In the day-ahead market on JEPX (Japan Electric Power Exchange), the 24-hour spot power prices on a weekly average basis for Mar 25-29 delivery rose further from the previous week in East Japan, but eased back in West Japan. The weather in both East Japan and West Japan was cloudy for most of the week, a factor that curbed output from photovoltaic generation. But the temperatures were relatively low widely in East Japan, but higher than normal in most parts of West Japan. In East Japan, meanwhile, JERA shut down more than 15 units at its LNG-fired power stations during Mar 27-29, creating a gap in power supply between East Japan and West Japan. Mirroring such a status of supply-demand fundamentals, spot prices in East Japan and West Japan moved in an opposite direction.

In Tokyo and Kansai, the key areas in East Japan and West Japan, the 24-hour average posted a difference in favor of the East by Yen 0.41 for Mar 25 delivery, Yen 3.59 for Mar 26 delivery, Yen 2.76 for Mar 27 delivery, Yen 2.34 for Mar 28 delivery and Yen 5.50 for Mar 29 delivery.

In the fuel markets, LNG and crude oil prices inched up from the previous week. Coal prices also turned higher.

DES Northeast Asia spot LNG prices hovered in the mid $9 level per mmBtu for prompt May 2024 arrival as of the latter half of the week (Mar 28), up slightly by 20cts from the end of the previous week (Mar 22). European natural gas prices firmed up on the back of stockpiling demand, and the LNG market in Northeast Asia also followed suit. In Northeast Asia, however, appetite from China and India lacked vigor, capping upside room in LNG prices. The Ministry of Economy, Trade and Industry (METI) announced on Mar 28 that Japan's LNG inventories for power generation stood at 1.52 mil mt as of Mar 24, down 80,000mt from the previous week. The level was way below 2.33 mil mt as of end-March last year and the average of past five years at 2.14 mil mt. As mentioned above, lower-than-normal temperatures in East Japan gave a boost to gas demand.

FOB Newcastle thermal coal prices in Australia hovered at $132 per ton for April 2024 loading as of the latter half of the week. The level was about $7.50 higher than the end of the previous week, reflecting a firmness in gas and crude oil prices.

In the crude oil market, WTI crude for May 2024 stood at slightly above $83 as of morning on Mar 29 while Brent crude for May 2024 was trading at $87. Both WTI and Brent were up nearly $1.50 from the end of the previous week. Crude prices wobbled day after day. The market found support from uncertainty over Russian oil supply, on top of expectations for interest rate cuts by the US Federal Reserve Board (FRB). But crude prices were overshadowed by a buildup in US crude oil inventories, coupled with a stronger dollar against the major currencies.

The actual highest price during the week was at Yen 23.96 in all of Tohoku and Tokyo for Mar 26 delivery. Meanwhile, the actual lowest price during the week was at Yen 0.01 in West Japan and the System Price (SP) for Mar 27 delivery, and five areas from Hokuriku to Kyushu for Mar 29 delivery

By area, the weekly average of the 24-hour spot prices was at Yen 13.81 in Hokkaido, up Yen 0.07 from the previous week, Yen 13.24 in Tohoku, up Yen 1.11, Yen 13.28 in Tokyo, up Yen 1.03 Yen 1.09, Yen 11.42 in Chubu, down Yen 0.51, Yen 10.73 in Hokuriku, down Yen 0.86, Yen 10.37 in Kansai and Chugoku, down Yen 1.16, Yen 10.31 in Shikoku, down Yen 1.22, and Yen 10.00 in Kyushu, up Yen 0.06.

In the JEPX auction, volumes of offers were 937.16 mil kWh on a weekly average basis, down 3.7% from the previous week. Meanwhile, bids on a weekly average basis waned by 4.4% to 906.54 mil kWh. The weekly average of trade volumes shrank by 5.2% to 647.21 mil kWh.

Power demand in nine areas of Japan during Mar 25-29 was a combined 11,837.90 mil kWh, down 6.5% from 12,658.24 mil kWh Mar 18-22. The figure was up 8.8% from the corresponding period a year earlier. Demand during Mar 27-31, 2023 after day of week adjustment was 10,877.77 mil kWh.

In the JEPX forward market, no deals were confirmed during Mar 25-29.

Deals reported on TOCOM (Tokyo Commodity Exchange) during Mar 25-29 were as below.

Deals reported on EEX (European Energy Exchange) during Mar 25-29 were as below.

In the first week of April, or the kickoff week in the new fiscal year, the trend of spot prices will attract keen attention from market players. Several term contracts led by bilateral OTC deals will expire before April, and a possible change in purchasing behaviors among market players will likely impact the price trends. But mild spring season sets in with cherry blossoms blooming in a wider range of areas, shrining power demand is believed to put a lid on spot prices.