Quebec Business Trends August 2026 – Red Oak, Hickory, Hard Maple Lead The Market
The heavy rain conditions and thunderstorms at the time of this writing caused flooding and power outages in Montreal and regions in southern Quebec. Fire department crews and police assisted the city regarding these floods. Following the July two-week construction break, the hardwood sector saw its usual slowdown for this provincial holiday period, but business is slowly starting to pick up. Companies in the sector must plan ahead to avoid costly delays, and hardwood businesses, too, must also take this time into consideration for their own planning purposes.
Contacts commented that log supplies were slightly lower, due to rainstorms and that green lumber sales were slower. Sales on domestic markets are mixed ranging for some from slow, to fair, to good. Supply and demand remain generally aligned.
Green Ash production is readily absorbed for No. 2A and Better for all thicknesses. Kiln-dried Ash demand is noted as fair to export markets like Europe and Asia.
Basswood is not being cut by sawmills, as the focus is on species that can be moved in larger volumes. As Basswood supply is limited, it is driving gains for kiln-dried No. 2A and Better and No. 1 Common and Better grades.
Production of Cherry continues to be shipped overseas to China, while demand on domestic markets is weaker.
Hard Maple sales remain steady, with some contacts advising of slight decrease in orders for this species. Soft Maple is reported to be doing better, although some have reported a slight downturn for this species as well.
Sales of Hickory to flooring manufacturers have improved, while kiln-dried inventories are moving well in all grades.
It was noted that sales to truck trailer flooring manufacturers had increased based on higher demand for finished goods. This upturn offset the lesser activity of some residential flooring plants and slower buying for others.
Contacts noted decent supplies of Red Oak logs and lumber were available, and green production was sufficient to meet market demand. They also noted that kiln-dried Red Oak markets were good but better for No. 1 Common and Better than for the No. 2A, although this grade was also moving well. Supply and demand of White Oak are reported to be close or almost in balance.
Poplar demand on domestic markets is steady led by millwork and moulding manufacturers. The No. 1 Common and Better grades are going to distribution yards, who are having no issues moving them to their customers. Demand from Vietnam continues to be strong for this species, while exports to China saw a drop, due to the impact of the U.S.-China tariff war and the faltering Chinese housing market. On domestic markets, ample Poplar log supplies increased lumber availability in May, leading to closely aligned supply and demand.
The Bank of Canada governor Tiff Macklem said he did not think the economy was in a recession, but he did acknowledge recent weakness – echoing economists which they say is giving leeway to the central bank to keep its key interest rate steady for the rest of the year.
The Bank of Canada maintained its benchmark interest rate at 2.25 percent on June 10th, marking the fifth consecutive hold as it navigates the challenging economic landscape. The governor noted the economy underperformed in the first quarter, influenced by U.S. trade policies and geopolitical tensions, particularly the conflict in Iran.
“Against this backdrop, the Canadian economy has remained soft and inflation has increased,” Macklem said.
Annual inflation rose to 2.8 percent in April, due partly because of the global energy shock. The Bank of Canada now expects inflation to hold around three percent in the coming months before easing back toward the central bank’s two percent target.
He said the Bank of Canada will keep looking through the short-term rise in inflation tied to the oil price shock. He also reiterated the central bank will act to prevent price pressures from becoming entrenched.
The bank is mandated to manage inflation but also tries to support the economy in the face of headwinds like U.S. trade aggression.
“Raising rates to dampen inflation could further slow the economy. Easing rates to support growth increases the risk that higher inflation becomes persistent,” he said. “For now, holding the policy rate unchanged balances those risks.”
On other fronts, the Canada-U.S.-Mexico Agreement which was due for renewal on July 1, and Trump’s lack of interest in renewing it is another concern. This could be significant as it highlights ongoing tensions in North American trade relations, which could impact Canadian businesses and consumers amid Trump’s tariffs on key sectors.
