The Weight of China Is Too Much for These Companies

It was a long and arduous day for materials producers' stocks yesterday. Many of them fell more than 5% after news that China's GDP growth landed short of the world's hopes. Accounting for around 40% of all metal demand, China shares the demand podium with no one. This was made crystal clear even after announcing 7.7% growth.

Investors in commodity producers must have cringed after checking their portfolios once the closing bell tolled the end of trading Tuesday in the U.S. Some key players on the global level had begun sliding before yesterday's added push. Are materials stocks worth a look now? Well, that all depends on your outlook for several of the materials that are critical components of global growth. For our analysts' take, check out the video below.

Cliffs Natural Resources has grown from a domestic iron ore producer into an international player in both the iron ore and metallurgical coal markets. It has also underwhelmed investors lately, especially after its dramatic 76% dividend cut in February. However, it could now be looked at as a possible value play due to several factors that are likely to remain advantageous for Cliffs' management. For details on these advantages and more, click here now to check out The Motley Fool's premium research report on the company.


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