CRP Market Development & Commodity Sales 1 — Questions and Answers
Question 1: What document specifies the quality standards and contamination limits a recyclable commodity must meet before a broker or end-market will purchase it?
- Material specification sheet (Correct answer)
- Waste characterization study
- Recycling rate report
- Chain-of-custody certificate
Correct answer: Material specification sheet
A material specification sheet (or end-market spec) outlines the grade, moisture content, and contaminant tolerances a commodity must meet for purchase.
Question 2: Which market factor most directly affects the price a MRF receives for sorted aluminum cans?
- London Metal Exchange (LME) spot price (Correct answer)
- Consumer Price Index (CPI)
- Local disposal tipping fee
- Glass cullet demand index
Correct answer: London Metal Exchange (LME) spot price
Aluminum scrap prices are closely tied to the London Metal Exchange spot price, which sets the global benchmark for aluminum trading.
Question 3: A recycling coordinator wants to develop a local end-market for food-grade recycled PET. Which certification is most important for a plastics reclamer to hold?
- FDA Letter of Non-Objection (LNO) (Correct answer)
- ISO 14001 certification
- EPA RCRA permit
- ASTM D6400 compostability mark
Correct answer: FDA Letter of Non-Objection (LNO)
An FDA Letter of Non-Objection confirms that a recycled PET process meets food-contact safety standards, enabling food-grade packaging use.
Question 4: What is 'contamination risk' in the context of recyclable commodity marketing?
- The possibility that non-recyclable materials in a load reduce its market value or cause rejection (Correct answer)
- The likelihood of hazardous spills at a MRF
- Consumer confusion about which bin to use
- Price volatility due to foreign markets
Correct answer: The possibility that non-recyclable materials in a load reduce its market value or cause rejection
Contamination risk refers to the financial and market risk that prohibited materials mixed into a load will lower its grade, trigger deductions, or result in outright rejection.
Question 5: Which type of contract gives a MRF the most price stability for its outbound commodity stream?
- Long-term fixed-price offtake agreement (Correct answer)
- Spot-market sale
- Revenue-share brokerage deal
- Index-linked quarterly contract
Correct answer: Long-term fixed-price offtake agreement
A long-term fixed-price offtake agreement locks in a guaranteed price for a set period, shielding the MRF from commodity price swings.
Question 6: What does 'post-consumer recycled content' (PCR) mean in a product marketing context?
- Material that has been used by consumers and diverted from landfill before being reprocessed into new products (Correct answer)
- Material rejected during manufacturing and sent back for reprocessing
- Material collected from retail back-of-store programs
- Virgin material blended with industrial scrap
Correct answer: Material that has been used by consumers and diverted from landfill before being reprocessed into new products
Post-consumer recycled content specifically refers to material that passed through end-consumer use and was diverted from the waste stream, distinguishing it from pre-consumer or industrial scrap.
CRP Market Development & Commodity Sales 1
What document specifies the quality standards and contamination limits a recyclable commodity must meet before a broker or end-market will purchase it?