CITIC Securities: Technology and Scarcity Resonance, Strategic Metals and New Materials Experience Strong Growth

CITIC Securities Research reports state that the U.S. dollar credit cycle combined with the Kondratiev wave cycle (technology) supports a significant rise in non-ferrous metal prices. However, this cycle of non-ferrous metals also has notable features different from the past: First, due to supply rigidity and demand resilience, this cycle’s non-ferrous metal fluctuations have greatly weakened, profitability stability has significantly increased, and valuation of equity assets should rise. Second, driven by explosive technological demand, small metals are highly elastic in this cycle, and new material companies with global competitiveness are experiencing explosive growth. Currently, besides precious metals and industrial metals, special attention should be paid to new productive elements, especially rhenium, uranium, tin, nickel, etc., and also to new material companies with global niche competitiveness, such as AI chip inductors, AI chip capacitors, as well as investment opportunities brought by the explosion of MIM and powder metallurgy processes in robotics.