(Recasts to focus on nickel; updates prices by Asian market

close)

May 20 (Reuters) - Nickel extended gains on Wednesday

after Indonesia said it would bring exports of key commodities

under centralised state control, stoking fears of tighter supply

in the world's biggest producer of the stainless steel

ingredient.

The benchmark three-month nickel on the London Metal

Exchange was up 0.66% at $18,930 a metric ton by 0722 GMT, while

the most-traded nickel contract on the Shanghai Futures

Exchange surged 1.88% to close at 145,390 yuan ($21,368.31) a

ton.

Indonesian President Prabowo Subianto said his government

would issue a regulation to strengthen control over commodity

exports, with key resources including palm oil, coal and

ferroalloy to be sold through a central government-run

enterprise.

The move raised concerns over potential disruption to

Indonesia's processed nickel exports, including nickel pig iron

(NPI)and ferronickel, key inputs for stainless steel production.

Supply concerns over nickel emerged earlier this year due to

a slew of policy changes in Indonesia, including a cut in the

nickel ore mining quota and planned changes in tax and royalty.

China's Tsingshan has also asked NPI producers at its Weda

Bay industrial park to reduce output in a bid to redirect

electricity to aluminium production, further supporting nickel

prices.

Among other LME metals, copper rose 0.53% to

$13,482.50 a ton, after hitting an over one-week low at $13,350.

Aluminium rose 0.19%, zinc climbed 0.81%, lead

ticked 0.20% higher and tin jumped 3.26%.

Elsewhere on SHFE, copper closed 0.44% lower.

Aluminium added 0.31%, zinc gained 0.57%, lead

was up 0.36% and tin surged 2.05%.

($1 = 6.8040 Chinese yuan renminbi)