In the day-ahead market on JEPX (Japan Electric Power Exchange), the 24-hour spot power prices on a weekly average basis for May 12-16 delivery bounced back from the previous week in East Japan (50Hz), but lost further ground in West Japan (60Hz). Early-summer hot climate gripped both East Japan and West Japan from May 13 onward. A gradual pickup in air-conditioning utilization gave a boost to power demand, providing a bullish impact on spot prices. But spot prices in West Japan weakened from the previous week on expanding price decoupling at the Tokyo-Chubu border, at a time when sunshine was available through May 14 and created ample solar power supply. The Tokyo-Chubu border observed price decoupling in a combined 195 windows during May 12-16, up sharply from 41 windows during May 5-9.

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 3.44 for May 12 delivery, Yen 2.64 for May 13 delivery, Yen 5.90 for May 14 delivery, Yen 4.40 for May 15 delivery and Yen 0.36 for May 16 delivery.

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

DES Northeast Asia spot LNG prices eased moderately to the high $11 level per mmBtu for prompt June 2025 arrival as of May 15, down about 5cts from the end of the previous week (May 9). LNG prices hovered in a tight range throughout the week, reflecting a mixed trend in Europpean natural gas prices. Meanwhile, LNG prices found support from eased trade friction between the US and China, but an unabated looseness in supply-demand fundamentals in Northeast Asia injected bearishness into the market. Both bullish and bearish factors played a tug of war, leaving LNG prices directionless.

FOB Newcastle thermal coal prices in Australia stood at $99 per ton for June 2025 loading as of May 15. The level was almost stable from the end of the previous week.

In the crude oil market, WTI crude for June 2025 stood in the high $61 level per barrel as of May 16 afternoon while Brent crude for July 2025 was trading in the high $64 level. Both WTI and Brent rose by about 70cts from the end of the previous week. Crude futures extended gains in the first half of the week, on the back of alleviated trade friction between the US and China. But the early gains were pared in the latter half of the week, pressured by a buildup in US crude oil inventories. Crude futures were also overshadowed by prospects for relaxed sanctions against Iran.

The actual highest price during the week was at Yen 20.14 in three areas in East Japan for May 14 delivery. Meanwhile, the actual lowest price during the week was at Yen 0.01 in Kyushu for May 12 delivery, all of nine areas and the System Price (SP) for May 13 delivery, six areas in West Japan and SP for May 14 delivery, and Hokkaido and Tohoku for May 15 delivery.

By area, the weekly average of the 24-hour spot prices was at Yen 8.59 in Hokkaido, up Yen 1.03 from the previous week, Yen 9.57 in Tohoku, up Yen 0.69, Yen 11.34 in Tokyo, up Yen 1.24, Yen 8.23 in Chubu, down Yen 1.33, Yen 7.47 in Hokuriku, Kansai and Chugoku, down Yen 1.74, Yen 7.41 in Shikoku, down Yen 1.27, and Yen 6.70 in Kyushu, down Yen 2.04.

In the JEPX auction, volumes of offers were 1,128.16 mil kWh on a weekly average basis, up 3.5% from the previous week. Meanwhile, bids on a weekly average basis increased by 3.5% to 855.38 mil kWh. The weekly average of trade volumes grew by 4.3% to 704.23 mil kWh.

Power demand in nine areas of Japan during May 12-16 was a combined 10,230.54 mil kWh, up 9.6% from 9,333.17 mil kWh during May 5-9. The figure was down 1.0% from the corresponding period a year earlier. Demand during May 13-17, 2024 after day of week adjustment was 10,334.61 mil kWh.

Deals reported on TOCOM (Tokyo Commodity Exchange) during May 12-16 were as below.

Deals reported on EEX (European Energy Exchange) during May 12-16 were as below.

In the fourth week of May, spot prices are likely to strengthen from the third week. After the weekend, mild temperatures are expected across Japan on May 19. But the temperatures are forecast to rise near 30 degrees in broad areas from southern Tohoku and Kyushu from May 20 onward, and air-conditioning is believed to increase. With many thermal units still off line for regular maintenance, prices will also get a boost from a move to satisfy demand with spot purchases. In addition, ongoing maintenance works at interconnection lines led by the Frequency Convertor (FC) are likely to give a great impact on the price trends. Citing the price outlook for next week, a source at a power producer and supplier said, "I believe the 24-hour average during the fourth week at Yen 12-13 in East Japan and Yen 9-10 in West Japan."