Updates prices and adds details

By Mai Nguyen

May 17 (Reuters) -Nickel prices in London surged more than 6% on Friday to their highest levels in eight months, boosted by funds inflow, supply disruption concerns in New Caledonia and China's latest rollout of support measures.

New Caledonia, a French-ruled Pacific island, accounted for 6% of global mine nickel output last year, according to data by the International Nickel Study Group.

Three-month nickel on London Metal Exchange (LME) CMNI3 jumped 4.7% to $20,375 by 0808 GMT, having surged as much as 6.8% to $21,150 earlier in the session, a level unseen since Aug. 25, 2023.

The most-traded July nickel contract on the Shanghai Futures Exchange (SHFE) SNIcv1, SNIcv1 ended up 5.2% at 153,460 yuan ($21,252.79), the highest close since October 2023.

A trader cited unrest in New Caledonia as a reason for the price rally, while a broker said stop loss orders were triggered.

French police reinforcements have started arriving in New Caledonia as part of a massive operation to regain control of the capital Noumea, the top French official said.

"Traders contemplate supply disruptions in New Caledonia. Mining operations in the world's third largest nickel producer were suspended," ANZ analysts said in a note.

Other base metals also rose, as funds bought metals to hedge against sticky inflation, and on supply disruptions, demand growth outlook amid the global transition into a green economy, and prospects of U.S. rate cuts.

An analyst suggested metals prices were also supported by China's "historic" steps to allow local governments to buy "some" apartments, relax mortgage rules and pledge to deliver unfinished homes.

LME copper CMCU3 rose 0.5% to $10,472.50 per metric ton, aluminium CMAL3 increased 0.2% to $2,591 a ton, zinc CMZN3 advanced 0.1% to $2,961.50, tin CMSN3 climbed 1.1% to $34,095, while lead CMPB3 fell 0.5% to $2,282.

LME copper hit $10,555 a ton earlier in the session, only $290 below its record-high level, while SHFE copper SCFcv1 jumped to a record peak of 84,500 yuan a ton - both were partly pushed up by a short squeeze in the CME copper futures contract.

SHFE aluminium SAFcv1 rose 1.2% to 20,930 yuan, zinc SZNcv1 increased 0.3% to 23,775 yuan, tin SSNcv1 advanced 1% to 276,990 yuan, while lead SPBcv1 was nearly flat at 18,695 yuan.

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Reporting by Mai Nguyen in Hanoi; Editing by Janane Venkatraman, Eileen Soreng and Sherry Jacob-Phillips

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