The non-ferrous metals market showed initial strength in 2025, and entered a “booming phase” right at the start of 2026 without any gradual warm-up. Gold, silver, and platinum have taken the lead in price gains; base metals such as copper and aluminum have followed steadily; and rare metals including lithium and tungsten have rallied across multiple sectors. A spectacular market rally is now in full swing. In our view, the current upsurge in non-ferrous metals is no accident. It is driven jointly by three major forces: the macroeconomic environment, the supply-demand structure, and industrial transformation. First, loose global liquidity serves as the core macro driver of this round of non-ferrous metals rally. Internationally, most non-ferrous metals are priced in US dollars. Expanded liquidity has pushed down the US dollar index, boosted the purchasing power of non-dollar holders, and underpinned the valuation of metal prices. Gold, as an inflation-hedging and value-preserving asset, has become the top choice for capital, while silver has seen a strong catch-up rally thanks to its industrial attributes. Meanwhile, improved domestic liquidity has further strengthened the resilience of the market. Since the beginning of 2026, the People’s Bank of China has launched a “package of measures” to optimize liquidity: it has strengthened the funding base by increasing outright reverse repos and MLF operations, while carrying out 7-day reverse repos on a regular basis. It has also cut interest rates on structural tools such as re-lending and rediscounting, expanded quotas and coverage for supporting agriculture, small and micro enterprises, technological innovation and technical transformation, directing liquidity to key areas and weak links. Meanwhile, there remains room for further cuts in reserve requirement ratios and interest rates. These measures have eased funding pressure across industrial chains, stimulated real-sector demand, and provided support for metals including copper, aluminum and lithium. Second, the structural restructuring of the global non-ferrous metals supply-demand pattern provides fundamental support for price increases. On the supply side, global mining capital expenditure has continued to decline over the past five years, and capacity expansion has fallen far short of market expectations. According to the *Global Mining Development Report 2025* released by the International Mining Research Center of the China Geological Survey under the Ministry of Natural Resources, global exploration investment, drilling activities and large-scale mining projects have kept declining. On the demand side, a new round of upgrading driven by both traditional and emerging growth engines is underway. The rapid expansion of AI computing centers, accelerated industrialization of commercial aerospace, and full-scale upgrading of national power grids have become core sources of incremental demand for non-ferrous metals. Taking AI computing as an example, data from the Copper Development Association (CDA) shows that at a conservative copper intensity of 27 kilotones per gigawatt of data center power load, new data centers alone will consume 460,000 tonnes of copper in 2026. It is clear that the deepening supply-demand mismatch has laid a solid fundamental foundation for higher non-ferrous metals prices. Third, the rising strategic status of non-ferrous metals has driven a value revaluation of the sector. Amid global technological competition and industrial upgrading, non-ferrous new materials such as rare earth permanent magnets, superalloys, and third-generation semiconductor materials have become critical pillars for high-end manufacturing and defense technology, with strategic value far beyond that of traditional bulk commodities. This strategic nature not only enables non-ferrous metals to transcend traditional economic cycles but also places them at the core of each country’s industrial chain security strategy. Overall, the three core drivers supporting the non-ferrous metals market remain firmly in place, and the resilience of the sector is likely to persist amid multiple positive factors. At the same time, however, investors should note that excessive short-term gains may trigger periodic corrections, and uncertainties remain regarding the pace of global economic recovery and geopolitical changes. For market participants, rather than chasing short-term rallies, it is more advisable to focus on supply-demand fundamentals and long-term industrial trends, and navigate the volatility amid the industry’s upward cycle. [Data source: Compiled from public information]