Tuesday, May 18, 2010

Teck Resources (NYSE:TCK), Potash (NYSE: POT) Rebound

Potash (NYSE:POT) (TSE:POT) and Teck Resources (NYSE:TCK) (TSE:TCK-B) have rebounded nicely so far today, getting clobbered in Monday trading, as the market continues to digest the implications of the EU debt crisis and the China inflation concerns.

Teck Resources was up just under 5 percent in New York and Toronto, and was especially heavily traded in Toronto.

Potash was up about the same in Toronto and New York as well, gaining just under 1.5 percent as of about 1:00 P.M. EST.

The European debt crisis has crowded out a lot of economic news lately, but the China story has to be considered by investors as to how deeply they may cut back on imports in response to dealing with their inflation challenges.

Even a cutback of 1 percent with some raw materials or products could make a huge impact on some companies, depending on what raw materials they decide on.

Already the iron ore industry has had to lower prices in response to declining demand, although that is unique in the sense of bitter battles over price points for the material used to make steel. So that could be part of the China strategy to get a lower price.

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