Small metals surge forward: 12 stocks up over 50% this year, with the top performer soaring over 180%

Precious metals continue to surge. On February 27th, the small metals sector rose again, closing the morning session with a surge of 6.39%. Among the constituent stocks, Dongfang Zirconium, Xianglu Tungsten, Zhongxi Youse, Zhangyuan Tungsten, and Baowu Magnesium hit the daily limit. Xiamen Tungsten rose over 8%, Baoti, Yunnan Germanium, Zhongtung High-tech gained over 7%, while Tin Industry, Guoyan Platinum, Huaxi Nonferrous, Jintian Titanium, and Jindian Copper all increased by more than 6%.

In terms of news, recently, the China Minmetals Chemical Import and Export Chamber of Commerce announced that a seminar on rare earth and rare metal export policies and trends will be held on March 25, 2026. The notice states that leaders from the Ministry of Commerce and the General Administration of Customs will be invited to participate and speak, providing interpretations on export policies and trends for relevant products. This will also help government departments understand the challenges faced by enterprises in exports.

Small metals prices collectively soar

Affected by supply and demand, the prices of rare earths and small metals have been rising steadily recently, with a notable upward trend. Data shows that after the Spring Festival, tungsten raw material prices continued to surge, with tungsten powder surpassing 1,800 yuan per kilogram. Prices of praseodymium-neodymium metals increased by 50,000 yuan to 1.08 million yuan per ton, praseodymium-neodymium oxides rose by 5,000 yuan to 882,500 yuan per ton, and molybdenum concentrate increased by 280 yuan to 4,415 yuan per ton.

The reason small metals can move independently is mainly due to their strategic importance and supply-demand logic that differ fundamentally from base metals. Base metals have strong financial attributes and are highly sensitive to global macroeconomic conditions and interest rate expectations. Recent corrections are mainly due to macroeconomic sentiment disturbances, such as the reshaping of Federal Reserve policy expectations. In contrast, the pricing of small metals is driven by their unique strategic position and rigid supply constraints.

Shi Jia, an analyst at Shanghai Steel Union’s Ferroalloy Division, pointed out that as international geopolitical conflicts intensify and domestic industries move toward higher quality development, the rapid growth of new energy and new materials industries has significantly increased demand for small metals. Coupled with the longer development cycle and more restrictions on domestic small metal mineral resources, there is a large mismatch between raw materials and demand.

BOC Securities noted that by 2026, as the market enters the second phase of a bull market—driven by profit growth— the strong cyclical nature of non-ferrous metals is expected to be reflected under the influence of “countering involution” and expanding domestic demand. Meanwhile, financial attributes and industry trends will present revaluation opportunities for the sector.

12 stocks have gained over 50% this year

The capital market is highly enthusiastic about the concept of small metals. According to data from Eastmoney Choice, from the beginning of 2026 to now, the small metals sector has shown increasingly strong gains. As of the close on February 27th, the Shenwan Small Metals Industry had a year-to-date increase of 49.33%, ranking first among 124 Shenwan secondary industries.

Data shows that among the 25 constituent stocks of the Shenwan Small Metals Industry, all saw stock price increases this year, with a median gain of 42.42%. Among them, 12 stocks have already gained over 50% year-to-date. Xianglu Tungsten, Zhangyuan Tungsten, and Zhongtung High-tech have doubled in value, with cumulative gains of 187.41%, 186.32%, and 133.42%, respectively.

However, after continuous large gains, the small metals sector has entered a high valuation zone, which warrants investor attention. Data shows that, based on the Shenwan Secondary Index for small metals, the current Price-to-Earnings ratio (PE, TTM) is 77.5, in the 74.9th percentile historically; the Price-to-Book ratio (PB, MRQ) is 6.28, in the 84.09th percentile historically.

(Source: Eastmoney Research Center)