(Updates prices as of Asian market close)

BEIJING, April 29 (Reuters) - Shanghai nickel extended

gains on Wednesday to hit a three-month high, as a Chinese

nickel producer slashing output at its Indonesian unit

intensified worries about the supply loss of the metal used in

stainless steel and electric vehicle batteries.

The most-traded nickel contract on the Shanghai Futures

Exchange closed daytime trade up 1.2% at 150,550 yuan

($22,040.52) per metric ton. It hit its highest since January 26

at 152,230 yuan earlier in the session.

By 0732 GMT, the benchmark three-month nickel on the

London Metal Exchange was up 0.31% at $19,510 per ton. The

contract hit a nearly two-year high at $19,565 on Tuesday.

Nickel prices have already been supported by rising concerns

over supply cuts stemming from lower production quotas in major

producer Indonesia, while costs have increased due to a shortage

of sulphur amid the Middle East conflict.

Prices in Shanghai and London have gained 11% and 13% so far

in April, respectively.

Zhejiang Huayou Cobalt said on Tuesday that its

Indonesian unit would temporarily halt some production lines

from May 1, slashing about half of the plant's output, after

rising sulphur prices lifted costs at one of its key

battery-nickel projects.

"Indonesian high-pressure acid leach (nickel) producers,

representing 14% of global supply, are facing challenges from

rising sulphur prices and tightening supplies, keeping prices

skewed to the upside," said analysts at Morgan Stanley in a

note.

Among other SHFE metals, copper slid 0.53%,

aluminium dipped 0.1%, lead and zinc

were little changed while tin advanced 0.74%.

Among other LME metals, copper added 0.54%,

aluminium advanced 0.2%, tin rose 1.64%, lead

edged up 0.2% while zinc shed 0.18%.

($1 = 6.8306 Chinese yuan)