In the day-ahead market on JEPX (Japan Electric Power Exchange), the 24-hour spot power prices on a weekly average basis for Aug 25-29 delivery gained further from the previous week in East Japan (50Hz) as well as in West Japan (60Hz). Persistent hot weather through the week hiked prices. The market separation among areas influenced prices; especially, market separation during nighttime between Chubu and Kansai created the situation of higher prices in Tokyo and lower prices in Kansai, and then widened the spread by more than Yen 2.00 between East and West on certain days.

In Tokyo and Kansai, the key areas in East Japan and West Japan, the 24-hour average posted a difference in favor of Tokyo by Yen 2.19 for Aug 25, by Yen 1.15 for Aug 26, by Yen 2.29 for Aug 27, by Yen 1.78 for Aug 28, and by Yen 2.66 for Aug 29.

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

DES Northeast Asia spot LNG prices almost stayed sideways from the previous week. Prices for prompt September 2025 delivery were at mid-$11's per mmBtu as of Aug 28, up 5cts from the end of the previous week (Aug 22). In tandem with the natural gas markets in Europe, the DES Northeast Asia spot prices gained in the first half of the week and then softened in the latter half of the week. A bullish sentiment with the deadlock of truce talks between Russia and Ukraine was offset with weak buying interests from end-users in Northeast Asia. As a result, the market lacked clear direction. The Ministry of Economy, Trade and Industry (METI) announced on Aug 27 that Japan's LNG inventories for power generation stood at 2.18 mil mt as of Aug 24, up 160,000 mt from a week before. The figure was above 1.70 mil mt at the end of August last year, and the average for the past five years was 2.04 mil mt.

FOB Newcastle thermal coal prices in Australia did not change much from the end of the previous week at the mid-$109s for September 2025 loading as of Aug 28.

In the crude oil market, WTI crude for October 2025 stood at low- $64's per barrel as of the morning of August 29, while Brent crude for October 2025 was trading in the low-$68's. Prices went up by around $0.5 from the end of the previous week for WTI and Brent. No progress in ceasefire talks between Russia and Ukraine, as well as a decline in US crude inventory, pushed prices up.

The actual highest price during the week was at Yen 45.00 in Hokkaido on Aug 28; the actual lowest price during the week was at Yen 3.00 in the Shikoku area from Aug 27.

By area, the weekly average of the 24-hour spot prices was at Yen 14.54 in Hokkaido, down Yen 0.60 from the previous week; Yen 13.96 in Tohoku, up Yen 0.89; Yen 14.21 in Tokyo, up Yen 0.47; Yen 13.88 in Chubu, up Yen 0.40; Yen 12.19 in Hokuriku and Kansai, down Yen 0.09; Yen 10.98 in Chugoku, down Yen 0.40; Yen 10.20 in Shikoku, up Yen 1.71; and Yen 10.95 in Kyushu, down Yen 0.32.

In the JEPX auction, the volume of offers was 1,233.72 mil kWh on a weekly average basis, down 3.3% from the previous week. Meanwhile, bids on a weekly average basis increased by 1.0% to 1,213.89 mil kWh. The weekly average of trade volumes recorded 893.16 mil kWh, down 0.8%.

Power demand in nine areas of Japan during Aug 25-29 was a combined 14,487.19 mil kWh, down 0.3% from 14,528.15 mil kWh during Aug 18-22. The figure was up/down 7.9% from the corresponding period a year earlier, which was 13,420.67 mil kWh during Aug 26-30, 2024, after day-of-week adjustment.

Deals reported on TOCOM (Tokyo Commodity Exchange) during Aug 25-29 were as below.

Deals reported on EEX (European Energy Exchange) during Aug 25-29 were as below.

Prices for the first week of September were expected to rise further. While the inspection was scheduled to start at some thermal power plants on Sep 1, scorching weather would continue nationwide until Sep 3. Moreover, the maintenance work for the frequency converter between Tokyo and Chubu would commence starting from Sep 1, which was expected to reduce the capacity of power grids and then raise power prices in the Tokyo area. "Given the weather and operations of thermal power plants, prices in Tokyo for the first half of the week may reach beyond Yen 15.00. In the second half of the week, however, prices will incrementally soften due to the easing hot temperature; they will probably fall to around Yen 13.00. In Kansai, prices will hover at the level below Yen 2.00 from Tokyo," a source at a power producer and supplier said.