Editor’s Note
HSBC Research reports a robust start for commodities in 2026, with metals leading gains. While volatility persists, the bank maintains a cautiously optimistic outlook, advocating for a selective investment approach.
HSBC Research published a report noting that commodities, especially metals, have had a strong start in 2026, with the CRB Metals Index rising by 10%. After a brief consolidation and a spike in volatility, the bank remains optimistic but will adopt a selective deployment strategy.
HSBC’s Metals and Mining team favors commodities with structural demand drivers and constrained supply-side capacity, with copper, aluminum, precious metals, and battery raw materials standing out. The bank believes this commodity cycle is built on four enduring pillars: 1) Artificial Intelligence and Data Centers; 2) Electric Vehicle Demand; 3) Energy Storage Systems; 4) De-dollarization Theme and Safe-Haven Demand.
HSBC Research expects rising commodity prices to have positive spillover effects on industries beyond mining, particularly in markets with a high share of mining employment, high resource rents as a percentage of GDP, and improving terms of trade and currency strength. Measured by these indicators, Chile, South Africa, Indonesia, and Brazil are best positioned to benefit from a multiplier effect, spreading to banks, retailers, and local cyclical industries.
The bank’s analysts highlighted six favored stocks for investment themes in metals and mining, including Zijin Mining (02899.HK), Freeport-McMoRan (FCX.US), Vale (VALE.US), Sibanye Stillwater, Northam Platinum, and African Rainbow Minerals (ARM.US).