In the first working day of September, ironore still in the in a steady trend of decline,  meanwhile, tycoons of miningindustry insist to expand their production.

According to Steel Informatics ResearchCentre Monitor, iron ore futures keeping a stable speed of decreasing, 620 RMBper tons has refreshed the record of the lowest bid price. Iron ore import fromoversea market has suffered the same trouble.

   The reason should be ascribed to the “strongsupply and weak demand”. Rio Tinto Group, BHP Billiton, Vale and FMG, as four leadingenterprises, have increased their productions in the first half year. Eventhought the price has reached the rock bottom among the last five years, butthere are still considerable profits for them to earn. Tycoons are continue toincrease their output in order to occupy market shares and squeeze somehigh-cost companies in a small or medium size out of this market.

Chinese demand of iron ore is predicted toremain stagnant. The demand has only raised 0.4% in the first half yearaccording to the data analyzed by CISA. As China consumed 60% iron ore of thewhole world, it is sure that the demand of iron ore were be slow down.