September/October 1989
Si Wakesberg. The man is a fixture in the metals industries—part sage, part historian. Here are a few thoughts and impressions from this master metals reporter.
By Robert J. Garino
Robert J. Garino is director of commodities at the Institute of Scrap Recycling Industries, Washington, D.C.
Having reported on the metals industry for more than three decades, Si Wakesberg's contacts and friends read like a veritable Who's Who in the primary, secondary, and scrap metals industries. As a longtime friend observed: "The remarkable thing is that Si has written knowledgeably and intelligently about all the nonferrous metals—as well as ferrous scrap—in a way that has been informative, interesting, and literary."
Si Wakesberg has a writing style that easily ranges from scrap specifications language to poetry (his end-of-year reviews in rhyme are classics). He is as at home at a scrap seminar as he is at the theater (Si has a special passion for music). His demeanor radiates warmth. He is that rare kind of person you instinctively like and respect the moment you're first introduced. And time hasn't altered that.
The man truly has seen it all. Si began his early career in scrap and metals as editor of the Waste Trade Journal and the Daily Metal Reporter, both in New York City. He joined the National Association of Waste Material Dealers (NAWMD) in September 1958, and served the association through its transition into the National Association of Secondary Material Industries (NASMI) and the National Association of Recycling Industries (NARI) and its incorporation with the Institute of Scrap Iron and Steel (ISIS) into the Institute of Scrap Recycling Industries (ISRI). For more than 30 years, he has written literally volumes on the scrap industry—about 2 million words’ worth.
At ReMA's convention this past March, Si, who is a past recipient of the scrap industry's prestigious Phoenix Award, was recognized by ReMA President Richard E. Abrams and First Vice President David Serls as "one of the treasures of this industry and our association... whose opinions are sought out, whose insights are respected, and whose leadership has meant a great deal."
He has done more than report: Si has initiated numerous metals workshops, seminars, roundtables (which continue today), and, of course, ReMA's "Commodities" newsletter—still referred to in some metal circles as Si's "Greensheet" (even though it is no longer green).
Q: What prompted publishing the "Metals Report"—the so-called Greensheet?
A: When the first issue was introduced [September 1958], there really was no steady line of information published on the scrap metals industry. Although the "Metals Report" covered all metals, it heavily accented scrap.
Q: You're also closely associated with writing and developing nonferrous scrap specifications. How did this come about?
A: When I first got involved with specifications, the scrap industry was realizing that it needed to share and expand its information on prepared scrap. Consequently, it was believed that formalized scrap specifications offered the best protection for both sellers and consumers—particularly export consumers who were increasingly looking to the U.S. market.
Q: Why did you start the roundtable programs?
A: I thought it important to start a series of meetings devoted exclusively to one metal. The first Aluminum Roundtable was held in June 1975. While only 60 people came, today our Aluminum Roundtable draws more than 400 industry leaders. Interestingly, looking over that first program, I see names that are still active today, such as Stuart Cohn, Sandy Cortopassi, and Jerry Solomon.
Q: Are there industry giants or unique personalities who come to mind?
A: I have been impressed by the character and integrity of many. Old-timer names that come to mind include the Wilkoffs of Cleveland, the Shapiros, Klaffs, and Plants of Baltimore, the Bonomos of Jersey City. Outstanding personalities include Sidney Danziger, Irving Lipkowitz, Simon Strauss, Fritz Rosenthal, Kurt Leburg, Jake Feldman, and Dr. Joseph Zimmerman. The list could go on.
Q: In what respect is the metals industry different today than, say, 30 years ago?
A: I can think of many changes, but I'll comment on just a few. Perhaps the most important change has been the decline of producer list prices for most base metals. Thirty years ago, primary metal producers wielded considerable pricing power and a tug of war ensued between producer list tags and the daily quotations offered on exchanges such as the LME and COMEX. It appears today that the exchange prices are the dominant influence.
