In the day-ahead market on JEPX (Japan Electric Power Exchange), the 24-hour spot power prices on a weekly average basis for Apr 15-19 delivery lost ground in both East Japan and West Japan. The weather was favorable with relatively mild temperatures mostly during the week. Looser supply-demand fundamentals boosted downside pressure on spot prices. Meanwhile, maintenance works at interconnection lines sometimes caused a fluctuation in price movements from area to area.

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 5.18 for Apr 15 delivery, Yen 5.21 for Apr 16 delivery, Yen 6.61 for Apr 17 delivery, Yen 5.64 for Apr 18 delivery and Yen 4.02 for Apr 19 delivery.

In the fuel markets, LNG and coal prices gained ground from the previous week. Crude oil prices softened marginally.

DES Northeast Asia spot LNG prices hovered in the high $10 level per mmBtu for prompt May 2024 arrival as of the latter half of the week (Apr 18), up sharply by nearly $1.50 from the end of the previous week (Apr 12). A spike in European natural gas prices lifted the LNG market in Northeast Asia. The market was bolstered by geopolitical risks in the Middle East and Ukraine, on top of disrupted gas supply in US and Norway. The Ministry of Economy, Trade and Industry (METI) announced on Apr 17 that Japan's LNG inventories for power generation stood at 1.60 mil mt as of Apr 14, stable from the previous week. The level was way below 2.44 mil mt as of end-April last year and the average of past five years at 2.02 mil mt.

FOB Newcastle thermal coal prices in Australia hovered at $141 per ton for May 2024 loading as of the latter half of the week. The level was up nearly $8 from the end of the previous week. The hike mirrored a rally in gas prices.

In the crude oil market, WTI crude for May 2024 stood in the mid $84 level as of afternoon on Apr 19 while Brent crude for June 2024 was trading in the high $88 level. Both WTI and Brent were down about $1.20-1.30 from the end of the previous week. The market was unaided by a larger-than-expected buildup in US crude oil inventories, at a time when the US would postpone cutting interest rates. But media reports said Israel launched retaliatory attacks against Iran in early hours on Apr 19, tentatively pushing up WTI to the $86 level and Brent to the $90 level.

The actual highest price during the week was at Yen 15.50 in five areas from Hokkaido to Hokuriku for Apr 15 delivery. Meanwhile, the actual lowest price during the week was at Yen 0.01 in Hokkaido, Tohoku as well as four areas from Kansai to Kyushu and the System Price (SP) for Apr 15 delivery, four areas from Kansai to Kyushu for Apr 16, four areas from Kansai to Kyushu and SP for Apr 17 delivery, five areas from Hokuriku to Kyushu for Apr 18 delivery, and six areas in West Japan and SP for Apr 19 delivery.

By area, the weekly average of the 24-hour spot prices was at Yen 8.06 in Hokkaido, down Yen 3.34 from the previous week, Yen 8.07 in Tohoku, down Yen 2.89, Yen 10.11 in Tokyo, down Yen 2.14, Yen 7.29 in Chubu, down Yen 3.88, Yen 6.15 in Hokuriku, down Yen 4.89, Yen 4.16 in Kansai, Chugoku and Shikoku, down Yen 3.24, and Yen 4.17 in Kyushu, down Yen 3.13.

In the JEPX auction, volumes of offers were 1,124.73 mil kWh on a weekly average basis, up 8.2% from the previous week. Meanwhile, bids on a weekly average basis shrank by 4.4% to 791.91 mil kWh. The weekly average of trade volumes increased by 0.7% to 635.09 mil kWh.

Power demand in nine areas of Japan during Apr 15-19 was a combined 10,287.24 mil kWh, down 2.4% from 10,725.86 mil kWh during Apr 8-12. The figure was down 3.1% from the corresponding period a year earlier. Demand during Apr 17-21, 2023 after day of week adjustment was 10,615.21 mil kWh.

In the JEPX forward market, no deals were confirmed during Apr 15-19.

Deals reported on TOCOM (Tokyo Commodity Exchange) during Apr 15-19 were as below.

Deals reported on EEX (European Energy Exchange) during Apr 15-19 were as below.

In the third week of April, spot power prices are expected to show volatile movements in line with a change in weather conditions. In the first half of the week, the weather is forecast to be partly rainy across Japan. Little scope for photovoltaic generation is believed to push up day time prices. In the latter half of the week, meanwhile, sunshine will be available in a wider range of areas, so that a growth in solar power supply is likely to pressure down day time prices. But the highest temperature is forecast to stay above 25 degrees throughout the latter half of the week. A possible pickup in air-conditioning demand is likely to affect the price trends. Furthermore, crude oil prices surged in the weekend in reaction to Israel's retaliatory attacks against Iran. The fate of fuel markets could spill over spot power prices.