Tianhong Non-Ferrous Metals ETF (159157) has consecutively attracted funds for 35 days, accumulating over 5.3 billion yuan. Morgan Stanley analysts expect aluminum prices to face upward risks this year.

Yesterday (April 7), all three major A-share indexes closed higher as a group, while the nonferrous metals sector was active throughout the day. As of yesterday’s close, the CSI Industrial Nonferrous Metals Thematic Index rose 1.78%. Among constituent stocks, Shenghe Resources rose more than 6%, while Tianshan Aluminum, Northern Rare Earth, Shenhuo Shares, China Rare Earth and others led in gains.

Among popular ETFs, the Nonferrous Metals ETF Tianhong (159157) saw sustained intraday strength yesterday, with a full-day trading volume of RMB 169 million, a modest increase versus the previous trading day.

Wind data shows that the ETF received net subscriptions of nearly 90 million units yesterday. In terms of fund flows, as of April 3, since its listing, the ETF has recorded net inflows for 35 consecutive trading days, accumulating “attracting capital” of over RMB 5.3 billion.

The Nonferrous Metals ETF Tianhong (159157) is an ETF product in the market that tracks the CSI Industrial Nonferrous Metals Thematic Index, offering limited availability. It provides investors with a one-stop, efficient solution for positioning in this space. Over-the-counter investors can access opportunities to ride the synchronization of the broader cycle and policy dividends via a connection fund (Class A: 017192; Class C: 017193).

On the news front, according to Jiemian News, on April 7, a Morgan Stanley analyst said that aluminum supply losses caused by the conflict in the Middle East may persist until 2026. The firm said that restarting affected operations (about 4% of global supply) may take up to 12 months. Therefore, the Morgan Stanley analyst believes that “aluminum prices in 2026 face upside risk.”

CITIC Securities said that when looking back at the 2021–22 energy crisis, the maximum rally in aluminum prices and the sector reached 60%/100%. Looking ahead, concerns about supply in the aluminum industry chain warming up could drive prices to rise beyond our prior expectations. Combined with the sustained strength of the long-term supply-and-demand logic in the aluminum industry, we continue to favor a scenario in which aluminum-sector prices and valuations rise together.