Another difference has been the decline in the U.S. mining industry, caused in part by subsidized offshore mining and smelting projects. Over the decades, these producers have continued to mine and sell metal regardless of price or level of overall economic activity.
The scrap market itself has changed due to mergers, acquisitions, and more. While maintaining some of the characteristics of a small business, scrap processing is a larger, more concentrated industry.
There also are geographic disparities today. Many consumers in the Northeast U.S.—for example, brass mills, ingot makers, refineries—have disappeared or moved. Very little scrap consumption occurs in the East—it's more likely exported. Also, 30 years ago, I don't think there were but a few aluminum or copper brokers around. The brokerage business-scrap and refined metals-has grown while, at the same time, we've seen the decline of large, powerful merchant houses. Certainly, there are still a few large trading firms that exist and play an important commercial role, but many others have vanished—not to return.
Q: Of all your work for NARI, aside from the newsletters, what afforded you the most satisfaction?
A: Without a doubt it was the metals seminars, held the first year at Michigan State University and in later years at the University of Wisconsin and the University of Chicago. The industry executives who worked on these seminars and with whom I was privileged to spend a good deal of time were men of the highest caliber who dedicated their time, efforts, energy, and resources to uplift the educational level of the recycling industry. The seminars educated several generations of young executives, who then took their places at the forefront of the scrap business. Some even became teachers at succeeding seminars. It was a highly rewarding experience.
Q: Since scrap processors are traditionally long [they buy in anticipation of a future sale], why haven't they embraced the concept of hedging?
A: Some do hedge, of course, but many processors are generally small and cautious; they resist going outside their business. Using COMEX to hedge their copper, for example, constitutes a risk of sorts and dealers would rather engage in risks they're best acquainted with-their own day-to-day business operations.
Q: Should items such as cobalt, nickel, chrome, in scrap form, be included in the national stockpile?
A: The government has never been receptive to stockpiling scrap, although I do recall when post-World-War-II brass scrap was inventoried in the national stockpile. Perhaps, however, it is time the government set up a study group to look into the possibility of stockpiling scrap-containing metals such as cobalt and chrome. This study group should work closely with industry and trade associations and explore the practicality.
Q: Trade associations evolve. How was NARI different from NASMI? What prompted the name change?
A: The name changes from NAWMD to NASMI to NARI show an interesting evolution in words: from waste as a somewhat disparaging term, to secondary materials, which constituted an elevation in usage, to recycling, which, I felt, became a word of approbation.
Q: Looking down the road, do you anticipate ReMA members, the majority of which are metal scrap processors, getting more involved with postconsumer wastes such as glass and plastic?
A: It is particularly important for this industry to become familiar with plastics and, in my view, to strike out to become plastics processors. There are only certain times in industry when opportunities present themselves, and only the most forward-looking can take advantage. Look at the used all-aluminum can: I recall that processors and melters were rather cool to it, but a few understood the long-term commercial implications. Perhaps today, the same may be said for the steel can, glass, and especially plastics.
Q: What do you see ahead for the recycling industry?
A: I foresee a strong and flourishing business with great opportunities for imaginative executives. But I also think it will be an aggressive and competitive industry and that those better educated, more technologically knowledgeable, and more up-to-date in all areas of the metals business will move to the top. If the young men and women who will be running the companies of the future can stay on course and pay attention to their own business, I think the recycling industry, as it moves into the twenty-first century, will be in strong hands.
I was preparing a lecture on metals markets for the metals seminar at the University of Wisconsin and the thought occurred to me to get a simulated crystal ball as a symbol of market forecasts. I was in Madison, Wisconsin, and I visited a dozen shops to no avail. Finally, to my surprise, I found a rather imposing store that sold equipment for fortune tellers. Yes, they had a crystal ball—-but it cost over $300! When I asked why it was so expensive, the proprietor shrugged and said: “This is a real crystal ball!”•
Si Wakesberg. The man is a fixture in the metals industries—part sage, part historian. Here are a few thoughts and impressions from this master metals reporter.