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LAUNCESTON, Australia: Asia's imports of liquefied natural gas (LNG) are displaying contrasting dynamics in May, with strength in usually price-sensitive buyers like India, but a softer trend in the developed economies such as Japan and South Korea. The top-importing continent is on track to receive about 23.61 million metric tons of the super-chilled fuel this month, according to data compiled by commodity analysts Kpler. This is up slightly from April's 23.23 million tons, although on a daily basis May's arrivals are a touch weaker, while they are stronger than the 20.75 million from May 2023. But while the overall LNG import figures are relatively stable for Asia this month, the breakdown is somewhat at odds with recent movements in the spot price. India's May imports are estimated at 2.46 million tons, up from 2.03 million in April and the strongest month since October 2020. The surge in arrivals comes even as the spot price for delivery to North Asia has been rallying, rising from a near three-year low of $8.30 per million British thermal units (mmBtu) in the week to Feb. 23 to a five-month high of $12.30 last week. What is worth noting is that the cargoes arriving in India in May would have been secured in a window from later February to early April, a time when spot prices were rising but were still below the $10 per mmBtu level. Now that the spot price has risen decisively above that level, it raises the possibility that Indian utilities will scale back purchases as LNG will no longer be competitive in the domestic market. There may be some early signs of this with Kpler tracking 1.13 million tons of arrivals so far in June, more than half of that coming from the United States, meaning those cargoes would have been secured at prices before the recent surge. Another South Asian buyer with robust LNG imports is Pakistan, with Kpler tracking arrivals of 730,000 tons in May, which along with the same volume in January marks the strongest outcome since June 2022. Qatar is the major supplier to both India and Pakistan and it's likely that the South Asian nations were able to secure competitive terms for spot cargoes given the Gulf producer is likely to have seen lower demand from Europe in recent months. LNG vessels have been avoiding the Red Sea and Suez Canal because of attacks on shipping by Yemen's Iran-aligned Houthi group, even though so far no LNG carrier has been targeted. This means Qatar's LNG shipments to Europe have been declining, dropping to 870,000 tons in May, the lowest since August and down from a recent peak of 1.23 million tons in January. But they may be recovering with Kpler tracking exports of 1.02 million tons of LNG to Europe so far for June, and an ongoing recovery in volumes to Europe may cut those available at discounts to India and Pakistan. NORTH ASIA EASES In contrast to the strength in LNG imports in South Asia, those in North Asia were softer in May. China, the world's top buyer, is on track to receive 5.96 million tons in May, down from 6.47 million in April and the lowest monthly total since February, according to Kpler. However, China's imports are likely to exceed the 5.80 million tons from May last year, continuing the trend so far this year of higher LNG arrivals amid a recovering economy and constrained hydropower output. Japan, the world's second-biggest LNG buyer, is expected to import 4.83 million tons in May, down from 5.36 million in April, but higher than the 4.13 million from May last year. Third-ranked South Korea is on track for May imports of 3.45 million tons, down from 3.99 million in April but higher than the 3.19 million from May last year. The overall dynamic for the big three North Asian importers is that arrivals are trending lower, in line with usual seasonal moves, but imports are higher on an annual basis, which does provide fundamental support for the higher spot price. However, the recent spike higher in spot prices may start to undermine imports in South Asia from July onwards, as well as in China, where a rise above $10 per mmBtu makes it difficult for LNG to compete in the domestic market.(The opinions expressed here are those of the author, a columnist for Reuters; editing by Clarence Fernandez)

Brokerage CLSA maintained an outperform rating on Sun TV and a buy rating on Ashok Leyland. InCred upgraded Divi’s Laboratories to Add and JPMorgan has an overweight rating on Exide Industries.We have collated a list of recommendations from top brokerage firms from ETNow and other sources:CLSA on Sun TV: Outperform| Target Rs 720CLSA maintained an outperform rating on Sun TV but raised the target price to Rs 720 from Rs 675 earlier.Data suggests that there is a jump in IPL revenues, but ad revenue declined in Q4. IPL revenue was up 130% on a YoY basis, but the core business ad revenue declines by about 3% on a YoY basis.There are challenges in the core business, however, valuations look cheap and the stock offers 3% dividend yield.CLSA on Ashok Leyland: Buy| Target Rs 258CLSA maintained a buy rating on Ashok Leyland post Q4 results but raised the target price to Rs 258 from Rs 238 earlier.Margin improved sequentially, which points to a strong pricing discipline. The CV industry outlook is strong for FY25. The management is bullish on the Electric CV segment.InCred on Divi’s Laboratories: Add | Target Rs 4707InCred upgraded Divi’s Laboratories to Add from Reduce earlier and has also raised the target price to Rs 4707 from Rs 3333 earlier.The Q4 performance beats expectations, and there is a substantial rise in enquiries in CCS business. There is substantial visibility improvement in the CCS business.The global investment bank hikes FY25F/26F EPS by 12%/13%.JPMorgan on Exide Industries: Overweight| Target Rs 520JPMorgan maintained an overweight rating on Exide Industries post Q4 but raised the target price to Rs 520 from Rs 480 earlier.The global investment bank believes that Exide is well positioned to deliver across all businesses.The margins in the lithium-ion cell business is likely to be in the mid-teens at full capacity utilization.Industrial demand (lead acid batteries) should not be underappreciated.(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)

Indian market is expected to trade higher on Monday tracking positive global cues.The Nifty future closed positive with marginal gains of 0.06% at 23015 levels on Friday. India VIX was up by 1.54% from 21.38 to 21.71 levels.On the weekly options front, the maximum Call OI is placed at 23000 and then towards 23500 strikes while the maximum Put OI is placed at 23000 and then towards 22500 strikes.Call writing is seen at 23500 and then towards 23000 strikes while Put writing is seen at 23000 and then towards 22500 strikes.“Options data suggests a broader trading range in between 22500 to 23500 zones while an immediate range between 22700 to 23200 levels,” Chandan Taparia, Analyst-Derivatives at Motilal Oswal Financial Services Limited, said.“Nifty formed a small-bodied Bullish candle on the daily scale on Friday and has been making higher highs from the last ten trading sessions. It formed a Bullish candle on the weekly frame,” he said.“Now the index has to hold above 22900 zones for an up move towards 23200 then 23350 zones whereas supports are shifting higher at 22850 then 22700 zones,” recommended Taparia.We have collated a list of stocks from the F&O basket along with cash market from various experts for traders who have a short-term trading horizon:Expert: Chandan Taparia, Analyst-Derivatives at Motilal Oswal Financial Services Limited told ETBureauTVS Motor Company: Buy| Target Rs 2340| Stop Loss Rs 2185PFC: Buy| Target Rs 515| Stop Loss Rs 479KEI Industries: Buy| Target Rs 4480| Stop Loss Rs 4180Expert: Kunal Bothra, Market Expert told ETNowHDFC Bank: Buy| Target Rs 1550| Stop Loss Rs 1490TVS Motor: Buy| Target Rs 2320| Stop Loss Rs 2200NMDC: Buy| Target Rs 280| Stop Loss Rs 260(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)