China's iron ore prices decreased considerably due to weak demand and fast rising supply.

    According to latest data from the Ministry of Commerce (MOC), the country's iron ore prices averaged 1,370 yuan per ton at end-August, down 12.2 percent from the beginning of the month.

    Over August 25-31, iron ore prices in the 36 major cities that are under price monitoring of MOC fell 8.1 percent from previous week.

    Industry experts say a turning point may arrive in October.

    They attributed the price drops to falling market demand and ample supply.

    Data shows that the country's iron ore production in the first seven months reached 460 million tons, up 13.1 percent year on year,whilst in the same period, import rose 21.8 percent to 270 million tons.

    Earlier a veteran industry expert forecasted the country's iron ore production would hit 800 million tons in year 2008.

    Because of the lower iron ore prices, about a dozen of domestic steelmakers including leading BaoSteel cut their prices one after another these days.

    But some traders hold that the cuts are temporary and prices will bounce back after a period of time. The expectations feed a wait-and-see mood among traders, resulting in piling-up inventories.

    According to official data, iron ore inventories at the country's major ports have been staying over 60 million tons for five consecutive months.