So far this year, Teck Resources (NYSE: TCK) has shed more than a third of its market value, as a cooling Chinese economy has dented demand for steel and, by extension, metallurgical coal. In the second quarter, Teck realized just $172 per metric ton of coal, up from $165 in the first quarter though well off the average $289 it was commanding just two years ago.

That’s a sharp fall from grace for the leading producer of met coal in North America and the second largest exporter in the world. But we look for Teck’s fortunes to improve over the next few quarters.

Teck Resources remains a buy, but we’re dropping our target price to 30.

Read More…

We’re also selling Goldcorp (NYSE: GG) and New Gold (AMEX: NGD).