Not working archive template

Hello, can someone say why archive page shows all posts but not specific to that category ?

<?php get_header(); ?>

<?php /* If this is a category archive */ if (is_category()) { ?>
<h2 class="archiveTitle">Category: <strong><?php single_cat_title(); ?></strong></h2>

<?php /* If this is a category archive */ } elseif (is_tag()) { ?>
<h2 class="archiveTitle">Tag: <strong><?php single_tag_title(); ?></strong></h2>

<?php /* If this is a monthly archive */ } elseif (is_month()) { ?>
<h2 class="archiveTitle">Month: <strong><?php the_time('F, Y'); ?></strong></h2> <?php } ?>

<?php
// Show a selected number of posts per row
$posts_per_row = 4;
$posts_per_page = 8;
$paged = (get_query_var('paged')) ? get_query_var('paged') : 1;
$args = array(
   'posts_per_page' => $posts_per_page,
   'paged' => $paged,
);
query_posts($args);
if (have_posts()) {
   while (have_posts()) {
      the_post();
      if ((++$post_counter % $posts_per_row) == 1  || $posts_per_row == 1) {
         if ($post_counter > 1) {
            echo "</div><!-- End of post_row -->\n";  // End previous row
         }
         echo "<div class='post_row'>\n";  // Start a new row
      }
      echo "<div class='post_class'>\n";  // Start one post
         // Output post data here
		 ?>
    <h2><a href="<?php the_permalink() ?>" rel="bookmark" title="Template <?php the_title_attribute(); ?>">
	<?php if (strlen($post->post_title) > 40) {
	echo substr(the_title($before = '', $after = '', FALSE), 0, 40) . '....'; } else {
	the_title();
	} ?>
	</a></h2>
		 <img src='images'></img>
	<?php
      echo "</div><!-- End of post_class -->\n";  // End of post
   } ?>
   </div><!-- End of post_row -->
   <div style='clear:both;'></div>
	<div id='pagenavi'>
	<?php wp_pagenavi(); ?>
	</div>
<?php } else {
   // Code for no posts found
}
?>
<div style='clear:both;'></div>
<?php get_footer(); ?>