BEIJING, Jan 30 (Reuters) - Nickel prices hit their strongest in around three months on Wednesday, as the commodity used to make stainless steel tracked ferrous metals higher. Chinese iron ore prices were 'limit up' on the Dalian Commodity Exchange, while Shanghai steel prices also gained sharply amid expectations of lower output from Brazilian miner Vale after a dam burst at one of its sites, killing scores of workers and nearby residents. FUNDAMENTALS * NICKEL: Three-month nickel on the London Metal Exchange climbed as much as 1.2 percent to $12,270 a tonne, its highest since Oct. 25, and stood at $12,245 as of 0227 GMT. The most traded May nickel contract on the Shanghai Futures Exchange rose as much as 2.4 percent to 97,250 yuan ($14,478.19) a tonne, its strongest since Nov. 9. * VALE: The world's largest iron ore miner on Tuesday vowed to take as much as 10 percent of its ore output offline in order to decommission 10 more dams like the one that burst last week. * COPPER: London copper edged up 0.4 percent to $6,074.50 a tonne, buoyed by a slightly weaker dollar, while ShFE copper was up 0.5 percent. * KGHM: The number of miners missing after an earth tremor struck KGHM Polska Miedz's mine near the Polish town of Rudna fell to one from nine, the copper producer said on Twitter on Tuesday. * OYU TOLGOI: Mongolia is working with overseas investigators to look into claims of corruption at its giant Oyu Tolgoi copper mine, the country's anti-graft body said on Tuesday. * RUSAL: U.S. congressional Democrats said they are not satisfied with the Trump administration's decision to ease sanctions on companies linked to Russian oligarch Oleg Deripaska, demanding briefings and planning legislation. * REUTERS POLL: Copper and other base metals prices will recover only modestly this year as an economic slowdown in top metals consumer China subdues demand, a Reuters poll showed.