PCB Concept Soars as Shenghong Tech Hits Record High Amid Supply Pressures and Price Hikes

The Indonesian government has finalized the revision of Government Regulation (PP) No. 36, mandating that natural resource exporters deposit their Export Earnings (DHE SDA) into state-owned banks (Himbara) starting June 1, 2026. Under the new rules, exporters are required to convert up to 50% of these earnings into Rupiah to bolster domestic liquidity and stabilize the exchange rate. Coordinating Minister for Economic Affairs Airlangga Hartarto confirmed that while the oil and gas sectors will maintain the existing three-month holding period, the broader policy aims to prevent export proceeds from being parked offshore, ensuring that the nation's wealth supports national banking liquidity and foreign exchange reserves.

[SMM Shanghai Spot Copper] Outlook for next week: Shanghai spot copper premiums continued under pressure during the day. Suppliers consecutively lowered their offers throughout the day, with the premium center shifting notably downward, reflecting limited downstream acceptance of high copper prices and premiums, with purchasing driven mainly by rigid demand. In addition, the Shanghai-Guangdong price spread stayed high, with theoretical arbitrage opportunities persisting, which may attract east China cargo to be diverted to south China, diverting available cargo from the Shanghai market and providing some support for local spot discounts. Notably, next Friday is the delivery day for the May contract, and delivery logic is gradually emerging, which may provide bottom support for spot premiums. Overall, Shanghai spot copper premiums are expected to remain under pressure, but downside room is expected to be supported by delivery expectations.