In the day-ahead market on JEPX (Japan Electric Power Exchange), the 24-hour spot power prices on a weekly average basis for Jul 7-11 delivery retreated slightly from the previous week in East Japan (50Hz) but gained in West Japan (60Hz). A spell of scorching weather nationwide through the week caused robust demand for air conditioning, spilling over to prices. Moreover, unsettled weather curved outputs from photovoltaic power plants, along with outages of hydropower plants due to massive rain, working as a bullish sentiment in the market. In East Japan, however, temperatures dropped sharply on Jul 11, curbing demand for air conditioning. As a result, prices in East Japan tumbled on Jul 11, bringing mean weekly prices down from a week earlier. In Tokyo, the maximum temperature on Jul 11 was around 25 degrees Celsius, down 10 degrees from the extremely hot Jul 10.

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 0.50 for Jul 7 delivery and by Yen 0.36 for Jul 8 delivery but flipped in favor of the West from Jul 9 onwards with by Yen 1.14 for Jul 9 delivery, by Yen 0.11 for Jul 10 delivery, and by Yen 0.44 for Jul 11 delivery.

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

DES Northeast Asia spot LNG prices rebounded to mid-$12's per mmBtu for prompt August 2025 delivery as of Jul 10, up about $0.2 from the end of the previous week (Jul 4). Amid a lack of drivers in the market, strengthened natural gas markets in Europe raised DES Northeast Asia prices. The Ministry of Economy, Trade and Industry (METI) announced on Jul 9 that Japan's LNG inventories for power generation stood at 2.00 mil mt as of Jul 6, down 150,000mt from a week before. The figure was up from 1.94 mil mt as of the end of July last year but down from the average of the past five years at 2.15 mil mt.

FOB Newcastle thermal coal prices in Australia gained by more than $1 from the end of the previous week to $111 for July 2025 loading as of Jul 10. Prices moved in tandem with gas prices.

In the crude oil market, WTI crude for August 2025 stood over $67 per barrel as of the morning of July 10, while Brent crude for September 2025 was trading over the $69 level. Prices gained by around $0.5 from the end of the previous week for WTI and by around $0.7 for Brent on the expectation for the summer demand and geopolitical risk in the Middle East. Israeli forces on Jul 7 air-bombed several ports controlled by the Houthis, a militant pro-Iranian organization in Yemen. The attack by Israel was regarded as a retaliation against the attacks by Houthis on commercial ships sailing in the Red Sea on Jul 6.

The actual highest price during the week was at Yen 35.25 in six areas from Hokkaido through Kansai for Jul 8 delivery as well as in Hokuriku/Kansai areas for July 9 delivery. Meanwhile, the actual lowest price during the week was at Yen 6.50 in Hokkaido and Tohoku for Jul 8 delivery.

By area, the weekly average of the 24-hour spot prices was at Yen 13.88 in Hokkaido, down Yen 0.07 from the previous week; Yen 13.97 in Tohoku, down Yen 0.60; Yen 15.67 in Tokyo, down Yen 0.12; Yen 15.84 in Chubu, up Yen 0.46; Yen 15.84 in Hokuriku and Kansai, up Yen 1.49; Yen 14.03 in Chugoku, up Yen 1.47; Yen 13.73 in Shikoku, up Yen 1.27; and Yen 13.88 in Kyushu, up Yen 1.36.

In the JEPX auction, volumes of offers were 1,221.94 mil kWh on a weekly average basis, up 3.8% from the previous week. Meanwhile, bids on a weekly average basis increased by 6.2% to 1,145.58 mil kWh. The weekly average of trade volumes recorded 893.82 mil kWh, up 5.0%.

Power demand in nine areas of Japan during Jul 7-11 was a combined 14,221.74 mil kWh, up 2.4% from 13,883.09 mil kWh during Jun 30-Jul 4. The figure was up 6.1% from the corresponding period a year earlier. Demand during Jul 8-12, 2024 after day of week adjustment was 13,404.96 mil kWh.

Deals reported on TOCOM (Tokyo Commodity Exchange) during Jun 7-11 were as below.

Deals reported on EEX (European Energy Exchange) during Jul 7-11 were as below.

In the third week of July, spot prices were expected to decline from the second week of July. The softened buying interests owing to the easing hot temperatures would put a lid on the prices. Moreover, enhancing supply capacity with the return of thermal power plants from maintenance in the latter half of the week would work as a bearish factor. Asked about the outlook for the next week, a source said, "Prices will fall from the level where scorching weather has pulled them up so far. In Tokyo, base prices for the third week will hover sub-Yen 15. In Kansai, the prices will trade either at the same as Tokyo or slightly below."