In the day-ahead market on JEPX (Japan Electric Power Exchange), the 24-hour spot power prices on a weekly average basis for Apr 14-18 delivery lost further ground from the previous week in both East Japan (50Hz) and West Japan (60Hz). Sunshine was available more frequently than the previous week, and ample solar power supply pressured down spot prices led by midday hours. In Kyushu, spot prices hit Yen 0.01 in a series of windows even on weekdays except Apr 14 delivery. The lower price limit was observed across nine areas for Apr 12 delivery.

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 2.64 for Apr 14 delivery, Yen 0.07 for Apr 15 delivery, Yen 1.09 for Apr 16 delivery, Yen 0.85 for Apr 17 delivery and Yen 1.96 for Apr 18 delivery.

The fuel market trends in the third week of April were detailed as follows.

DES Northeast Asia spot LNG prices stood in the mid $11 level per mmBtu for prompt June 2025 arrival as of Apr 17, up about 60cts from the end of the previous week (Apr 11). LNG prices found support from a solidness in European natural gas prices together with production outages at several projects in Australia and Southeast Asia. The Ministry of Economy, Trade and Industry (METI) announced on Apr 16 that Japan's LNG inventories for power generation stood at 2.13 mil mt as of Apr 13, intact from a week before. The figure was down both from 2.18 mil mt as of end-April last year and the average of past five years at 2.14 mil mt.

FOB Newcastle thermal coal prices in Australia stood in the low $95 level per ton for April 2025 loading as of Apr 17. The level was up marginally by about 20cts from the end of the previous week. The rise came in line with a strength in gas prices.

In the crude oil market, WTI crude for May 2025 stood in the mid $64 level per barrel as of Apr 11 morning while Brent crude for June 2025 was trading in the high $67 level. Both WTI and Brent were up about $3 from the end of the previous week. Crude futures were bolstered by expectations for falling crude oil supply from Iran, at a time when excessive concerns receded over the outlook of the global economy amid the trade war between US and China. The US Treasury Department on Apr 16 said it would newly impose sanctions on an independent oil refiner in Shandong province in China that continued to import Iranian crude oil. The US government also imposed sanctions on several tankers that were accused of being involved in transportation of Iranian crude oil.

The actual highest price during the week was at Yen 17.58 in West Japan for Apr 15 delivery. Meanwhile, the actual lowest price during the week was at Yen 0.01 in Kyushu for Apr 15 delivery, Hokkaido, Tohoku, Shikoku, Kyushu and the System Price (SP) for Apr 16 delivery, all of nine areas and SP for Apr 17 delivery, and Kyushu for Apr 18 delivery.

By area, the weekly average of the 24-hour spot prices was at Yen 8.95 in Hokkaido, down Yen 2.18 from the previous week, Yen 9.07 in Tohoku, down Yen 2.18, Yen 10.59 in Tokyo, down Yen 1.96, Yen 9.72 in Chubu, down Yen 0.52, Yen 9.51 in Hokuriku, down Yen 0.73, Yen 9.47 in Kansai and Chugoku, down Yen 0.56, Yen 9.26 in Shikoku, down Yen 0.23, and Yen 8.53 in Kyushu, down Yen 0.17.

In the JEPX auction, volumes of offers were 1,108.15 mil kWh on a weekly average basis, down 1.5% from the previous week. Meanwhile, bids on a weekly average basis waned by 1.5% to 861.78 mil kWh. The weekly average of trade volumes increased by 0.9% to 707.58 mil kWh.

Power demand in nine areas of Japan during Apr 14-18 was a combined 10,605.21 mil kWh, down 0.1% from 10,619.64 mil kWh during Apr 7-11. The figure was up 3.1% from the corresponding period a year earlier. Demand during Apr 15-19, 2024 after day of week adjustment was 10,287.25 mil kWh.

Deals reported on TOCOM (Tokyo Commodity Exchange) during Apr 14-18 were as below.

Deals reported on EEX (European Energy Exchange) during Apr 14-18 were as below.

In the fourth week of April, spot prices are still expected to have limited upside potential. In Kanto and further west, the highest temperature is forecast to stay near 25 degrees, a level that is too mild to use neither air-conditioners nor heaters. The weather is forecast to go downhill in the middle of the week. But sunshine will be available mostly during the week, and solar power supply can be expected to some extent. With the bearish temperature trends and weather conditions, spot prices are likely to mark Yen 0.01 frequently mainly in West Japan. A source at a power producer and supplier said, "I believe the 24-hour average still hover at Yen 10-11 in East Japan and below Yen 10 in West Japan." But an increasing number of thermal units halted operation for regular maintenance, a factor that trimmed power reserve rates. Thus, there is a chance of unexpected price hikes in case of any troubles at generation facilities.