Quebec Business Trends
Many Species Sell Well Despite Turmoil
As winter seemed to drag on with no end in sight, businesses in certain areas of the province were getting anxious to replenish their inventories for stocks that were in short supply. Sales activity was positive for Soft Maple, Hickory and Cherry. White Oak is a strong seller, commented contacts. Some export markets are being affected by the war in Iran.
Production of Ash is limited due to lack of log availability. Green supplies are sufficient to meet market needs. Demand for kiln-dried Ash from overseas markets is better than for domestic markets.
The regionally important species Hard Maple is reported to have cooled from levels reported earlier this year. As demand for kiln-dried supplies are lower, production was reduced accordingly. With regards to Soft Maple, business has been steady to established customers, including cabinet manufacturers. Contacts comment SAP & Better grades are stronger than for Unselected, as well as for No. 1 Common & Better than for No. 2A Common.
Cherry production has increased and is shipped to China at a steady pace. Kiln-dried prices have risen, caused by increased demand for this species.
Hickory sales, noted contacts, improved in mid-April. Flooring manufacturers increased their purchased volumes. Prices for green Hickory were reported as lifting for most grades.
Some businesses exporting Red Oak to China stated demand continues to be steady at the time of this writing. Red Oak on domestic markets was starting to see some activity, although at a slower pace. This is due to the slow start to the housing sector. Supplies in certain areas were exceeding demand for green stocks, while transactions pointed to steady prices for kiln-dried materials.
White Oak was also reported as selling well at the time of this writing, keeping pace with production.
Poplar markets are good, but it was noted that demand varies according to grades and thicknesses with some being equal for supply and demand, while others are outweighing market demand.
Walnut supplies were reported as being adequate for market demand. Concentration yards monitored green lumber receipts as a result instead of searching for more as was the case earlier this year. Order files continued to be decent, reported contacts.
Soft Maple, Hickory and Cherry trend during a scramble to replenish stock.
Canada and Quebec recently announced a joint effort to create nearly 865 new affordable, supportive, and transitional homes across the province, backed by a combined investment of $200 million. The announcement follows the memorandum of understanding signed earlier in the year to guide the rollout of Build Canada Homes funding in Quebec. Federal Minister Gregor Robertson and Quebec Housing Minister Caroline Proulx highlighted the initiative during an event in Québec City, where they also confirmed funding for Îlot Saint Vincent de Paul—one of the first projects to advance under this partnership.
The plan includes 14 supportive and transitional housing projects that will deliver more than 390 homes for people experiencing or at risk of homelessness, survivors of domestic violence, people with disabilities and individuals with complex mental health needs. These projects will be funded through a shared federal provincial contribution of roughly $65 million each, with Quebec also covering operating costs and coordinating long term community supports. In addition, four affordable housing projects will create nearly 475 homes, supported by equal contributions of about $35 million from both governments.
Federal representatives noted that the partnership is helping accelerate construction and respond to urgent housing pressures, while Quebec officials underscored that the province is moving quickly while maintaining its jurisdictional authority. Local leaders celebrated the revitalization of long vacant sites, such as Îlot Saint Vincent de Paul, which will become a new inclusive community space after nearly four decades of inactivity. Build Canada Homes and the Société d’habitation du Québec both highlighted the importance of coordinated efforts to scale up affordable housing and streamline development processes.
The announcement builds on the launch of Build Canada Homes in 2025 and the January 2026 agreement that established a Joint Collaboration Table to align federal, provincial, municipal and community partners.
Canada’s annual inflation rate rose to 2.4 percent in March, driven largely by a record-breaking spike in gasoline prices. Statistics Canada reported that gas prices jumped 21.2 percent in a single month — the largest monthly increase ever recorded — as the war in Iran disrupted global oil supply, particularly through the Strait of Hormuz. Energy prices overall were 3.9 percent higher than a year earlier, and the surge in fuel costs pushed transportation prices up 3.7 percent year over year in March.
Food inflation also ticked upward, with grocery prices rising 4.4 percent year over year. Fresh vegetables saw especially sharp increases, up 7.8 percent, due to difficult growing conditions affecting certain crops.
Economists had anticipated a significant rise in gas prices because the conflict has cut off roughly one fifth of the world’s oil supply, causing fuel shortages and price spikes globally. Some analysts expect fuel costs to continue climbing in the short term, though the federal suspension of the fuel excise tax was expected to help ease pressure starting in May.
Despite the jump in headline inflation, core inflation — which excludes volatile items like gasoline — was milder than expected. Economists noted that if not for the conflict, discussions would likely be focused on potential interest rate cuts rather than hikes.
