Colorful ETF Penghua Red Market Rises, Middle East Geopolitical Conflict Intensifies Aluminum Supply Chain Risks

In the news, escalating Middle East geopolitical conflicts are increasing risks in the aluminum supply chain. The shutdowns and transportation disruptions at the two major aluminum plants, Qatalum and Alba, have significantly impacted the global supply landscape. Aluminum night trading closed up 0.17%.

According to China Post Securities, the six Middle Eastern countries account for 9% of global electrolytic aluminum production. Currently, natural gas supply disruptions and shipping blockages at the Strait of Hormuz are weakening the marginal advantage of low-cost capacity. Coupled with soaring electricity costs in Western Europe and other regions due to rising gas prices, the global aluminum electricity consumption per ton is experiencing a moderate upward shift, significantly strengthening cost support for aluminum prices. Although inventories remain high in the short term, a depletion cycle is expected to begin from April, and supply-demand rebalancing may drive aluminum prices higher.

As of 10:00 on March 13, 2026, the China Securities Gold and Nonferrous Metals Industry Index (399395) rose 0.18%. Among its constituents, Minmetals Resources increased by 4.07%, Ganfeng Lithium rose 3.61%, Tianqi Lithium up 3.36%, TENGYuan Cobalt up 2.81%, and Shenhuo Group gained 2.55%. The Penghua Nonferrous ETF (159880) increased by 0.26%, with a latest price of 2.3 yuan.

The Penghua Nonferrous ETF closely tracks the China Securities Nonferrous Metals Industry Index, which is based on the China Securities Industry Classification Standard. It selects 50 securities with prominent scale and liquidity within the nonferrous metals industry as samples, reflecting the overall performance of listed companies in the nonferrous metals sector traded on the Shanghai and Shenzhen markets. It provides the market with an index-based investment target for specific industry segments.

Data shows that as of February 27, 2026, the top ten holdings of the China Securities Nonferrous Metals Industry Index (399395) are Zijin Mining, Luoyang Molybdenum, Northern Rare Earth, Huayou Cobalt, Aluminum Corporation of China, China National Gold Group, Ganfeng Lithium, Shandong Gold, Industrial Silver and Tin, and Xiamen Tungsten. These ten stocks account for a total of 48.78% of the index.

The Penghua Nonferrous ETF (159880) is available through over-the-counter connections (A: 021296; C: 021297; I: 022886).