MDF market in Iran

Earlier Report Observations

From 2018 to 2020, the MDF market volume in Iran showed volatile dynamics, reaching 2 546 thousand m³ in 2020 after a slight decline the previous year. Key factors were exchange rate fluctuations, which affected prices and import costs, and the entry of new players attracted by opportunities in the construction sector, supporting growth in domestic production. International sanctions and global supply chain disruptions began limiting access to raw materials and increasing production costs, creating a challenging operating environment.

A sharp rise in market volume to 2 991 thousand m³ in 2021 was directly linked to changes in government policy aimed at supporting domestic production and reducing import dependence, leading to a surge in output to 2 260 thousand m³. At the same time, shifting consumer preferences towards more durable and diverse products, such as laminated MDF, stimulated demand. In 2022, the market contracted to 2 796 thousand m³ due to electricity supply constraints that reduced production capacity, and rising logistics costs amid regional tensions. Also in this year, new packaging and labeling regulations were introduced, raising environmental standards.

In 2023, market volume fell to 2 305 thousand m³, largely driven by continuing sanctions pressure, which caused imports to collapse to 148 thousand m³. Despite this, domestic production grew to 2 300 thousand m³ thanks to investments in modern technologies and sustained demand for specialized products, such as melamine-coated MDF for furniture and cabinetry.

Production MDF in Iran

In kind, 2017-2020, K m³

From 2017 to 2020, Iran ranked as the 11th largest producer of MDF globally.

Top producers of MDF, 2017-2020

World map of production of MDF, 2017-2020

MDF production in Iran grew for the third consecutive year. In 2020, Iran produced 1 800 K m³ of MDF, marking a 5.9% increase compared to 2019. Over the 2017-2020 period, production rose by 58.5%, with a compound annual growth rate of 16.6%.

Annual dynamics of production in Iran in kind, 2017-2020, K m³

Exports MDF from Iran

Exports in kind, K m³

The market showed an unstable trend during this period. The minimum value was recorded in 2017, while the maximum occurred in 2019, with a 2.7-fold difference between these years. In 2020, Iran's cross-border shipments of MDF reached 58 K m³, representing a slight decrease of 1.0% from the previous year. The largest increase was recorded in 2018 at 82.9%.

Annual dynamics of product's exports from Iran in kind, 2017-2020, K m³

From 2017 to 2020, Afghanistan and Iraq clearly dominated Iran's export partner structure in kind, with other countries accounting for the remaining share.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Iran in kind, 2017-2020

Exports in value, M $ US

MDF exports from Iran declined for the second consecutive year. In 2020, exports amounted to 16.3 M $ US, reflecting a strong year-over-year decrease of 17.9%. Over the 2017-2020 period, exports increased by 4.4%, with a compound annual growth rate of 1.4%. The maximum value was recorded in 2018 at 21.2 M $ US, which also saw the largest increase of 35.9%.

Annual dynamics of product's exports from Iran in value, 2017-2020, M $ US

Throughout 2017-2020, Afghanistan and Iraq remained the primary buyers of MDF from Iran, together accounting for 93.1% of total exports in value terms, with other countries making up the remainder.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Iran in value, 2017-2020

Imports MDF to Iran

Imports in kind, K m³

After a two-year reduction, MDF deliveries to Iran increased. In 2020, imports reached 805 K m³, showing a modest uptick of 1.0% year-over-year. Over the 2017-2020 period, imports decreased by 33.8%, with a compound annual decline rate of 12.8%. The minimum value was recorded in 2019 at 797 K m³, while the largest decline occurred in 2018 at 28.1%.

Annual dynamics of product's imports to Iran in kind, 2017-2020, K m³

From 2017 to 2020, Thailand (50.5% of imports in kind), the United Arab Emirates (14.2% of imports in kind), and Turkey (12.5% of imports in kind) were the key sources for Iran's imports in kind, together representing 77.3% of total flows.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Iran in kind, 2017-2020

Imports in value, M $ US

After a two-year decrease, MDF deliveries to Iran increased. In 2020, imports stood at 171.8 M $ US, reflecting a moderate increase of 4.1% compared to 2019. Between 2017 and 2020, imports decreased by 41%, equating to an annualized decline rate of 16.1%. The minimum value was recorded in 2019 at 165.1 M $ US, while the largest decline occurred in 2018 at 37.4%.

Annual dynamics of product's imports to Iran in value, 2017-2020, M $ US

Over 2017-2020, Thailand (48.2% of imports in value terms), the United Arab Emirates (14.1% of imports in value terms), and Turkey (14.1% of imports in value terms) were the main suppliers of MDF to Iran, together comprising 76.3% of total imports in value terms.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Iran in value, 2017-2020