CRP Market Development & Commodity Sales 2

Question 1

When commodity markets collapse and recyclables have negative value, what term describes the fee a MRF charges a municipality to process those materials?

Accepted Answer

Processing fee (or tip fee)

Answer

A processing fee (sometimes called a tip fee) is charged by the MRF to cover sorting and handling costs when commodity revenue falls short.

Question 2

Which recycled commodity is most susceptible to price volatility driven by overseas export demand, historically affecting US MRF economics?

Accepted Answer

Mixed paper and cardboard (OCC/ONP)

Answer

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.

Question 3

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?

Accepted Answer

Bid A at $0.28/lb net

Answer

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.

Question 4

What strategy can a recycling program use to increase demand for recovered glass when traditional bottle-to-bottle markets are limited?

Accepted Answer

Develop alternative end-markets such as fiberglass insulation, road base aggregate, or sandblasting grit

Answer

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.

Question 5

Which term describes a recycled-content purchasing requirement written into government procurement contracts to stimulate demand for recovered materials?

Accepted Answer

Buy Recycled policy (or Comprehensive Procurement Guideline)

Answer

The EPA's Comprehensive Procurement Guideline (CPG) program requires federal agencies to purchase products with minimum recycled content, stimulating demand for recovered materials.

CRP - Certified Recycling Professional Practice Test

CRP - Certified Recycling Professional Practice Test

CRP Market Development & Commodity Sales 2