Non-ferrous metals surged by 148.2%, electronics skyrocketed by 203.5%! The National Bureau of Statistics released data showing that in the first two months, profits in these industries soared. Why?

Every Daily News reporter｜Zhang Hong    Every Daily News editor｜Liao Dan

On March 27, the National Bureau of Statistics released profit data for industrial enterprises above a designated size for January to February.

From January to February, the profits of industrial enterprises above a designated size nationwide increased by 15.2% year over year, with the growth rate accelerating by 14.6 percentage points compared with the full year of the previous year.

Image source: National Bureau of Statistics website

A reporter with The Paper Daily Economic News (hereinafter referred to as the Every Daily News reporter) noticed that in the first two months of this year, related industries such as non-ferrous metals, chemicals, and semiconductors saw a surge in profits. The Every Daily News reporter conducted interviews to explore the reasons behind the profit surge in the aforementioned industries and its sustainability.

Profit spikes in raw material sectors such as non-ferrous metals

Specifically, in January to February, profits in the non-ferrous metals industry grew by 148.2%. Within that, profits in the aluminum rolling and processing segment, non-ferrous metal alloy manufacturing, and copper rolling and processing segments increased by 264.0%, 205.1%, and 50.8%, respectively. Profits in the chemical industry grew by 35.9%, including a 518.5% increase in profits for inorganic salt manufacturing, 306.3% for inorganic acid manufacturing, and 38.5% for organic fertilizer and microbial fertilizer manufacturing.

Which industries are these raw materials tied to?

Guotai Fund Management Co., Ltd., in an interview with the Every Daily News reporter, said that in terms of industry applications, aluminum rolling and processing products mainly serve light-weighting in new energy vehicles, photovoltaic module frames, building materials for construction, and power cables. Copper rolling and processing corresponds to power infrastructure, AI data centers, new energy electric-drive systems, and consumer electronics. Non-ferrous alloys are linked to aerospace, defense industries, and the manufacture of high-end equipment. In the chemical sector, inorganic salts are key raw materials for glass, photovoltaics, and lithium batteries; inorganic acids are widely used in metal smelting, fertilizer production, and semiconductor cleaning; organic fertilizers and microbial fertilizers directly serve green agriculture and soil improvement.

Is their profit growth driven by increased orders, or by changes in costs or prices?

Guotai Fund Management Co., Ltd. said that the driving factors differ somewhat between the two industries.

The profit surge in the non-ferrous metals industry is mainly “price-driven”—electrolytic aluminum production capacity is approaching the 45 million-tonne-per-year ceiling, copper ore supply has remained disrupted, and this is compounded by new demand from areas such as new energy and AI. The aluminum and copper price benchmark has been lifted significantly versus the same period last year, and the spread in processing margins has widened markedly.

The chemical industry, on the other hand, benefits more from the resonance of “a low base plus cost improvement.” In the same period of 2025, the chemical industry was trapped in an oversupply situation of “volume growth but profit decline,” with very thin profit bases for inorganic salts and inorganic acids. This year, the shift downward in the price benchmarks of upstream coal and crude oil has eased cost pressure, while “anti-overcrowding” policies have pushed the industry to reduce output to stabilize prices and accelerate market clearing, helping product price spreads to recover.

Overall, the contribution of increased order volumes to profits for the two industries is relatively limited; changes in prices and costs are the core driving forces.

Electronic industry profits surge by more than 2x

In high-tech manufacturing, in January to February, profits in the electronics industry and in the semiconductor discrete devices manufacturing industry increased by 203.5% and 130.5% year over year, respectively. What are the reasons behind such significant profit growth?

Regarding the reasons for the sharp increase in profits, Guotai Fund Management Co., Ltd. said, first, there is the low-base effect. In the same period last year, the industry was at the bottom of a cycle characterized by inventory drawdown and a seasonal lull in demand, meaning the profit base was relatively low. Second, demand-side support has been a key driver—especially sustained expansion in demand for AI servers, high-performance computing, and automotive electronics for power devices and discrete devices, providing stable order support for discrete devices manufacturing. Products have also risen in price to varying degrees, bringing some incremental gains to profits.

Is the growth sustainable? In response, Guotai Fund Management Co., Ltd. said that although the growth rate numbers may change somewhat with the prior-year base, the overall logic of the industry remaining favorable will not change. As the intelligent transformation and electrification of energy electronics continue to deepen, the semiconductor industry has gradually moved out of the doldrums and entered a new round of an upcycle. In the future, the growth momentum will be driven more by structural opportunities from technological innovation and downstream application areas, rather than simply fluctuations in the base. The overall operating trend remains steady and robust.

Cover image source: Every Daily Economic News media database