Base Metals Crash: Copper, Aluminum, Tin Plunge as China's Market Shifts

• Copper, aluminum, and tin experienced sharp declines, with copper falling 5.7% on the London Metal Exchange to $12,414.50 per ton.
• The January rally was fueled by Chinese investors seeking alternatives to the dollar, but a shift occurred after a hawkish US Fed nominee.
• Forced stop-losses triggered a chain reaction, accelerating the price decline across various metals.
• Real demand remains weak in China, with industrial fabricators showing low purchasing activity, exacerbated by Lunar New Year preparations.
• Despite short-term volatility, some analysts believe copper is entering a new 'super-cycle' and see current dips as investment opportunities.

Why It Matters: Base metals crashed due to a combination of shifting investor sentiment, weak real demand in China, and triggered stop-losses.