Iron ore’s meteoric rise continued through July, with the benchmark 62% Fe index averaging $120/t CFR, a fresh five year high. Having started the year at $75/t CFR, iron ore has now risen by 60%, a phenomenal and quite unexpected performance. Chinese rebar prices gained 5% over the same period while Australian coking coal is down 5%. Where to from here? On balance we believe the case for monthly average prices holding above $120/t CFR is increasingly hard to justify and we forecast mild downward pressure on prices through August.