In the day-ahead market on JEPX (Japan Electric Power Exchange), the 24-hour spot power prices for Oct 25-29 delivery strengthened from the previous week in both East Japan and West Japan. In both areas, evening prices were recently pegged in the Yen 20 level, but night time prices also marked the Yen 20 level in several windows, pushing up the 24-hour average further. The strength in night time became more pronounced in West Japan, with the night time average outperforming the day time average from time to time in West Japan. Many market players cited curbed thermal unit runs as a main factor behind the phenomenon. Some other sources said buyers cast relatively strong bids in a bid to avert the imbalance burden.

The actual highest price during the week was at Yen 32.87 in the system price for Oct 26 delivery. The actual lowest price during the week was at Yen 0.01 in Kyushu for Oct 26-29 delivery.

By area, the weekly average of the 24-hour spot prices was at Yen 13.64 in Hokkaido, up Yen 0.87 from the previous week, Yen 13.86 in Tohoku, up Yen 0.76, Yen 14.58 in Tokyo, up Yen 1.24, Yen 16.11 in Chubu and Hokuriku, up Yen 1.09, Yen 16.06 in Kansai, up Yen 1.11, Yen 15.89 in Chugoku, up Yen 1.51, Yen 15.89 in Shikoku, up Yen 1.54, and Yen 9.19 in Kyushu, down Yen 0.40.

Power demand in nine areas of Japan during Oct 25-29 was a combined 11,143.02 mil kWh, up 0.9% from 11,048.42 mil kWh during Oct 18-22. The figure was up 2.1% from the corresponding period a year earlier. Demand during Oct 26-30, 2020 after day of week adjustment was 10,909.02 mil kWh.

In the JEPX forward market, no transactions were reported during Oct 25-29.

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

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

In the first week of November, the temperatures are forecast to remain relatively mild across Japan, and power demand is likely to slow down. The weather is forecast to be sunny for most of the week, a factor that will create ample solar power supply. With such weather conditions, spot prices are expected to remain almost stable from the last week of October. But spot prices have been strong without visible bullish factors since the beginning of October. With November futures prices pegged at high levels as well, spot prices may have a chance to test higher territory at the turn of the month.