Market Development & Commodity Sales Flashcards
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Read the first 6 Market Development & Commodity Sales flashcards as text
Which international standard framework is most commonly used by recyclers to verify and communicate the chain of custody for recycled content claims in manufactured products?
Answer: Recycled Claim Standard (RCS) / Global Recycled Standard (GRS)
The Recycled Claim Standard and Global Recycled Standard provide third-party audited chain-of-custody certification that verifies recycled content percentages in products.
What economic concept explains why a recycling program may be justified even when commodity revenues don't cover operating costs?
Answer: Avoided disposal cost
Avoided disposal cost — the tipping fees and landfill airspace costs saved by diverting materials — often makes recycling economically justifiable even when market prices are low.
A recycling professional is marketing sorted OCC (old corrugated containers) to domestic mills. Which quality parameter do paper mills most frequently specify?
Answer: Moisture content and bale density
Paper mills specify moisture content (typically below 12%) and bale density because excess moisture adds weight without value and poor bale density increases freight cost.
What is the primary purpose of a 'floor price' clause in a recyclable commodity offtake contract?
Answer: To guarantee the seller a minimum price per ton regardless of market conditions
A floor price clause protects the recycling program by ensuring it receives at least a minimum payment per ton even if market commodity prices fall below that level.
Which action best positions a MRF to attract premium-paying domestic end-markets for mixed rigid plastics?
Answer: Invest in optical sorters to separate plastics by resin type and color
Optical sorting technology separates mixed plastics by resin type and color, producing cleaner, higher-value streams that meet domestic reclaimers' strict specifications.
What does 'negative commodity value' mean for a recycling program's budget?
Answer: The MRF must pay to have the material removed rather than receiving revenue for it
Negative commodity value means end-markets will not pay for the material and instead require the MRF or program to pay a fee for someone to accept and process it.