Friday, March 12, 2010

Teck Resources (NYSE:TCK) Drops on China Inflation

Teck Resources China Inflation

The news that inflation had reached a 16-month high in China February, had a strong effect on the prices of metals, and Teck Resources (NYSE:TCK) partook in the negative response, getting rocked with a 1.4 percent hit to its stock price.

Many metals fell on the China inflation news, primarily on concerns China will tighten its monetary policy to cool of its economy even more, which would imply demand for raw materials could drop from what was expected.

Teck Resources is one of the largest base-metals producers in the world, and could get rocked if China cuts back in a big way, although that's not a certainty, although it would be more costly to do business there.

Teck has somewhat of a cushion though, as only 10 percent of its overall revenue comes from Asia, making them not as vulnerable as some other metals producers could be.

Teck Resources China Inflation

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