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METALS-Nickel surges as Indonesia plans ore export ban from 2020

Mai Nguyen

(Adds quotes, details and updates prices) SINGAPORE, Sept 2 (Reuters) - Nickel prices in Shanghai hit a record high on Monday, while they jumped to a five-year high in London, after top producer Indonesia said it would restrict ore exports from 2020.

The benchmark three-month contract was up 3.2% at

$18,470 a tonne, as of 0349 GMT, its highest since September

2014, while Shanghai nickel surged to its maximum daily

limit of 6% to a record 136,960 yuan ($19,309.72) a tonne. Indonesia, the world's biggest supplier of nickel ore, on Friday announced that it would expedite a ban on mineral ore exports by two years from an original schedule of 2022.

"The country is a key supplier to the Chinese nickel pig iron industry. However, it's keen to retain more value in the country, with one eye on the burgeoning battery sector. This latest move is likely to significantly tighten up the market," said ANZ in a note. London nickel has leaped 70% so far this year, while most other base metals were declining.

FUNDAMENTALS

* PHILIPPINES NICKEL: Philippine nickel miners are expected to boost ore production next year when Indonesia bans exports of the raw material used in stainless steel and batteries, the head of the local nickel miners' lobby group told Reuters.

* MINERS: Stock prices of Australian nickel miners surged on news of the ore ban from Indonesia, while share prices of miners from Philippines, the world's second-biggest ore producer, also rallied.

* NICKEL SPREAD: The premium between LME nickel cash and three-month contract <MNI0-3> rose to a decade high of $104 a tonne, indicating tight nearby supplies.

* TIN: Shanghai tin rose as much as 4.4% to 134,960

yuan a tonne, while London tin eased 0.3% after climbing

3.5% in the previous session. Indonesia is also a major producer of tin.

* PRICES: London copper was almost unchanged,

aluminum rose 0.1%, zinc increased 1%, whilelead advanced 0.6%. Shanghai copper edged down0.2% and zinc dropped 0.9%.* TRADE WAR: U.S. president Donald Trump said the officials

from the United States and China would still meet for talks later this month even after the latest round of tariffs kicked in on Sunday.

* CHINA: China's factory activity unexpectedly expanded in August as production edged up, a private business survey showed on Monday, but orders remained weak and business confidence faltered as the Sino-U.S. trade war continued to escalate.

* CHINA STIMULUS: China plans to provide more support for its economy, including investing in infrastructure projects and regional development, while maintaining a prudent monetary policy with "reasonably" ample liquidity.

* ALUMINIUM: A global aluminum producer has offered Japanese buyers a premium of $110 per tonne for October-December primary metal shipments, up 2% from the current quarter, sources told Reuters.

* ALUMINIUM: The large amount of aluminum tied up in financing deals, made more lucrative by cheaper credit, has eroded the benefits of lower benchmark prices for European consumers needing to buy on the spot market.

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PRICES Three month LME copper Most active ShFE copper Three month LME aluminum Most active ShFE aluminum Three month LME zinc Most active ShFE zinc Three month LME lead Most active ShFE lead Three month LME nickel Most active ShFE nickel Three month LME tin Most active ShFE tin

ARBS

($1 = 7.0928 Chinese yuan)

(Reporting by Mai Nguyen; Editing by Rashmi Aich and Sherry Jacob-Phillips)