Teck Resources (NYSE:TCK) (TSE:TCK-B) has gained back about two thirds of yesterday's 6 percent loss, as growing concerns over how China's battle with inflation will affect commodity demand.
The EU debt crisis has also generated a lot of questions as to how commodity demand will be impacted by the austerity measures many of the countries in the euro zone will have to take, as well as the enormous debt to again be incurred by those countries.
Strong exposure to copper and coal by Teck has shareholders and investors closely watching the large mining companies with exposure to those commodities which could struggle the most in a low-import environment.
China raising interest rates to combat its rising inflation will probably cause a decline in raw material demand, as the loose monetary policy getting tightened should cause construction to slow down some in the country.
Even relatively small decline in growth in China could cause major ripples, because of the enormous volume of imports the country uses to expand their economy.
Teck Resources will respond to the demand of raw materials, no matter which way it goes, and the EU debt Crisis and China inflation battle could continue to put downward pressure on the share price going forward.
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