Quebec Business Trends November 2026 – Quebec’s Variety Of Species Handled Experience A Variety Of Market Issues And Successes
As Canada faces a provincial election, candidates have lots to consider getting people’s votes. As uncertainty due to the ongoing and unwarranted U.S. tariff war, Canada’s own tariff retaliation, and the continuing Iran war, trying to stay afloat through all these challenging times, or make a profit, while struggling to retain employees or attract new ones to fill empty positions, businesses have more than enough to deal with at present.
Some contacts noted that grade lumber was good to the distribution and moulding and millwork sectors. Pallet cants were reported as busy, selling better than grade lumber at the time of this writing. Surveys of market participants reveal that grade lumber sales are strongest to the distribution and moulding/millwork sectors. Markets for pallet cants are busy, offering more certainty than most grade lumber markets.
Ash sales are decent, particularly for kiln-dried No. 2A Common & Better, while other grades are a bit harder to move, causing certain inventories to rise slightly, but not causing worry. Green Ash sales are also reported as decent.
As China reduced its purchasing and usage of Cherry, orders are a bit harder to come by on other markets.
The regionally important Hard Maple has been experiencing steady pricing for kiln-dried transactions for the Common grades. There is reported pressure on upper-grade prices. Supply of green items are aligned with demand at the time of this writing and based on color sort.
Limited demand is closely balanced with supplies for kiln-dried Soft Maple. Green supplies are meeting buyers’ needs.
Contacts note that Hickory is performing well, with flooring plants being a main buyer. Sawmills are moving developing production well.
Demand for No. 2A and 3A Common Red Oak is steady to larger for sawmills than for smaller ones. There are steady order files for No. 2A and 3A Common White Oak. Some residential flooring manufacturers said they experienced better business. Supplies are thinner due to decent demand for similar quality material from industrial markets.
Prices offered by China are falling for Red Oak and this is also due to U.S.-Iran war-related difficulties shipping to the Middle East. Red Oak sales on domestic markets are reported as decent, depending on areas contacted, while for others it is slow.
Supplies of White Oak have shifted over the spring and summer from being abundant to more balanced lately. Wholesalers and residential flooring manufacturers are more cautious with their green purchases. On domestic markets, kiln-dried FAS prices are decent if customers can be found. With slower shipments to Chinese markets, other markets have helped pick up the slack for this species. Supplies of kiln-dried items are meeting market needs.
Poplar sales were slower but steady. Demand from overseas markets were sluggish from Asian furniture manufacturers.
Premium grades of Walnut have been selling well and continues to be in steady demand, remaining at steady prices for green and kiln-dried products.
With tariffs being imposed on both sides of the country, it will soon be evident these measures will influence forest and hardwood products.
Bank of Canada Governor Tiff Macklem said inflation risk is on the rise, with higher energy costs topping Canada’s incoming dollar-for-dollar tariffs on U.S. goods as the biggest potential driver of rising prices for consumers and businesses.
Macklem’s remarks in September came after Canada’s central bank held its benchmark interest rate steady at 2.25 percent. The central bank lowered its policy rate to its current level in October of last year. This latest announcement marks seven consecutive times it has left its trend-setting policy rate unchanged.
“The counter-tariffs, and indeed the U.S. tariffs … will add costs for some businesses,” Macklem said. “These tariffs are very steep, but they are applied to a relatively narrow base.”
The bigger issue, he said, is the war in the Middle East.
“The conflict has re-escalated. Oil prices are back up,” Macklem said. “The longer that drags on, the bigger the risk that it starts to spill over to the prices of other goods and services.”
In its decision, the bank said recent data confirms its prediction for a “broadening recovery” in the economy. However, policymakers also said the war and U.S. tariffs raise the risk of higher inflation. U.S. benchmark oil prices have soared about 13 percent since the bank’s last announcement in July. The U.S. led war in Iran has been intensifying at the time of this writing, resulting in slower tanker traffic through the Strait of Hormuz — a critical maritime passageway for oil to reach global markets.
