Coal futures surged to above $140 a ton in July, the highest level in a decade on supply constraints and higher demand. Warm northern hemisphere summer increased demand for air conditioning in Japan, South Korea, and the United States. Also, pressure comes from China, as drought knocked hydropower generation in Yunnan province and output restrictions remain in place in Shanxi production hubs amid tighter safety inspections and environmental curbs. Meanwhile, supplies remain constrained because of flooding in Indonesia and Australia, the closing of mine in Colombia, and distorted trade flows caused by a Chinese ban on Australian coal.