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Teck CEO warns of slowing demand

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Teck Resources' (TCK.B-T) hiked its dividend by 33 percent just before reporting that profits nearly doubled in the third quarter. But the miner also scaled back its outlook for coal sales and copper production for the rest of the year.

CEO Don Lindsay tells BNN that with its revised guidance Teck is acknowledging that coal demand is weakening. "Where customers -- steel companies -- have been cautious…instead of purchasing coal at the same rate, they have been drawing down inventories."

Lindsay says that while sales have slowed "slightly," its production is going "very well."

"When it turns, we'll be ready," he says.

CHINA, EMERGING MARKETS TO DRIVE DEMAND

European leaders hammered out an agreement earlier this week to recapitalize banks, which helped bolster investor confidence and boosted equity markets around the world on Thursday. But Lindsay says Teck's outlook is becoming increasingly less dependent on the developed economies in Western Europe.

"When we're looking at the end consumer of our products and what's driving the fundamentals of supply and demand, we're really looking from the West… to China and the emerging markets," he says.

"With the current growth of the Chinese steel industry, if all of Europe were shut down, they would replace that production capacity in just a little over two years."

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