In the day-ahead market on JEPX (Japan Electric Power Exchange), the 24-hour spot power prices on a weekly average basis for Jun 2-6 delivery lost further ground from the previous week in East Japan (50Hz), but bounced back in West Japan (60Hz). Price decoupling at the Tokyo-Chubu border decreased from the previous week, boosting an inflow of low-priced power supply from West Japan to East Japan. Instead, West Japan got a greater impact from high-priced power supply from East Japan. As a result, spot prices posted a conflicting trend between East Japan and West Japan. In addition, West Japan found support from bad weather conditions and limited output from photovoltaic generation in the first half of the week.

Kyushu EPC postponed reactivating the 1,180MW No3 PWR (Pressurized Water Reactor) at its Genkai nuclear power station in Saga prefecture following regular maintenance started on Mar 28. The decision came as Kyushu confirmed a glitch at one of the valves that should be used for an inspection at the main steam system. The reactor was originally scheduled to be reactivated on Jun 4 and enter controlled operation starting Jun 6.

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 1.49 for Jun 2 delivery, Yen 0.99 for Jun 3 delivery, Yen 2.95 for Jun 4 delivery, Yen 5.12 for Jun 5 delivery, and Yen 3.19 for Jun 6 delivery.

The fuel market trends in the first week of June were detailed as follows.

DES Northeast Asia spot LNG prices leveled off in the low $12 level per mmBtu for prompt June 2025 arrival as of Jun 5, steady from the end of the previous week (May 30). The LNG market in Northeast Asia weakened at the beginning of the week, in tandem with European natural gas prices. But LNG prices crept up later in the week. The Ministry of Economy, Trade and Industry (METI) announced on Jun 4 that Japan's LNG inventories for power generation stood at 2.26 mil mt as of Jun 1, up 100,000mt from a week before. The figure was up both from 2.13 mil mt as of end-June last year and the average of past five years at 2.10 mil mt.

FOB Newcastle thermal coal prices in Australia stood at $105 for June 2025 loading as of Jun 5. The level was up more than $4 from the end of the previous week. Coal production in Australia was seen still hampered by a flooding.

In the crude oil market, WTI crude for July 2025 stood in the low $63 level per barrel as of Jun 6 afternoon while Brent crude for August 2025 was trading in the low $65 level. Both WTI and Brent were up about $2.50 from the end of the previous week. Crude futures were bolstered by escalating geopolitical risks in Iran and Russia, on top of a progress in trade talks between the US and China.

The actual highest price during the week was at Yen 22.88 in five areas from Tohoku and Tokyo for May 29 delivery. Meanwhile, the actual lowest price during the week was at Yen 0.01 in Tohoku and Tokyo for Jun 2 delivery, Tohoku, Chugoku, Shikoku, Kyushu and the System Price (SP) for Jun 4 delivery, eight areas except Tokyo and SP for Jun 5 delivery, and Hokkaido, Tohoku, Chugoku, Shikoku and Kyushu for Jun 6 delivery.

By area, the weekly average of the 24-hour spot prices was at Yen 7.17 in Hokkaido, down Yen 0.22 from the previous week, Yen 8.77 in Tohoku, down Yen 1.49, Yen 11.72 in Tokyo, down Yen 0.38, Yen 9.38 in Chubu, up Yen 1.09, Yen 8.97 in Hokuriku and Kansai, up Yen 1.91, Yen 7.58 in Chugoku, up Yen 0.56, Yen 7.53 in Shikoku, up Yen 0.59, and Yen 7.49 in Kyushu, up Yen 0.71.

In the JEPX auction, volumes of offers were 1,173.96 mil kWh on a weekly average basis, up 7.0% from the previous week. Meanwhile, bids on a weekly average basis grew by 5.8% to 872.55 mil kWh. The weekly average of trade volumes expanded by 7.0% to 715.72 mil kWh.

Power demand in nine areas of Japan during Jun 2-6 was a combined 10,488.92 mil kWh, up 3.4% from 10,143.91 mil kWh during May 26-30. The figure was down 1.1% from the corresponding period a year earlier. Demand during Jun 3-7, 2024 after day of week adjustment was 10,603.87 mil kWh.

Deals reported on TOCOM (Tokyo Commodity Exchange) during Jun 2-6 were as below.

Deals reported on EEX (European Energy Exchange) during Jun 2-6 were as below.

In the second week of June, spot prices are expected to outperform the levels in the first week. The weather is forecast to be partly rainy throughout the week, and little scope for photovoltaic generation is likely to push up spot prices led by day time. The temperatures are forecast to stay around 30 degrees in Kanto and further west from the middle of the week onward. Thus, hot and sultry weather is believed to boost air-conditioning demand. Citing the price outlook for the second week of June, a source at a power producer and supplier said, "I believe the 24-hour average will be in the Yen 13 level in East Japan and Yen 11-12 in West Japan. The East-West gap is likely to shrink amid tighter solar power supply. " The rainy season could spread to broader areas next week.