Newcastle coal futures, the benchmark for top consuming region Asia, fell below the $400 per tonne mark from September highs of around $450 per tonne, as China pledged to raise coal production capacity this year by 300 million tonnes, which is about equivalent to the amount of coal China usually imports each year. Adding to woes, Chinese coal imports for August were 15% lower compared to the same period last year, as demand remained weak due to the continued restrictive COVID policy. Still, the likelihood of a cold winter, constraints on the Chinese rail network, and a much depleted hydro generation system after historic droughts may boost the prices in the medium term.