METALS-London copper hits 1-mth high as Indonesia ban stokes supply worries
* Nickel stockpiles seen extending further next year -INSG
* World copper market seen in 632,000-T surplus in 2014 -ICSG
* Coming up: euro zone industrial production at 1000 GMT
(Adds comment on Freeport, detail)
SINGAPORE, Dec 12 (Reuters) - London copper struck its highest in a month on Thursday, extending its winning streak into a fifth session as worries about an export halt from the world's fifth biggest copper mine in Indonesia fuelled supply concerns.
U.S. mining giant Freeport McMoRan Copper & Gold warned that Indonesia's plan to ban mineral exports from next month would cut the firm's revenues in the country by 65 percent, costing Southeast Asia's biggest economy $1.6 billion in lost revenue next year.
It estimated that if the ban was implemented, output at its Grasberg mine would fall by 60 percent next year, consisting of a cut of 900 million pounds of copper (410,000 tonnes) and 1.7 million ounces of gold.
Indonesia's president is expected to soon make a final decision on the move.
"If this would really happen, then the surplus we were initially looking at of between 300,000 to 400,000 tonnes would be annihilated. We would be in a deficit and we could see copper going to $8,000 a tonne," said analyst Dominic Schnider of UBS Wealth Management in Singapore.
"But will it last? I don't think so, it would deteriorate Indonesia's trade balance so rapidly that they would be forced by the market to change their policy," he added.
Three-month copper on the London Metal Exchange hit $7,247 a tonne, its highest since Nov. 4. It was trading at $7,245 a tonne by 0807 GMT, up 0.35 percent and adding to gains of 0.9 percent in the previous session.
The most-traded February copper contract on the Shanghai Futures Exchange climbed 0.80 percent to close at 51,560 yuan ($8,500) a tonne on Thursday, having also marked its highest in more than a month.
The news comes against a backdrop of tight supply, as consumers in China and elsewhere jockey for 2014 shipments.
Copper users in top consumer China are braced to pay higher premiums to procure metal and global exchange stocks have slumped to five-year lows, flagging tight supply that some traders expect to stretch out into next year.
A surplus in the global market for refined copper will widen by over 60 percent in 2014 as new mine supply outstrips reviving demand, an industry group said on Thursday.
Expectations of plentiful supply given an expected surplus this year, had encouraged traders to short copper. These traders are now covering their positions, adding to upside momentum, market participants said.
Growth in China's factory output and investment eased slightly in November while retail sales grew at their strongest rate this year, suggesting the economy is on track to achieve the government's growth target.
Also benefiting from Indonesia's ban, nickel prices were outperforming on Thursday, up 0.9 percent at $14,161 a tonne. Indonesia is the top exporter of nickel laterite ore.
The ban may help dent record nickel stocks, which are expected to swell next year as new projects start up and existing operations ramp up production, another industry group said.
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 = 6.0717 Chinese yuan)
($1 = 6.0717 Chinese yuan)
(Editing by Michael Urquhart and Joseph Radford)