* Copper speculators add to net long position - CFTC
* ShFe lead rallies 3.3 pct as momentum-based funds buy -
* US markets shut for a public holiday on Monday
(Adds detail, updates prices)
By Melanie Burton
MELBOURNE, Oct 10 London nickel rose on Monday
as Chinese markets returned after a week-long break and traders
bought the metal, which fell last week when Indonesian officials
said they were considering reinstating nickel ore exports.
Indonesia could export up to 15 million tonnes of nickel ore
in 2017 if it amends a ban on unprocessed ore exports, a mining
ministry official said on Friday.
The news poured cold water on prices that had rallied after
a rash of nickel mine suspensions in the Philippines which
threatened supply to top user China's vast stainless steel
"Nickel finds itself in a situation where two key producers
- Indonesia and Philippines - are both in the midst of
revaluating their export policies," analyst Ed Meir of INTL FC
Stone said in a report.
"A number of (Indonesian) companies have set up...
downstream facilities and could be in a position to benefit from
any relaxation in export policies, and this, in turn, should
weigh on prices."
Three-month nickel on the London Metal Exchange
climbed 2.3 percent to $10,430 a tonne by 0700 GMT. Prices fell
3.5 percent last week.
Meanwhile concerns about China's slowing growth and a
widening clampdown on searing hot home prices could also curb
demand for metal, Meir said.
China's central bank governor stepped up rhetoric against
rapid rises in home prices and continued credit growth,
signalling further action on top of recent fresh curbs across a
number of cities to cool their overheated real estate markets.
China's services sector created jobs at the fastest pace in
seven months in September as new business picked up, even though
the overall rate of growth was little changed from August, a
private survey showed.
In other metals, Shanghai Futures Exchange nickel
rose by 0.4 percent while ShFE copper cut early losses
to turn flat. Shfe lead rallied 3.3 percent as
momentum-based buying returned, and ShFE aluminium
jumped 2.8 percent.
Rallying lead prices are unlikely to be sustained, with the
run higher fuelled by a temporary smelter outage and one player
keeping a tight grip on inventories rather than long-term
shortages of physical metal, sources said.
U.S. employment growth eased for a third straight month in
September and the jobless rate rose, but the slowdown was not
expected to prevent the Federal Reserve from raising interest
rates later this year.
In news, hedge funds and money managers raised their net
long positions in COMEX copper contracts in the week to Oct.
Mining operations at Freeport-McMoRan Inc.'s giant
Grasberg mine in Indonesia "have returned to normal" after
resolution of a labour dispute, the company 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
Most active ShFE nickel
Three month LME tin
Most active ShFE tin
(Reporting by Melanie Burton; Editing by Richard Pullin and