【Comprehensive Investment Guide to Six Scarce Metals】The trump card for the next five years will undoubtedly be minor metals—because the ultimate frontier of technological advancement is materials.

【A-Share Core Stocks】・Baowu Magnesium Industry (002182.SZ): Buy the 'moat' of global pricing power and production capacity ・Rationale: Investing in commodities always follows the principle of 'he who controls resources, controls the game.' Baowu Magnesium Industry (formerly Yunhai Metals) operates a fully integrated closed-loop system—from dolomite mining and primary magnesium smelting to magnesium alloy deep processing. China accounts for 85% of global magnesium output, and Baowu Magnesium Industry is China’s undisputed production leader. When downstream demand surges—for example, in automotive steering column frames or structural components for low-altitude aircraft—driving up primary magnesium prices, midstream processors face soaring costs. Yet Baowu, with its own mines, enjoys extremely low marginal costs; nearly every uptick in magnesium prices translates directly into pure profit. Backed by Baowu Iron and Steel Group, it overcomes the most daunting financing bottleneck for heavy-asset expansion—making it the absolute core holding for institutional investors positioning in the lightweighting cycle. ・Wanfeng Auto Holding (002085.SZ): Buy the valuation multiplier for eVTOL ・Rationale: While Baowu earns hard-won margins from raw material sales, Wanfeng captures premium manufacturing value-added. Its core business is 'Meridian,' the world’s largest supplier of magnesium alloy automotive die-cast components. Its true growth catalyst lies in the low-altitude economy: flying cars are over ten times more weight-sensitive than new-energy vehicles, making large-scale magnesium alloy adoption inevitable. Through deep partnerships with leading eVTOL OEMs, Wanfeng has transformed itself from a traditional auto parts stock into a core technology stock of the low-altitude economy. Buying it is a bet on a dramatic re-rating of its price-to-earnings (P/E) multiple. ・Xingyuan Zhuomagnesium (301398.SZ): A high-beta, small-cap 'hidden champion' in precision die-casting favored by retail traders ・Rationale: Specializing in high-strength magnesium alloy precision die-cast components, it maintains deep ties with several top-tier new-energy vehicle makers. Due to its relatively small free-float market capitalization, its earnings growth and stock price elasticity respond explosively to acceleration in magnesium alloy penetration rates—or to supportive lightweighting industrial policies. It serves well as a tactical, high-conviction swing trade. 【Hong Kong Core Stocks】・Minth Group (00425.HK): A global heavyweight in automotive lightweight structural components ・Rationale: The Hong Kong market lacks pure-play magnesium mining stocks, but Minth Group epitomizes high-end manufacturing that pushes magnesium-aluminum alloys to their limits. While domestic Chinese automakers engage in fierce competition, Minth has long secured entry into the core global supply chains of BMW, Mercedes-Benz, and Volkswagen. Its key growth driver over the next three years lies in massive volume ramp-up of its magnesium/aluminum alloy battery enclosures and high-strength lightweight structural components, driven by rising global EV penetration. Its fundamentals are rock-solid—ideal for investors prioritizing international broker ratings and stable dividend payouts. 【U.S. Core Stocks】・Alcoa Corporation (AA.US): The macro proxy for North American lightweight metals ・Rationale: Though primarily an aluminum producer, Alcoa serves as the most direct macro instrument on U.S. markets for betting on 'metal lightweighting' and 'manufacturing reshoring.' Magnesium and aluminum frequently appear together as alloy partners in industrial applications. Amid intensifying deglobalization, rebuilding North America’s new-energy vehicle supply chain demands vast quantities of lightweight metals. Buying Alcoa is essentially betting on North American industrial revival and a rebound from the inflationary bottom. ・Howmet Aerospace (HWM.US): The global heavyweight dominating lightweight alloys for aerospace ・Rationale: A world-class aerospace and defense materials giant spun off from Alcoa, Howmet supplies indispensable structural components for Boeing, Airbus, and U.S. military fighter jets. Against the backdrop of booming low-altitude mobility and commercial spaceflight, it represents the highest technical barriers—and most lucrative profit margins—in global lightweight materials. Its earnings remain insulated from short-term fluctuations in commodity spot prices, instead deriving premium pricing power from advanced technologies embedded in jet engines and airframe structures.

Iranian hostilities disrupt the global aluminum supply chain; the Middle East’s top aluminum producer suspends smelting operations.

Against the backdrop of escalating Middle Eastern tensions, Iran’s strikes against critical industrial infrastructure across the Gulf region have begun impacting global commodity markets. According to reports released on Wednesday, April 1, following missile and drone attacks on its facilities over the weekend, Emirates Global Aluminium (EGA)—the Middle East’s largest aluminum producer—has suspended operations at its primary smelter in Abu Dhabi. Upon news of the shutdown, London Metal Exchange (LME) aluminum futures surged nearly 2% intraday and closed up approximately 1.9%, hitting a four-year high. Prices for other industrial metals—including copper—also rose in tandem, signaling that markets are beginning to price in broader supply risks. Alcoa Corporation (AA) shares expanded gains sharply during early U.S. trading and closed up over 8.6%—having briefly spiked 8.8% near session close—while fellow U.S. aluminum producer Century Aluminum (CENX) closed up 8.2%.

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