Shanghai steel futures were around CNY 4700 per tonne, close to levels not seen since late October, amid limited supply, rising iron ore and nickel prices and prospects of a demand boom. Production in China is likely to be constrained due to factories maintenance in the first quarter, the Lunar New Year holidays and the desire to limit pollution over the Beijing Winter Olympics. At the same time, prices of steelmaking ingredients nickel and iron ore remain elevated, with possible supply disruptions in top iron ore exporter Australia due to a surge in coronavirus virus cases weighing. Meanwhile, there are prospects demand in China will increase in the second quarter of the year as the construction and infrastructure sectors pick up and the Chinese authorities adopt stimulus measures to shore up the economy. Historically, Steel reached an all time high of 6198 in May of 2021.