To ensure total iron ore security, the Steel Authority of India Ltd (SAIL) has chalked out a corporate plan to produce 26 million tonnes of hot metal by 2010-11, and it has embarked on a massive de-bottlenecking exercise at its mines to ramp up production.
“SAIL will need about 42 million tonnes of iron ore by 2010-11 and to meet this requirement, a de-bottlenecking exercise has been undertaken in all the mines of the raw materials division to jack up production,” said M Roy, executive director, SAIL (raw materials division).
The de-bottlenecking exercise would be done mainly through technological upgradation, he said.
Asked about the investment for the de-bottlenecking exercise, Roy said technological upgradation would not require any big investment. “It may require only a few hundred crores,” he said.
New mines
He pointed out that the company was working on both short-term (which includes de-bottlenecking) and long-term projects (which involves development of new mines) in tandem.
SAIL’s mines would produce over 30 million tonnes iron ore by 2010-11, and the Rajhara and Dalli mines of Bhilai Steel plant, that are not under SAIL’s raw materials division, would produce the remaining.
He said it was a big challenge to push up production from the current 18 million tonnes to 30 million tonnes in about four years.
Post the de-bottlenecking process the capacity of Bolani mine would go up from 4.2 mt to 10 mt, while that of Meghahatuburu would increase from 4.3 mt to 6.3 mt.
Ore security
Similarly, Kiriburu and Gua would have an increased capacity of 5.5 mt and 4 mt, while Barsua and Chiria would be 3 mt and 1.3 mt. Another one million tonnes would be produced at Kalta mine.
Asked whether SAIL would require to purchase iron ore to meet its requirement, Roy said the company was self-sufficient in this regard.
The captive mines have always ensured iron ore security and this would continue.
Roy said SAIL also planned to develop two new mines at Chiria and Taldih after 2011.
Asked whether SAIL was still facing a problem over Chiria, he said, “We are going ahead with our plans in Chiria.”
Roy said to be able to use low grade iron ore, the company has decided to set up pelletisation plants at some of its mines.
The first pelletisation plant would come up at the Gua mine for which expression of interest had been invited. The plant would be ready by 2010.
Consultants were being appointed to set up similar plants at other mines including Kiriburi, Meghahatuburu, Barsua and Bolani.
Understanding Short Term Trading
Before I begin, this blog is not for intraday traders. My definition of short term implies duration of around 2 to 3 months.
Short Term stock picking is no rocket science, but rather a visual interpretation of technical charts. A basic moving average on a time frame chart will show the direction of the securities movement.
Moving averages is a mathematical results calculated by averaging a number of past data points. Moving averages (MA) in it's basic form is calculated by taking the arithmetic mean of a given set of values on a rolling window of timeframe. Once the value of MA has been calculated, they are plotted onto a chart and then connected to create a moving average line. Typical moving averages used for short term trading are 50 MA and 100 MA.
Types of Moving Averages
1) Simple Moving Average (SMA)
SMA is calculated by taking the arithmetic mean of a given set of values on a rolling window of timeframe. The usefulness of the SMA is limited because each point in the data series is weighted the same, regardless of where it occurs in the sequence. Critics argue that the most recent data is more significant than the older data and should have a greater influence on the final result.
2) Exponential Moving Average (EMA)
EMA overcomes the limits of SMA, where more weight is given to the recent prices in an attempt to make it more responsive to new information. When calculating the first point of the EMA, we may notice that there is no value available to use as the previous EMA. This small problem can be solved by starting the calculation with a simple moving average and continuing on with calculating the EMA.
The primary functions of a moving average is to identify trends and reversals, measure the strength of an asset's momentum and determine potential areas where an asset will find support or resistance. Moving averages are lagging indicator, which means they do not predict new trend, but confirm trends once they have been established.
A stock is deemed to be in an uptrend when the price is above a moving average and the average is sloping upward. Conversely, a trader will use a price below a downward sloping average to confirm a downtrend. Many traders will only consider holding a long position in an asset when the price is trading above a moving average.
In general, short-term momentum can be gauged by looking at moving averages that focus on time periods of 50 days or less. Looking at moving averages that are created with a period of 50 to 100 days is generally regarded as a good measure of medium-term momentum. Finally, any moving average that uses 100 days or more in the calculation can be used as a measure of long-term momentum.
Support, resistence and stoploss can be infered by referring the closet MA below or above the market price. The other factor that is used in short term momentum is the trading volume. The moving averages along with the trading volume can provide a better insight to short term movement.
Markets are moved by their largest participants - I believe this is the single most important principle in short-term trading. Accordingly, I track the presence of large traders by determining how much volume is in the market and how that compares to average. Because volume correlates very highly with volatility, the market's relative volume helps you determine the amount of movement likely at any given time frame--and it helps you handicap the odds of trending vs. remaining slow and range bound.
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