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?

By Daily Economic News reporter | Zhang Hong    Edited by Daily Economic News | Liao Dan

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

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

Image source: National Bureau of Statistics website

A reporter from The Daily Economic News (hereinafter referred to as a Daily Economic News reporter) noted that in the first two months of this year, profits in related industries such as nonferrous metals, chemicals, and semiconductors surged sharply. Regarding the reasons behind the sharp profit surge in the above industries and whether it is sustainable, the Daily Economic News reporter conducted interviews.

Profit spikes in raw-material segments such as nonferrous metals

Specifically, from January to February, profits in the nonferrous metals industry grew by 148.2%. Within that, profits in the aluminum rolling and processing industry, the nonferrous metal alloy manufacturing industry, and the copper rolling and processing industry increased by 264.0%, 205.1%, and 50.8%, respectively. Profits in the chemicals industry rose by 35.9%. Within that, profits in the inorganic salt manufacturing, inorganic acid manufacturing, and organic fertilizer and microbial fertilizer manufacturing industries increased by 518.5%, 306.3%, and 38.5%, respectively.

Which industries are these raw materials related to?

Guotai Fund Management Co., Ltd., in an interview with the Daily Economic News reporter, said that in terms of industries, aluminum rolling and processing products mainly serve new-energy vehicle lightweighting, photovoltaic frames, building profiles, and power cables; copper rolling and processing corresponds to power infrastructure, AI data centers, new-energy electric drive systems, and consumer electronics; nonferrous alloys are linked to aerospace, defense industries, and the manufacture of high-end equipment. In the chemicals segment, 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.

Are these profit gains driven by more orders, or by changes in costs or prices?

Guotai Fund Management Co., Ltd. said that on the drivers, the logic behind the two industries differs.

The nonferrous metals industry’s profit spike is mainly “price-driven”—with electrolytic aluminum capacity nearing a ceiling of 45 million tons per year, and copper ore supply continuing to be disrupted, combined with new demand from emerging areas such as new energy and AI, the central aluminum and copper price levels have risen significantly versus the same period last year, and the price spread in the processing segment has expanded markedly.

The chemicals industry, meanwhile, benefits more from the “low base + cost improvement” resonance. In the same period of 2025, the chemicals industry was caught in an oversupply predicament characterized by “increased volume but reduced profits,” with very thin profit bases for inorganic salts and inorganic acids. This year, the central shift downward in upstream coal and crude oil prices alleviates cost pressure, while the “anti-involution” policy promotes industry production cuts to protect prices and speeds up market clearing, helping to repair product price spreads.

Overall, the contribution of order volume expansion to profits in 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 the high-tech manufacturing sector, from January to February, profits in the electronics industry and in the semiconductor discrete device manufacturing industry increased by 203.5% and 130.5%, respectively, year over year. What is the reason for the significant profit growth?

Regarding the reasons for the large 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, with inventory digestion and a demand off-season, resulting in a relatively low profit base. Second, demand-side momentum: especially continued volume expansion in demand for AI servers, high-performance computing, and automotive electronics for power devices and discrete devices, which provides stable order support for discrete device manufacturing. Products have also seen price increases to varying degrees, which adds some incremental contribution to profits.

Is this growth sustainable? In response, Guotai Fund Management Co., Ltd. said that although the figures for growth rates may change somewhat with last year’s base, the industry-wide logic for improvement remains unchanged. As the ongoing deepening of intelligent transformation and the electrification of energy electronics continues, the semiconductor industry has gradually moved out of the low point and entered a new round of upcycle. In the future, growth momentum will be driven more by structural opportunities from technological innovation and downstream application fields, rather than simply by fluctuations in the base. Overall, the operating trend remains steady and robust.

Cover image source: Daily Economic News media database