Why Shares in Copper Miner Freeport-McMoRan Surged in February

Shares in copper miner Freeport-McMoRan (NYSE:FCX) rose 26% in February according to data from S&P Global Market Intelligence. The move is the result of two related factors.

First, the price of copper rose through the month from around $3.56 per pound to around $4.10 per pound. Although it's only a one-month movement, it continues a remarkable recovery from a low of around $2.20 in March 2020. The rise in copper prices is a function of the improvement in the global economy, with the metal seen as being one of the most economically sensitive commodities.

Besides, investors have been warming to the investment case for copper as a backdoor way to play growth in electric vehicles (EV) and renewable energy. Electric vehicles tend to use much more copper wiring than internal combustion engine vehicles and renewable energy requires large amounts of transmission and distribution spending.