may trigger even more intense risk-averse sentiment. The rhythm is dominated by the Iran conflict. As a commodity with strong macro attributes, non-ferrous metals are under significant pressure. The long-term bullish view on non-ferrous resources remains unchanged. Adjustments present a good opportunity for accumulation.

Bohai Securities stated that the performance of listed companies will gradually be disclosed in March, and the market may enter a phase of verifying industry fundamentals and company fundamentals. The overseas U.S.-Israel conflict regarding Iran will be an important variable affecting risk-averse sentiment, and attention should be paid to changes in the geopolitical situation. In terms of specific sectors, the gold sector is supported by factors such as central bank gold purchases, geopolitical conflicts, and “de-dollarization”; the copper sector is driven by insufficient copper supply combined with AI and new energy demand; the aluminum sector is impacted by short-term obstacles to Middle Eastern aluminum exports; the lithium sector may accelerate global energy transition expectations amid uncertainties in oil supply; and the rare earth and tungsten sectors possess strategic resource attributes in the context of frequent global geopolitical events.

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