Market Development & Commodity Sales Flashcards
6 cards from real CRP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Market Development & Commodity Sales flashcards as text
When commodity markets collapse and recyclables have negative value, what term describes the fee a MRF charges a municipality to process those materials?
Answer: Processing fee (or tip fee)
A processing fee (sometimes called a tip fee) is charged by the MRF to cover sorting and handling costs when commodity revenue falls short.
Which recycled commodity is most susceptible to price volatility driven by overseas export demand, historically affecting US MRF economics?
Answer: Mixed paper and cardboard (OCC/ONP)
Mixed paper and OCC prices have historically been highly volatile because US MRFs relied heavily on Chinese export markets, which restricted imports under China's National Sword policy in 2018.
A CRP is evaluating two bids for sorted HDPE natural containers. Bid A offers $0.28/lb delivered to a broker; Bid B offers $0.22/lb with the MRF paying $0.04/lb shipping. Which is the better net return?
Answer: Bid A at $0.28/lb net
Bid A yields $0.28/lb with no additional cost, while Bid B nets only $0.18/lb after the $0.04/lb shipping cost, making Bid A superior.
What strategy can a recycling program use to increase demand for recovered glass when traditional bottle-to-bottle markets are limited?
Answer: Develop alternative end-markets such as fiberglass insulation, road base aggregate, or sandblasting grit
When bottle-to-bottle glass markets are saturated or unavailable, alternative uses like insulation, road aggregate, and abrasives provide lower-value but viable demand outlets.
Which term describes a recycled-content purchasing requirement written into government procurement contracts to stimulate demand for recovered materials?
Answer: Buy Recycled policy (or Comprehensive Procurement Guideline)
The EPA's Comprehensive Procurement Guideline (CPG) program requires federal agencies to purchase products with minimum recycled content, stimulating demand for recovered materials.
What is a 'spot market' sale in recyclable commodities?
Answer: A one-time sale of a load at the current prevailing market price, without a long-term contract
A spot market sale involves selling a commodity load at today's market price with no ongoing commitment, offering flexibility but exposing the seller to price fluctuations.