In commodities it usually means that the short term supply is lower than what everyone believes will exist in the future. The problem for the next several months however is that weather could curtail more supply from coming to the market and some mines are closing, so you would do well if you believe future supply will not increase to buy futures in IO two months out so you will still be in the winter months.
What all of these traders will soon realize is that the average age of vehicles in the United States is around eleven years and is higher (older vehicles) in much of the world. A huge demand for steel is building - especially when you look at the eventual worldwide need for infrastructure. Commodity futures traders now think we are going into a world economic recession. I think they are totally in error and will realize that in about six months. Watch iron ore futures skyrocket at that time.