About Pribec

Pribec composite price ($CAN)

 

Pribec: mission
Published for the first time in January 1976, Pribec’s original mission was to provide information on lumber prices (softwood and hardwood) for the Montreal market only. Over the years, several other markets were added. Despite this expansion, the primary mission of Pribec has remained unchanged: it is first and foremost a price guide and a valuable reference tool. Regardless of the state of the market, Pribec delivers consistent, specific and objective monitoring of the lumber market for all of eastern North America. From this perspective, Pribec does not seek to influence or anticipate the market: its aim is merely to report and analyze the facts on behalf of its subscribers who must operate a competitive environment.


Readership

Pribec was first created to meet the needs of the membership of the QLMA. It quickly became a reference tool for the eastern North American lumber market of. Today, Pribec has many subscribers who are non-members and who appreciate its continually updated – the content.


Pricing

Pribec’s pricing information is developed primarily from telephone surveys and, to a lesser extent, from email data. A number of producers and brokers (wholesalers and distributors) – QFIC members and non-members alike – are surveyed, thus contributing to the accuracy of the information disseminated.


During the survey, the respondent indicates the transaction price and not the quoted price. Theoretically, the price published by Pribec should represent a mathematical average of prices obtained from the respondents for each item. In fact, an average could skew the true situation of markets. To circumvent this pitfall, Pribec gives an assessment of market prices, which are not necessarily average prices.

 

According to the calculations used at Pribec, the market price is the price a buyer would pay for a product of equivalent grade sold by a producer under conditions similar to those of another producer. This price is established on the basis of the selling price of the majority of the producers or the purchase price (at sawmills) paid by the majority of brokers.


Several other factors enter into pricing. Pribec’s writer notes the volumes sold for the reported price, the lot tally and grade, sawmill location, delivery times, etc. The writer’s judgment and experience have an impact on calculations of the market price.


Inter-market price differentials

In 1976, Pribec surveyed and analyzed the Montreal market only. More than 30 years later, it covers several Canadian and U.S. markets that are recognized as poles of attraction for lumber from the eastern part of the continent. The published prices represent the prices of products delivered to these markets compared to a benchmark city. Under normal conditions, the price differential that exists between two markets – Montreal and Toronto, for example – should reflect only the cost of transportation. Many producers already calculate their quoted prices in this way.


However, the prices published in Pribec are transaction prices and not quoted prices. Since the level of activity may vary from one market to another, the price differential may also vary. In Pribec, in order to enhance the accuracy of information, the price differential is based first on the degree of activity in the market, and not just the distance between the various markets. In short, Pribec strives to deliver clear, accurate, up-to-date information while also evolving to reflect the needs of its subscribers.

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