Industrial Non-Ferrous Metal ETF Penghua rises over 1.2%, Middle East electrolytic aluminum supply disruptions exceed expectations

The Iran-U.S. conflict continues to escalate, and disruptions to Middle East electrolytic aluminum supply are significantly greater than market expectations. On the news front, on April 4, the Iranian military issued a communiqué stating that on that day, the Iranian forces carried out strikes with drones against multiple U.S. military targets in Gulf states such as Kuwait. The communiqué said the strike targets also included aluminum industrial facilities in the United Arab Emirates.

CITIC Construction Investment Securities noted that the Tavira smelter under EGA in the United Arab Emirates has been forced to shut down entirely due to missile attacks. In 2025, its production is expected to reach 1.6 million tons; preliminary estimates suggest that a full restart may require up to 12 months. Combined with QatarEnergy cutting back production by 0.265 million tons and Bahrain Aluminium reducing production by 0.3 million tons, confirmed reduced-capacity production totals 2.17 million tons (accounting for 2.89% globally), while the market has not yet fully priced in this supply shortfall. With the traditional peak consumption season beginning and domestic inventory destocking accelerating, electrolytic aluminum is becoming an industrial metal type with offensive attributes.

As of 13:41 on April 7, 2026, the CSI Industrial Nonferrous Metals Theme Index (H11059) surged 1.47%. Among constituent stocks, Tian Shan Aluminum rose 5.09%, Shenhuo Shares rose 4.03%, DianTou Energy rose 4.02%, and individual names such as Sinochem Tungsten & High-Tech and Northern Rare Earth also moved higher in sympathy. The Penghua Industrial Nonferrous Metals ETF (159162) rose 1.21%, with the latest price at 0.84 yuan.

The Penghua Industrial Nonferrous Metals ETF closely tracks the CSI Industrial Nonferrous Metals Theme Index. The CSI Industrial Nonferrous Metals Theme Index selects securities of 30 large-cap listed companies whose businesses involve copper, aluminum, lead-zinc, rare-earth metals, and other sectors as index samples, to reflect the overall performance of listed-company securities tied to the industrial nonferrous metals theme.

Data shows that as of March 31, 2026, the top 10 weighted stocks of the CSI Industrial Nonferrous Metals Theme Index (H11059) were Luoyang Molybdenum, Northern Rare Earth, China Aluminum, Yunnan Aluminum, Xiamen Tungsten, Xingye Silver and Tin, Tian Shan Aluminum, Shenhuo Shares, Tongling Nonferrous, and Dongyangguang. The combined weight of the top 10 weighted stocks was 54.07%.