IEA: Copper Supply Could Fall 25% Below Demand by 2035

The news signals a long-term tightening in copper supply, which could support prices. Technical indicators also paint a positive short-term picture: RSI at 62 is in the buying zone, MACD is above the signal line, and the price is trading above both the 20-day and 50-day moving averages. The 0.67% increase over the last 24 hours confirms the momentum. However, the RSI approaching overbought territory and the possibility that the market has partially priced in the news suggest that the upside may be limited. While a continued upward move is expected in the short term, caution is advised.

The news forecasts a long-term contraction in copper supply, which could serve as a positive catalyst for copper producers like FCX. Technically, the RSI is neutral at 50.5, and while the MACD is below the signal line, the price is trading below the SMA20 but above the SMA50. In the short term, this news could positively impact investor sentiment, potentially driving the price higher. However, since the price needs to break above the SMA20 and the MACD has not yet issued a buy signal, the upside may remain limited.

The International Energy Agency's (IEA) report that copper supply could fall 25% below demand by 2035 strengthens the long-term demand outlook. However, the stock has declined 4.1% in the last 24 hours, with the RSI at 40, indicating weak momentum. The MACD is below the signal line, and the price is trading below both the 20-day and 50-day moving averages. While short-term technical indicators are weak, such structural supply deficit news typically benefits mining stocks. Therefore, limited upside potential can be expected in the near term.

The news creates a long-term expectation that copper demand will exceed supply, which is positive for mining companies such as RIO. Technical indicators present a neutral picture; the RSI at 47 is neither overbought nor oversold, and the MACD remains below the signal line but close to zero. The price is trading just below the 20-day moving average (91.81) and above the 50-day moving average (90.97). In the short term, there is potential for a slight uptick driven by the news, but the technical outlook lacks a clear direction, suggesting any upside may be limited.