In the day-ahead market on JEPX (Japan Electric Power Exchange), the 24-hour spot power prices on a weekly average basis for Nov 25-29 delivery eased back from the previous week in both East Japan (50Hz) and West Japan (60Hz). The temperatures were mostly below the previous year and usual years across Japan. Sunshine was also available mostly during the week, so that slack supply-demand fundamentals weighed on spot prices. In addition, a gradually increasing number of thermal units resumed operation after completing regular maintenance, and a buildup in excess power supply also served as a bearish factor.

Tohoku EPC shut down the 825MW No2 BWR (Boiling Water Reactor) at its Onagawa nuclear power station in Miyagi prefecture for a planned suspension at 8:09 hours on Nov 24. The move is an intermediate shutdown that was originally programmed as part of the restarting procedures. The intermediate shutdown is scheduled to last about 10 days, with a launch of commercial operation planned around December.

Kyushu EPC reactivated the 890MW No2 PWR (Pressurized Water Reactor) at its Sendai nuclear power station in Kagoshima prefecture on Nov 28 following regular maintenance started on Sep 14. The reactor is scheduled to resume power generation on Nov 30 and return to normal operation around Dec 25.

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 3.27 for Nov 25 delivery, Yen 3.53 for Nov 26 delivery, Yen 2.40 for Nov 27 delivery, Yen 1.40 for Nov 28 delivery, and Yen 1.15 for Nov 29 delivery.

In the fuel markets, LNG, coal and crude oil prices altogether weakened from the end of the previous week.

DES Northeast Asia spot LNG prices hovered at $15 per mmBtu for prompt January 2025 arrival as of Nov 28, down about 35cts from the end of the previous week (Nov 22). A softness in European natural gas prices dragged down the LNG market in Northeast Asia. In addition, ample availability in the Northeast Asia market also weighed on LNG prices. The Ministry of Economy, Trade and Industry (METI) announced on Nov 27 that Japan's LNG inventories for power generation stood at 2.06 mil mt as of Nov 24, down 220,000mt from a week before. The level was down both from 2.16 mil mt as of end-November last year and the average of past five years at 2.13 mil mt.

FOB Newcastle thermal coal prices in Australia stood at $138 per ton for December 2024 loading as of Nov 28. The level was down slightly less than $5 from the end of the previous week, in line with a loss in gas prices.

In the crude oil market, WTI crude for January 2025 stood at slightly above $69 as of the morning on Nov 29 while Brent crude for January 2025 was trading in the low $73 level. Both WTI and Brent were down more than $2 from with the end of the previous week. Crude futures were outpaced by sell-offs as Israel and the pro-Iranian group Hezbollah in Lebanon agreed upon a ceasefire deal, alleviating excessive concerns over the Middle East situation.

The actual highest price during the week was at Yen 21.02 in all of nine areas and the System Price (SP) for Nov 26 delivery. Meanwhile, the actual lowest price during the week was at Yen 0.01 in Shikoku and Kyushu for Nov 25 delivery and Shikoku for Nov 29 delivery.

By area, the weekly average of the 24-hour spot prices was at Yen 14.27 in Hokkaido, down Yen 1.20 from the previous week, Yen 14.44 in Tohoku, down Yen 1.31, Yen 15.03 in Tokyo, down Yen 1.16, Yen 14.16 in Chubu, down Yen 2.02, Yen 12.69 in Hokuriku, down Yen 1.65, Yen 12.68 in Kansai down Yen 1.66, Yen 12.68 in Chugoku, down Yen 1.39, Yen 11.77 in Shikoku, up Yen 0.84, and Yen 12.13 in Kyushu, down Yen 0.69.

In the JEPX auction, volumes of offers were 1,013.60 mil kWh on a weekly average basis, down 0.1% from the previous week. Meanwhile, bids on a weekly average basis shrank by 4.8% to 935.75 mil kWh. The weekly average of trade volumes waned by 2.5% to 709.09 mil kWh.

Power demand in nine areas of Japan during Nov 25-29 was a combined 11,778.74 mil kWh, up 3.1% from 11,425.91 mil kWh during Nov 18-22. The figure was down 3.2% from the corresponding period a year earlier. Demand during Nov 27-Dec 1, 2023 after day of week adjustment was 12,172.77 mil kWh.

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

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

In the first week of December, spot prices are likely to soften moderately from the final week of November. The highest temperature is forecast to exceed 15 degrees widely from Kyushu to Kanto. The level will be too mild to use neither air-conditioners nor heaters. The weather is forecast to remain sunny led by the Pacific Ocean side, so that ample solar power supply will be expected mostly during the week. On top of such weather and temperature forecasts, more thermal units that are currently off line mainly for regular maintenance are scheduled to return to operation. A buildup in power supply is believed to put a lid on spot prices. A source at a power producer and supplier said, "In usual years, spot prices in December tend to keep relatively stable movements before the Christmas season. I suspect the market's volatility will be limited for the time being."