Shougang posted an attributable net profit of 368 million yuan last year, down 10.44 percent from 2008; and an operating revenue of 22.79 billion yuan, down 7.04 percent. The decline, the mill claimed, was the outcome of stalling on export due to weak overseas demand, lower selling prices of finished steel and vast excess household capacity. While demand for steel could tend to recover this year, overcapacity and sluggish exports will continue to undermine steelmakers’ profit margin, as will the rising costs of water, electricity, coal and transport as well as the extreme precariousness of imported iron ore prices.