The 62% Fe benchmark fines price was uncharacteristically stable month-on-month in May. Iron ore pricing spreads also remained consistent – and constantly wide. The upcoming Shanghai Cooperation Organisation summit in June could introduce some familiar volatility to prices, but any effect will be short-lived and we do not expect prices to stray far from US$65/tonne. With 62% Fe prices remaining range bound, price spreads will be the key to determining which sources of supply will exit the market – this must happen before prices can make a decisive break from current levels. The process has begun but has further to run.