The weekly 24-hour average for power spot prices for May 25-29 delivery extended gains in both East Japan and West Japan from the previous week. Continued early summer-like temperature trends, an increase in cloudy days, and a decrease in solar power generation compared with the previous week served as bullish factors. Currently, it was also pointed out that bid prices have increased further, with a market trading manager at a power producer and supplier stating, 'Previously, the upside for bids was around Yen 80, but it has now risen to around Yen 90'.

The East-West spread in 24-hour average spot prices between Tokyo and Kansai was at Yen 4.74 in favor of the Tokyo on May 25, Yen 0.99 in favor of the Tokyo on May 26, Yen 1.27 in favor of the Tokyo on May 27, Yen 2.42 in favor of the Tokyo on May 28, and Yen 4.02 in favor of the Tokyo on May 29.

The fuel market in the last week of May was as follows.

DES Northeast Asia LNG spot prices for prompt June 2026 delivery stood at the low $18 level per mmBtu as of May 28, a decrease of around $0.55 from last weekend (May 22). Expectations for progress in peace talks between the US and Israel were eyed as a bearish factor. However, the situation remains unpredictable, with the US attacking Iran later in the week.

FOB Newcastle Australia thermal coal prices for June 2026 loading stood at the mid-$137 level per ton as of May 28, a decrease of around $1.00 from last weekend (May 15). The decline was smaller compared to LNG and crude oil, and increasing demand for these as alternative fuels also appeared to influence prices..

Crude oil prices as of 13:00 JST on May 29, saw the NYMEX WTI contract for July 2026 hovering at the high $87 level per barrel and the ICE Brent contract for July 2026 at the mid-$93 level. WTI fell by around $7.50 and Brent by around $9.50, respectively, from last weekend (May 22). As mentioned in the LNG section, moves by the US and Iran were eyed as a factor, intensifying downward pressure.

The week's actual high was Yen 50.01, posted in Tokyo on May 29. Meanwhile, the actual low was Yen 0.01, posted in Hokkaido, Tohoku, Chugoku, and Kyushu on May 25; in Shikoku on May 26 and 28; and in Hokkaido, Tohoku, Chugoku, Shikoku, and Kyushu on May 29.

The weekly average of the 24-hour spot prices by area and the weekly average volume of offers, bids, and trades are shown in the table below.

Power demand in nine areas of Japan during May 25-29 was 10,939.16 mil kWh, up 1.3% from 10,797.10 mil kWh during May 18-22. The figure was up 7.8% from the corresponding period a year earlier, which was 10,143.90 mil kWh during May 26-30, 2025, after day-of-week adjustment.

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

Deals reported on EEX (European Energy Exchange) during May 25-29 were as below. Daily and Weekend delivery futures in Kansai area was launched on May 26.

Power spot prices are also expected to remain firm in the first week of June. On Jun 1, many areas from southern Tohoku to Kinki(Kansai) are forecast to see temperatures exceeding 30 degrees, which is expected to lead to robust air-conditioning demand. Subsequently, while maximum temperatures are forecast to drop to around 25 degrees as the weather is expected to deteriorate nationwide, the downside for prices is likely to be limited due to a decrease in solar power generation. Regarding price trends in the first week of June, some market participants commented, "We expect prices to rise further due to expected high temperatures and increased humidity. Tokyo's base prices are seen continuing to exceed Yen 20, with a possibility of rising to Yen 22-23. Kansai prices may also move from below Yen 20 to around Yen 20," according to a market trading manager at a power producer and supplier.