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METALS-Shanghai nickel jumps ahead of key Indonesia meeting

(Adds Shanghai closing prices, updates London prices) BEIJING, Sept 10 (Reuters) - Shanghai nickel rose sharply on Tuesday as supply shortage fears persisted after top miner Indonesia expedited a ban on nickel ore exports, while market participants awaited clues on alternative supply plans from a key conference in Jakarta. Traders of the metal, which is used to make stainless steel and electric vehicle batteries, have started arriving in Indonesia for the Asian Nickel conference. Indonesia plans to ban nickel ore exports from January 2020. Nickel prices were also higher in London, at about $18,100 a tonne, within striking distance of a near five-year high of $18,850 touched on Sept. 2, when Indonesia confirmed the ban. "Our nickel bull case of an Indonesian ore export ban before 2020 has become our base," Citi said in a note, revising up its price forecast for next year to $17,500 a tonne from $14,000. "We find that nickel spot prices are high enough to accelerate investment in Indonesia," it added.

FUNDAMENTALS

* NICKEL: The most-traded November nickel contract on the Shanghai Futures Exchange rose as much as 3.4% overnight and ended Tuesday's daytime session up 2.7% at 144,090 yuan ($20,264.40) a tonne. Three-month London nickel climbed for a third session, rising 0.5% to $18,140 a tonne by 0703 GMT after closing up 2.1% on Monday.

* NICKEL: Nickel ore output in the Philippines rose 3% in the first half of 2019 to 11.31 million tonnes, the Mines and Geosciences Bureau said, despite zero production at more than half the country's mines.

* PHILIPPINES: Marcventures Holdings Inc said it plans to develop and put a new mine into commercial operation by 2021, as the Philippine nickel ore producer seeks to take advantage of Indonesia's ban.

* POSITIONING: The net speculative long position on LME nickel reached 43% of open interest, or 75,000 lots, on Sept. 5, the highest in two years, brokerage Marex Spectron estimates.

* COPPER: LME copper gained 0.4% to $5,838.50 a tonne despite weak economic data from top consumer China after state media said Beijing would create favourable conditions for private firms and improve the competitiveness of its manufacturing sector. ShFE copper closed up 0.1% at 47,430 yuan a tonne.

* CHINA: China's producer price index, a key barometer of corporate profitability, dropped 0.8% from year earlier, the National Bureau of Statistics said, the worst year-on-year contraction since August 2016.

* COLUMN: Copper finely poised between negative macro and robust micro: Andy Home

MARKETS NEWS

* Most Asian stocks swung lower, weighed by Chinese markets after mainland factory-gate prices shrank.

PRICES

BASE METALS PRICES 0709 GMTThree month LME copper 5834.5Most active ShFE copper 47430Three month LME aluminium 1803.5Most active ShFE aluminium 14350Three month LME zinc 2318.5Most active ShFE zinc 19020Three month LME lead 2092.5Most active ShFE lead 17415Three month LME nickel 18150Most active ShFE nickel 144080Three month LME tin 17305Most active ShFE tin 140770

BASE METALS ARBITRAGE

LME/SHFE COPPER LMESHFCUc3 611.52LME/SHFE ALUMINIUM LMESHFALc3 -137.75LME/SHFE ZINC LMESHFZNc3 197.42LME/SHFE LEAD LMESHFPBc3 -185.09LME/SHFE NICKEL LMESHFNIc3 -4434.16

($1 = 7.1105 Chinese yuan)

(Reporting by Tom Daly; Editing by Subhranshu Sahu and Sherry Jacob-Phillips)