In the day-ahead market on JEPX (Japan Electric Power Exchange), the 24-hour spot power prices on a weekly average basis for May 5-9 delivery lost further ground from the previous week in both East Japan (50Hz) and West Japan (60Hz). Demand slowed down in the latter half of the Golden Week holidays. Even after the long break, relatively mild climate capped upside room in spot prices. In Hokkaido, meanwhile, the imbalance fees sometimes jumped sky high during the long holidays, topping the Yen 100 mark in some windows for May 5 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 0.23 for May 5 delivery, Yen 0.06 for May 6 delivery, Yen 0.56 for May 7 delivery, Yen 2.97 for May 8 delivery and Yen 0.62 for May 9 delivery.

The fuel market trends in the second week of May were detailed as follows.

DES Northeast Asia spot LNG prices strengthened to the mid $11 level per mmBtu for prompt June 2025 arrival as of May 8, up about 40cts from the end of the previous week (May 2). LNG prices found support from a solidness in European natural gas prices, together with a buying spree by South Korean end-users.

FOB Newcastle thermal coal prices in Australia stood in the mid $98 level per ton for May 2025 loading as of May 8. The level was down about 50cts from the end of the previous week.

In the crude oil market, WTI crude for June 2025 stood in the low $60 level per barrel as of May 9 afternoon while Brent crude for July 2025 was trading in the low $63 level. Both WTI and Brent gained around $2 from the end of the previous week. Crude futures were outpaced by buybacks following steep price falls in the past sessions, besides alleviated concerns over the US tariff policy. The US and Britain clinched a trade agreement on May 8. The US abolished tariffs on steel and aluminum imports from Britain while the UK cut back on trade barriers on US agricultural products.

The actual highest price during the week was at Yen 18.19 in eight areas except Hokkaido for May 6 delivery. Meanwhile, the actual lowest price during the week was at Yen 0.01 in all of nine areas as well as the System Price (SP) for May 5 delivery, Hokkaido for May 6 delivery, Hokkaido, Tohoku, Shikoku, Kyushu and SP for May 7 delivery, and seven areas except Tokyo and Chubu as well as SP for May 8 delivery.

By area, the weekly average of the 24-hour spot prices was at Yen 7.56 in Hokkaido, down Yen 1.12 from the previous week, Yen 8.88 in Tohoku, down Yen 0.53, Yen 10.10 in Tokyo, down Yen 0.58, Yen 9.56 in Chubu, down Yen 0.33, Yen 9.21 in Hokuriku, Kansai and Chugoku, down Yen 0.33, Yen 8.68 in Shikoku, down Yen 0.36, and Yen 8.74 in Kyushu, up Yen 0.14.

In the JEPX auction, volumes of offers were 1,095.09 mil kWh on a weekly average basis, down 4.5% from the previous week. Meanwhile, bids on a weekly average basis decreased by 2.5% to 826.25 mil kWh. The weekly average of trade volumes increased by 0.6% to 675.05 mil kWh.

Power demand in nine areas of Japan during May 5-9 was a combined 9,333.17 mil kWh, up 2.7% from 9,086.91 mil kWh during Apr 28-May 2. The figure was down 6.1% from the corresponding period a year earlier. Demand during May 6-10, 2024 after day of week adjustment was 9,942.28 mil kWh.

Deals reported on TOCOM (Tokyo Commodity Exchange) during May 5-9 were as below.

Deals reported on EEX (European Energy Exchange) during May 5-9 were as below.

In the third week of May, spot prices are expected to strengthen from the second week, but upside room is believed to be limited. Still, the highest temperature during May 13-14 is forecast to rise near 30 degrees in some parts of Kanto and further west, so that a possible pickup in air-conditioning demand could trigger price hikes in evening hours onward with a smaller impact from photovoltaic generation. Meanwhile, the weather is forecast to go downhill in the latter half of the week. But sunshine will be available for the rest of the week, and solar power supply will likely put a lid on spot prices. Citing the price outlook, a source at a power producer and supplier said, "I expect the 24-hour average during the third week at Yen 11-12 in West Japan and Yen 9-10 in West Japan."