LME three-month nickel hit a five-year high of $18,850 per tonne on Monday.

The illegal trade could rise further in coming months as India, the world's second biggest gold consumer, raised an import tax on gold.

While Indonesia has an estimated nickel ore reserves of 2.8 billion metric tons, proven stockpiles are only about 600 million to 700 million tonnes.

The most-traded January 2020 iron ore on the Dalian Commodity Exchange ended 4% higher at 607.50 yuan ($85.65) a tonne.

The latest quarterly pricing negotiations began this week between Japanese buyers and global producers, including Rio Tinto and South32.

Global benchmark spot gold prices were on course for a fourth straight monthly rise.

The South Asian economy will allow 100% foreign direct investment in mining and sale of coal, said India's trade minister.

Talk of the ban has sent prices of nickel soaring on the Shanghai and London markets.