* GRAPHIC-2019 asset returns: (Updates with closing prices)By Eric OnstadLONDON, July 16 (Reuters) - Nickel prices surged to theirhighest in a year on Tuesday, propelled by buying fromspeculators and industrial consumers worried about potentialfuture shortages.A key ingredient in batteries for electric vehicles (EVs),nickel could be subject to increasingly heavy demand with anexpected shift from diesel and petrol cars in the coming years."We've been hearing about consistent strong Western consumerbuying as the main driver of the price, probably related to EVnickel hedging requirements," said Nicholas Snowdon, metalsanalyst at Deutsche Bank in London.Current estimates peg the future supply situation as lesscritical than forecasts from a year ago, but industrial buyersremain nervous about availability, Snowden said."The balance has softened from a sizeable deficit to closeto balance," he said. "But it's not a sudden swing back tosignificant surplus and ample availability, so I think there'sstill a concern over making sure that you have enough rawmaterials."
As nickel prices ramped up, buying from speculators extendedthe rally, one broker said. "It's CTA (commodity tradingadvisers) momentum buying ... that is pushing things (nickel)higher."CTA funds often base trading decisions on chart patterns andtechnical levels, including momentum.
Benchmark three-month nickel on the London Metal Exchange(LME) climbed 3.2% to $14,090 a tonne in closing openoutcry activity after touching $14,200, its highest since lastJuly.Prices of nickel, mainly used in the stainless steelindustry, have also been boosted by worries of restricted oresupplies from major producer Indonesia because of a planned 2022export ban.LME nickel has been the best-performing base metal this yearwith gains of 31% while most other base metals have fallen.
* RIO TINTO COPPER: LME copper closed 0.5% firmer at$6,012 a tonne, having hit a two-week high of $6,037.50 afterRio Tinto flagged a cost blowout of up to $1.9 billionand a delay of up to 30 months at its Oyu Tolgoi undergroundcopper mine in Mongolia, the miner's key growth project.
* ZINC/LEAD BALANCES: During the first five months of theyear the global zinc deficit increased to 123,000 tonnes from103,000 in the same period last year, data showed. The leaddeficit, meanwhile, rose to 42,000 tonnes from 34,000 tonnes.
* ALUMINIUM STOCKS/ALUMINA: LME three-month aluminium ended 0.4% higher at $1,850 a tonne after touching atwo-month peak of $1,856.50 despite data showing LME on-warrantaluminium inventories grew by 9% over the past two days. China's June alumina output rose 5.4% to 6.41 milliontonnes, the aluminium raw material's highest in more than twoyears.
* PRICES: LME zinc finished 1.6% up at a two-weekhigh of $2,482 a tonne, lead firmed by 0.2% to $1,985after touching the highest since April 4 at $1,995, while tin was up 0.6% at $18,000.
* For the top stories in metals and other news, click or <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^Nickel has been outperforming other base metals so far this year ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Additional reporting by Mai Nguyen in SingaporeEditing by Louise Heavens and David Goodman)