China’s industrial surge sparks rally in European mining stocks

Investing.com -- European mining companies are enjoying a strong rally, buoyed by China’s renewed industrial momentum and policy shifts that are driving global demand for critical raw materials. 

A sharp rebound in Chinese manufacturing, particularly in high-tech and green sectors, has led to rising commodity prices and boosted investor confidence, directly benefiting mining firms across Europe with global market exposure.

Shares of Aurubis, Thyssenkrupp (ETR:TKAG), SSAB, ArcelorMittal (NYSE:MT), Salzgitter (ETR:SZGG), Voestalpine (LON:0MKX), Aperam (AS:APAM), Vallourec (EPA:VLLP), Rio Tinto (NYSE:RIO) and Eramet (EPA:ERMT) were up between 2.7% and 7.1% as of 5:45 ET (10:45 GMT).

Recent data from China’s National Bureau of Statistic underscores the strength of this resurgence. 

Value-added industrial output for large enterprises rose by 6.8% year-on-year, exceeding expectations and accelerating from previous months. 

This performance brings the cumulative growth rate for the first half of 2025 to 6.4%, marking a solid recovery trajectory.

At the heart of this revival is China’s industrial vision, transitioning from the "Made in China 2025" initiative to a more advanced iteration, "Made in China 2.0." This updated framework emphasizes self-reliance and innovation in key sectors such as electric vehicles, robotics, renewable energy, and information technology. 

The industrial push is already delivering tangible output gains. In the first half of 2025, production of new energy vehicles (NEVs) surged 36.2% year-on-year, while industrial robot output climbed by 35.6%. 

China’s leadership in renewable energy equipment remains firm, with continued global dominance in lithium-ion battery and solar module manufacturing. 

Meanwhile, production in computer, communication, and electronic equipment rose 11% year-on-year in June alone.

This high-tech, green transformation has unleashed a significant appetite for raw materials. 

China’s industrial upgrade demands a steady and growing supply of both traditional base metals, such as copper, iron ore, aluminum, and zinc, and critical minerals like lithium, cobalt, nickel, and rare earth elements. 

These materials are essential for building batteries, wind turbines, electric motors, and the digital infrastructure supporting smart technologies.

For European mining companies, this industrial surge in China is translating into real gains.

Rising demand is pushing up global commodity prices, particularly for metals critical to energy transition and digitalization. 

Coupled with higher sales volumes, this has improved the revenue outlook for miners, especially those involved in the extraction and processing of battery-grade materials and base metals. 

The broader market sees China’s industrial acceleration as a stabilizing force in an otherwise uncertain global economic landscape. 

Although geopolitical tensions, particularly between the U.S. and China, pose potential risks to supply chains, and domestic economic issues in China such as overcapacity or structural rebalancing may create headwinds, the overall demand trajectory remains strong.