METALS-Copper eyes biggest weekly gain in six after Chinese factory survey
* Nickel outperforms in Oct, up 4.5 percent on Indonesian ban
* Pan Pacific sets most 2014 China copper premiums at $123/T
* Coming up: U.S. ISM manufacturing PMI at 1400 GMT
(Adds comment, detail; updates prices)
SINGAPORE, Nov 1 (Reuters) - London copper rose on Friday after a strong Chinese manufacturing sector survey and was set for its biggest weekly gain in six, underpinned by growing signs of economic stabilisation in the world's top metals consumer.
China's manufacturing sector grew at its fastest pace in 18 months in October, an official survey showed, while a private sector report showed a jump in new export orders.
"For metals, it's most likely 'steady as she goes'," said analyst Joel Crane at Morgan Stanley in Melbourne, adding that global manufacturing was improving at a steady rate, not easing as some had expected.
"It's likely put a floor under prices but given we're not getting massive upside (on U.S., Chinese manufacturing growth), I wouldn't expect prices to significantly increase either on the back of this data."
Three-month copper on the London Metal Exchange had gained 0.6 percent to $7,293 a tonne by 0728 GMT, erasing losses of about half a percent in the previous session.
Copper prices struck a one-week peak at $7,300 on Thursday but remain within a $7,000-7,420 band in place since early August.
The most traded January copper contract on the Shanghai Futures Exchange climbed 0.79 percent to close at 52,240 yuan ($8,600) a tonne, having hit its highest in more than a week at 52,290 yuan.
Adding to signs of optimism over growth, business activity in the U.S. Midwest surged past expectations in October as new orders hit their highest level since 2004, countering recent evidence of soft economic growth.
This fuelled the dollar, tempering gains in commodities by making them more expensive for holders of other currencies.
Still, reflecting expectations of robust copper demand next year, Pan Pacific Copper, a unit of JX Holdings Inc, set 2014 copper premiums for Chinese buyers mostly at $123, up 45 percent from this year, a spokesman at the company said on Friday.
In other metals, nickel outperformed in October, gaining more than 4 percent as traders positioned themselves for an export ban by Indonesia scheduled for next year.
"On nickel, it felt like people were putting bets on the Indonesia ban coming into place. But our view is the ban will not be enforced in its current format, but will likely be watered down," said Crane.
Indonesia, the world's top exporter of nickel ore, has said it plans to bring in a ban on exports of unprocessed ore in January 2014.
That potential ban and production cutbacks could lift the price of this year's worst-performing base metal by more than 20 percent from multi-year lows, analysts said.
Tin traded on Indonesia's only approved exchange rose to around 3,000 tonnes last month from 795 tonnes in September, in what signals a partial recovery in shipments by the world's top exporter of the metal.
Three month LME copper
Most active ShFE copper
Three month LME aluminium
Most active ShFE aluminium
Three month LME zinc
Most active ShFE zinc
Three month LME lead
Most active ShFE lead
Three month LME nickel
Three month LME tin
($1 = 6.0945 Chinese yuan)
(Reporting by Melanie Burton; Editing by Alan Raybould)