* UBS forecasts stainless growth at 3.5 percent this year
* Nickel canceled warrants above 36 percent
* LME/ShFE arb: http://tmsnrt.rs/2oQ5nm20 (Recasts, adds comments, changes dateline from Melbourne)
LONDON, Aug 30 (Reuters) - Nickel prices held near nine-month highs on Wednesday, supported by demand from China's stainless steel mills and falling supplies from top ore exporter the Philippines.
Benchmark nickel was little changed at $11,700 a tonne at 1125 GMT, having peaked on Tuesday at $11,885 to register its highest price since November. Nickel prices are up more than 15 percent this year.
"Stainless steel demand in China and elsewhere has surprised on the upside and talk about nickel consumption in lithium-ion batteries has helped," said Societe Generale analyst Robin Bhar.
"Supplies have been under stress. The Philippines exported less for various reasons, including monsoon rains, mine inspections and shutdowns. Some NPI (nickel pig iron) capacity has been shut in China because of environmental inspections."
STAINLESS: UBS raised its stainless steel demand growth forecast for this year to 3.5 percent from 1.1 percent previously. Its estimate for 2018 is 6.2 percent. "China's appetite for stainless steel products ... is the main reason for our upward revision," UBS analysts said.
CHINA: The bulk of the world's stainless steel is produced in China, which accounts for about two thirds of global nickel demand.
PHILIPPINES: Nickel ore output in the Philippines fell 24 percent in the first half as several mines stopped operations because of government sanctions and bad weather. At least eight nickel mines have had operations suspended since last year for environmental breaches.
INDONESIA: Lower supplies from the Philippines have been partly offset by Indonesia, where a ban on exports has been partially lifted. Indonesia is also exporting nickel pig iron.
STOCKS: Nickel stocks in LME warehouses, up more than 11,000 tonnes since Aug. 11, could weigh on prices. However, traders say that metal earmarked for delivery -- canceled warrants -- at above 36 percent suggests a tighter LME market.
TECHNICALS: Upside resistance for nickel is seen at $11,942, the upper Bollinger band. A break may see a test of $12,000 and eventually the $12,145 peak hit on Nov. 28. Support is at $11,000 and below that at $10,900 near the 21-day moving average.
FUNDS: Traders say nickel's recent price rise was also down to funds reversing short positions betting on lower prices. ALUMINIUM PREMIUM: The discount of $10 a tonne for the cash contract over the three-month contract from a premium of more than $11 on Aug. 22 suggests that large amounts of aluminum could soon come under LME warrant.
CHINA ECONOMY: China can meet its 2017 economic growth targets but may struggle to meet investment goals, the country's state planning head told parliament.
PRICES: Copper fell 0.1 percent to $6,787 a tonne, aluminum slipped 0.1 percent to $2,094, zinc gained 0.4 percent to $3,124, lead was down 0.2 percent at $2,374 and tin added 0.3 percent to $20,405.
(Editing by David Goodman)