At present, the timber market – specifically the boards and panels segment – is seeing a significant price rise, or bubble, which will sooner or later burst. This was acknowledged by Kristaps Klauss, Executive Director of the Federation of the Latvian Timber Industry (LKF), on the Latvian Radio programme "Krustpunktā".

He explained that 90-95% of the industry's processed output, excluding firewood, is exported, meaning that product prices are largely determined by developments in foreign markets. In Europe, prices for sawn timber, or boards, have doubled over the year, while in the USA they have even tripled. In contrast, the price increase for wooden furniture is "unusually high" – 5-8%. This means that while raw material prices have risen sharply, the increase in the price of the final product is relatively small.