The sedimentation of fibre suspensions at low Reynolds number is studied using two different, but complementary, numerical simulation methods: (1) Monte Carlo simulations, which consider interparticle hydrodynamic interactions at all orders within the slender-body theory approximation (Mackaplow & Shaqfeh 1996), and (ii) dynamic simulations, which consider point-particle interactions and are accurate for suspension concentrations of nl(3)much less than 1, where n and I are the number density and characteristic half-length of the fibres, respectively. For homogeneous, isotropic suspensions, the Monte Carlo simulations show that the hindrance of the mean sedimentation speed is linear in particle concentration up to at least nl(3) = 7. The speed is well predicted by a new dilute theory that includes the effect of two-body interactions. Our dynamic simulations of dilute suspensions, however, show that interfibre hydrodynamic interactions cause the spatial and orientational distributions to become inhomogeneous and anisotropic. Most of the fibres migrate into narrow streamers aligned in the direction of gravity. This drives a downward convective how within the streamers which serves to increase the mean fibre sedimentation speed. A steady-state orientation distribution develops which strongly favours fibre alignment with gravity. Although the distribution reaches a steady state, individual fibres continue to rotate in a manner that can be qualitatively described as a flipping between the two orientations aligned with gravity. The simulation results are in good agreement with published experimental data.