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 reporter｜Zhang Hong Every editor｜Liao Dan

On March 27, the National Bureau of Statistics announced the profit data for large-scale industrial enterprises for January and February.

From January to February, the profits of large-scale industrial enterprises nationwide increased by 15.2% year-on-year, with the growth rate accelerating by 14.6 percentage points compared to the entire previous year.

Image source: National Bureau of Statistics official website

Every reporter (hereinafter referred to as “Every reporter”) noticed that in the first two months of this year, profits in related industries such as non-ferrous metals, chemicals, and semiconductors surged. Regarding the reasons for the profit surge in these industries and its sustainability, Every reporter conducted interviews.

Surge in profits in raw materials sectors

Specifically, from January to February, the profit growth in the non-ferrous metals industry was 148.2%, with profits in the aluminum rolling processing, non-ferrous metal alloy manufacturing, and copper rolling processing industries increasing by 264.0%, 205.1%, and 50.8%, respectively; the chemical industry’s profits grew by 35.9%, with profits in the inorganic salt manufacturing, inorganic acid manufacturing, and organic fertilizers and microbial fertilizers manufacturing industries increasing by 518.5%, 306.3%, and 38.5%, respectively.

Which industries are these raw materials related to?

Guotai Asset Management Co., Ltd. stated in an interview with Every reporter that in terms of industries, aluminum rolling products mainly serve lightweighting of new energy vehicles, photovoltaic frames, building profiles, and power cables; copper rolling processing corresponds to power infrastructure, AI data centers, new energy electric drive systems, and consumer electronics; non-ferrous alloys are linked to aerospace, military industry, and high-end equipment manufacturing. 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 the profit growth due to increased orders, or changes in costs or prices?

Guotai Asset Management Co., Ltd. stated that the driving factors differ 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 ton ceiling, and copper mine supply continues to be disrupted. Coupled with emerging demands from new energy and AI, the price center for aluminum and copper has significantly risen compared to the same period last year, and processing margins have notably widened.

The chemical industry benefits more from the resonance of “low base + cost improvement.” In the same period in 2025, the chemical industry is in an overcapacity dilemma of “increased volume with reduced profits,” with very thin profit bases for inorganic salts and inorganic acids; this year, the decline in upstream coal and crude oil price centers alleviated cost pressures, while “anti-involution” policies promoted production cuts to maintain prices and accelerated clearance, restoring product price differences.

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

Profits in the electronics industry more than double

In the high-tech manufacturing sector, from January to February, profits in the electronics industry and semiconductor discrete device manufacturing industry grew by 203.5% and 130.5% year-on-year, respectively. What are the significant reasons for this profit growth?

Regarding the reasons for the large profit increase, Guotai Asset Management Co., Ltd. stated that, first, it is due to the low base effect; the industry was at the bottom of the cycle last year during periods of inventory destocking and off-peak demand, resulting in a low profit base. Second, demand-side growth, especially from AI servers, high-performance computing, and automotive electronics, continues to boost demand for power devices and discrete devices, providing stable order support for discrete device manufacturing. Products have also been subject to price increases to varying degrees, contributing to profit increments.

Is the growth sustainable? In response, Guotai Asset Management Co., Ltd. stated that although the growth rate may vary with last year’s base, the overall logic of the industry remains positive. With the continuous deepening of intelligent transformation and energy electrification, the semiconductor industry has gradually emerged from its low point and entered a new upward cycle. Future growth momentum will be driven more by technological innovation and structural opportunities in downstream application areas rather than purely by base fluctuations, and the overall operational trend remains robust.

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