In the day-ahead market on JEPX (Japan Electric Power Exchange), the 24-hour spot power prices on a weekly average basis for Jul 28-Aug 1 delivery extended rises from the previous week in East Japan (50Hz) as well as in West Japan (60Hz). Following a week earlier, a spell of scorching weather nationwide pushed prices up. In West Japan, vast areas exceeded 35 degrees Celsius on many days, with Tamba City in Hyogo Prefecture renewing a historical national high of 41.2 degrees. In the wake of higher temperatures in the West, power spot prices have hovered higher in the West than in the East on many days.

On Jul 30, an 8.8 magnitude earthquake, whose epicenter was the Kamchatka Peninsula, triggered a tsunami warning on the Pacific coast across Japan. As a result, operations were halted or curbed at some thermal power plants standing along the coast. The moves, however, neither impacted a supply/demand balance nor prices in power.

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 0.88 for Jul 28 delivery but flipped in favor of the West by Yen 0.77 for Jul 29, by Yen 1.50 for Jul 30, by Yen 0.04 for Jul 31, and by Yen 0.87 for Aug 1.

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

DES Northeast Asia spot LNG prices rebounded to low-$12's per mmBtu for prompt September 2025 delivery as of Jul 31, up about $0.4 from the end of the previous week (Jul 25). Reflecting the solid natural gas markets in Europe, the DES Northeast Asia market increased. Buying interests, however, remained weak from end-users in Northeast Asia, especially in China, putting a lid on the prices. The Ministry of Economy, Trade and Industry (METI) announced on Jul 30 that Japan's LNG inventories for power generation stood at 1.79 mil mt as of Jul 27, down 130,000 mt from a week before. The figure was below 1.94 mil mt at the end of July last year and the average of the past five years at 2.15 mil mt.

FOB Newcastle thermal coal prices in Australia rose by around $1.5 from the end of the previous week to low $115's for August 2025 loading as of Jul 31. Prices followed strong gas prices.

In the crude oil market, WTI crude for September 2025 stood at low $69's per barrel as of the morning of August 1, while Brent crude for September 2025 was trading in the mid-$72's. Prices gained by over $4 from the end of the previous week for WTI and for Brent. The sanctions against Russia being ratcheted up by the US, along with the progress of trade talks between the US and China, raised prices.

The actual highest price during the week was at Yen 50.00 on Jul, renewing a year high. The price also recorded the highest since Dec 13 last year, when the Chubu area marked Yen 80.00. Meanwhile, the actual lowest price during the week was at Yen 0.02 in the Shikoku area for Jul 28-29 delivery.

By area, the weekly average of the 24-hour spot prices was at Yen 15.80 in Hokkaido, up Yen 4.18 from the previous week; Yen 13.71 in Tohoku, up Yen 0.88; Yen 14.70 in Tokyo, up Yen 0.72; Yen 15.66 in Chubu, up Yen 2.11; Yen 15.19 in Hokuriku and Kansai, up Yen 2.34; Yen 11.74 in Chugoku, up Yen 0.36; Yen 8.04 in Shikoku, up Yen 1.25; and Yen 11.67 in Kyushu, up Yen 1.01.

In the JEPX auction, the volume of offers was 1,341.98 mil kWh on a weekly average basis, up 1.7% from the previous week. Meanwhile, bids on a weekly average basis increased by 5.0% to 1,187.79 mil kWh. The weekly average of trade volumes recorded 924.16 mil kWh, up 2.2%.

Power demand in nine areas of Japan during Jul 28-Aug 1 was a combined 14,412.23 mil kWh, up 0.4% from 14,360.22 mil kWh during Jul 21-25. The figure was down 2.5% from the corresponding period a year earlier, which was 14,789.18 mil kWh during Jul 29-Aug 2, 2024 after day of week adjustment.

Deals reported on TOCOM (Tokyo Commodity Exchange) during Jun 28-Aug 1 were as below.

Deals reported on EEX (European Energy Exchange) during Jun 28-Aug 1 were as below.

The second week of August appeared to hover high. Extremely hot days with over 35 degrees were expected to continue from southern Tohoku through Kyushu, which would make the market solid. Seeing the strong market in West Japan, where a daily high of over Yen 40.00 was recorded in Kansai and Chubu on Aug 1, a source in charge of supply/demand control at a power producer and supplier said, "Buyers may hike bids so that they will not miss offers in terms of avoiding imbalance charges. It is possible that some players place bids above the recent high level." Another source at a power producer and supplier said, "In the second week of August, base load prices in Tokyo will hover above Yen 15.00; in the latter half of the week, when temperatures will rise to about 40 degrees even in Kanto, prices may reach Yen 17.00-18.00. In Kansai, its prices may exceed Tokyo by Yen 1.00."