Commercial Settlement
Factory billing adjustments quantify the reclaimable fibre value returned from finishing operations directly back to the repulping stream. Inside high-volume paperboard conversion contracts, a broke recovery credit deducts the intrinsic raw material value of unprinted edge trimmings and rejected roll stock from gross invoiced totals. The adjustment offsets base sheet acquisition costs while holding converting plants accountable for handling and freight logistics.
Material Valuation
Scrap valuation tracks market pulp indices, clean furnish recovery percentages and regional recovered paper benchmark prices. Unprinted boxboard trimmings yield higher financial allowances than printed or glued scrap because clean white cuttings enter the pulping cycle without requiring flotation deinking or dispersion screening. Moisture variations alter calculated payments when mill scales register high atmospheric water absorption during summer storage.
Bale contamination penalises payouts if plastic strapping or hot-melt adhesives infiltrate the returned bundles. Processors subtract hauling fees and processing costs from gross fibre values before remitting net payments. Mill contracts establish baseline allowances according to fixed recovery thresholds agreed upon during annual contracting cycles.
Contamination Limit
Chemical coatings and composite barriers terminate recovery eligibility once repulping yields drop below commercial thresholds. Polyethylene extrusions and silicone coatings prevent standard hydrapulper breakdown, converting potential fibre credits into hazardous waste disposal charges. Heavily inked solid backgrounds and ultraviolet curable varnishes diminish credit viability by requiring expensive chemical stripping sequences.