Recycling Market Development & Commodity Markets Flashcards
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What is a 'tip fee' or 'processing fee' that a MRF may charge municipalities?
Answer: A per-ton fee charged to the municipality to process collected recyclables
When commodity revenues are insufficient to cover MRF operating costs, the facility charges municipalities a tip fee per ton of material delivered for processing.
Which of the following best describes a 'secondary materials' market?
Answer: The trading market for post-consumer and post-industrial recovered materials
Secondary materials markets involve buying and selling post-consumer and post-industrial recyclable commodities that will be reprocessed into new raw materials.
What is 'basis weight' and why does it matter in recovered paper grading?
Answer: The weight of paper per unit area that determines its grade classification and pricing
Basis weight (pounds per 500-sheet ream at a standard size) helps classify recovered paper into grades like OCC, ONP, or mixed paper that carry different market values.
What does 'domestic market preference' mean in sustainable procurement for recycling?
Answer: Prioritizing US-based buyers for recovered materials to reduce transport costs and market risk
Domestic market preference policies encourage selling recovered materials to US-based manufacturers to support local jobs and reduce dependence on volatile export markets.
Which metal is considered the highest-value commodity in typical curbside recycling streams?
Answer: Aluminum cans
Aluminum cans command the highest per-pound value among common curbside recyclables due to the significant energy savings from recycling aluminum versus virgin production.
What is a 'revenue-sharing agreement' in the MRF–municipality relationship?
Answer: A contract where the MRF pays the municipality a portion of commodity sales revenue
Revenue-sharing agreements specify that the MRF remits a percentage or fixed amount of commodity revenue to the contracting municipality, often based on market price benchmarks.