Aug. 19 (Bloomberg) -- Copper prices in New York gained for the first time this week after the London Metal Exchange said global inventory dropped 425 metric tons, or 0.4 percent.

Prices fell 2.8 percent yesterday after the exchange reported a 39 percent surge in stockpiles. Some traders expected another increase today, Barclays Capital said in a report. Copper prices have climbed 61 percent in the past year as rising global demand slashed inventory by 82 percent.

``Stockpiles are still very low in historical terms,'' said Ingrid Sternby, an analyst at Barclays in London.

Copper futures for September delivery rose 2.1 cents, or 1.7 percent, to $1.2915 a pound on the Comex division of the New York Mercantile Exchange. A futures contract is an agreement to buy or sell a commodity at a specific price and date.

Global supply is rising as mining companies, including Phoenix-based Phelps Dodge Corp., Australia's BHP Billiton Ltd. and Codelco in Chile, expand to take advantage of prices that reached an eight-year in March.

``We know mine production is rising, especially in the last few months,'' Sternby said. ``The question is how quickly it finds its way to a market that remains very tight.''

To contact the reporter on this story: Claudia Carpenter in New York at ccarpenter2@bloomberg.net.

Last Updated: August 19, 2004 13:58 EDT