Baosteel chief urges innovation in downturn

SHANGHAI - There is no King Canute to turn the tide for China's steel smelters who are wrestling with a below-average profit margin in the industrial sector, but greater efforts in structural adjustment, consistent innovation and less pollution may pay off in the long run, said an industrial leader.

"Global steelmakers have been undergoing unprecedented hardship in business operations since the outbreak of the financial crisis two years ago, and this situation will keep worsening for quite a long time," said He Wenbo, general manager of Baoshan Iron & Steel Co Ltd (Baosteel).

"Rising costs of both labor and raw materials, along with public concerns on environmental protection, have compromised the steel sector's profit. It's time to make changes," he added.