In the day-ahead market on JEPX (Japan Electric Power Exchange), the 24-hour spot power prices on a weekly average basis for May 19-23 delivery climbed up from the previous week in both East Japan (50Hz) and West Japan (60Hz). The temperatures stayed relatively high mostly during the week, and a pickup in heating demand lifted spot prices further. On May 21, the highest temperature in Kamioka (Hida city in Gifu prefecture) reached 35 degrees, marking the extremely-hot day indicator for the first time this year. On the same day, the temperatures rose to 30 degrees or even higher at 216 spots. In Tokyo, the peak demand exceeded 37GW on May 21, the highest level since Apr 3 that cold snaps gripped Japan.

The 595MW No1 unit in the No2 train at JERA's Joetsu LNG-fired power station was hit by a fire around 8:23 hours on May 20. The fire occurred near the reheat exit valve of the heat recovery stream boiler, and was extinguished around 9:16 hours. The unit with an obligation to send power supply to Chubu was off line when the fire struck, so that the incident gave no impact on power supply-demand fundamentals.

Kansai EPC reactivated the 826MW No3 PWR (Pressurized Water Reactor) at its Mihama nuclear power station in Fukui prefecture on May 21 following regular maintenance started on Mar 2. The reactor reached the critical point on May 22 and entered into controlled operation starting May 23. The reactor is scheduled to go through a comprehensive load performance test on Jun 18, and return to full-fledged operation.

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 4.75 for May 19 delivery, Yen 3.74 for May 20 delivery, Yen 1.88 for May 21 delivery, Yen 2.82 for May 22 delivery and Yen 5.81 for May 23 delivery.

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

DES Northeast Asia spot LNG prices strengthened to the mid $12 level per mmBtu for prompt June 2025 arrival as of May 22, up about 60cts from the end of the previous week (May 16). A telephone talk between the US and Russia over a ceasefire of the Ukraine war failed to make progress. Renewed geopolitical risks pushed up European natural gas prices, and the LNG market in Northeast Asia followed suit. The Ministry of Economy, Trade and Industry (METI) announced on May 21 that Japan's LNG inventories for power generation stood at 1.98 mil mt as of May 18, up 40,000mt from a week before. The figure was down both from 2.07 mil mt as of end-May last year and the average of past five years at 2.18 mil mt.

FOB Newcastle thermal coal prices in Australia stood at $105 per ton for June 2025 loading as of May 22. The level was up more than $3 from the end of the previous week. The above-mentioned geopolitical risks stemming from the Ukraine situation served as a bullish factor.

In the crude oil market, WTI crude for July 2025 stood in the high $60 level per barrel as of May 23 morning while Brent crude for July 2025 was trading at slightly above $64. Both WTI and Brent lost more than $1 from the end of the previous week. Crude futures came under pressure from looming concerns over the outlook of the Chinese economy, on top of a buildup in US crude oil inventories. Besides that, the crude oil market was unaided by a media report that the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC producers, or OPEC plus, were discussing a production hike in July.

The actual highest price during the week was at Yen 24.13 in three areas in East Japan for May 20 delivery. Meanwhile, the actual lowest price during the week was at Yen 0.01 in Hokkaido, Tohoku and Kyushu for May 19 delivery, Kyushu for May 20 and May 22 delivery, and eight areas except Tokyo and the System Price (SP) for May 23 delivery.

By area, the weekly average of the 24-hour spot prices was at Yen 9.57 in Hokkaido, up Yen 0.98 from the previous week, Yen 10.92 in Tohoku, up Yen 1.35, Yen 12.66 in Tokyo, up Yen 1.32, Yen 9.38 in Chubu, up Yen 1.15, Yen 8.86 in Hokuriku and Kansai, up Yen 1.39, Yen 8.85 in Chugoku, up Yen 1.38, Yen 8.65 in Shikoku, up Yen 1.24, and Yen 8.05 in Kyushu, up Yen 1.35.

In the JEPX auction, volumes of offers were 1,120.54 mil kWh on a weekly average basis, down 0.7% from the previous week. Meanwhile, bids on a weekly average basis grew by 1.8% to 871.04 mil kWh. The weekly average of trade volumes waned by 0.3% to 702.04 mil kWh.

Power demand in nine areas of Japan during May 19-23 was a combined 10,706.27 mil kWh, up 4.7% from 10,230.54 mil kWh during May 12-16. The figure was up 1.8% from the corresponding period a year earlier. Demand during May 20-24, 2024 after day of week adjustment was 10,518.93 mil kWh.

Deals reported on TOCOM (Tokyo Commodity Exchange) during May 19-23 were as below.

Deals reported on EEX (European Energy Exchange) during May 19-23 were as below.

In the final week of May, spot prices are likely to stay in a similar range as the fourth week. Heat waves are expected to ease compared with the fourth week that witnessed extremely hot temperatures (35 degrees) from place to place. But the temperatures will remain above 25 degrees broadly in Kanto and further west, so that spot prices are believed to resist pressure and have limited downside room. Citing the price outlook for next week, a source at a power producer and supplier said, "I believe the 24-hour average during the final week will be at Yen 11-12 in East Japan and Yen 8-9 in West Japan." The levels are almost stable from the fourth week.