If you already produce or export MDF to Iran, or are looking at this market, the signals that emerged in early July 2026 are very interesting. They show real company names, actual order values, and people ready to discuss deals. But before you get excited about the numbers, I want you to read the problematic part first, because it's far more important than the sales figures.

Before quoting export prices during periods of volatile MDF exports to Iran, businesses should thoroughly check shipping costs, alternative routes, and final destination charges. Guidelines for cost estimation can be found at [link/reference]. Check international shipping costs. Then compare it to the importer's payment terms.

A clearer-than-usual buy signal from Iran.

OJA WOOD MOEIN, a company based in Isfahan, is a major importer and distributor of MDF boards in Iran, with over 40 years of experience. Currently, they import MDF from seven Thai manufacturers through their Dubai branch, with an average annual value of US$20-25 million, and this is expected to increase to US$23 million in the future. This isn't a "cold lead," but rather a partnership with existing, established customers.

Another company, Pars Rubber Products, a rubber parts manufacturer with over 70 years of experience, is interested in importing STR20 rubber blocks from Thailand. They anticipate an order value of approximately US$120 million, a very large figure for a single market. Currently, the company imports around 70,000 tons of rubber blocks annually from Malaysia, Indonesia, and Vietnam, and has previously purchased limited quantities from Thailand.

What sets this signal apart from typical news is that it includes a real company name, real figures, and direct discussions with the Thai Trade Promotion Office in Tehran. This means that if the regional situation allows for normal transportation, negotiations can proceed immediately without starting from scratch.

The real problem that's keeping the deal stalled.

Both companies agreed on the same point: the Strait of Hormuz, during periods of unrest in the Middle East, disrupts maritime transport through the strait, and alternative routes through Pakistan and Turkey are significantly more costly, making Thai products uncompetitive against regional competitors.

For Pars Rubber Products, the problem is even more apparent. Although Thailand's STR20 rubber blocks are of high quality, their price is already higher than competitors like Malaysia, Indonesia, and Vietnam. Adding in the increased transportation costs due to detours widens the price gap even further. Currently, the company is relying on its limited remaining stock and waiting for the situation to improve before resuming negotiations.

Here's what you need to understand before submitting any quote to an Iranian buyer: The landed cost at the buyer's location doesn't depend solely on your FOB price, but also on which shipping routes are available and the current freight rates.

Exporting MDF wood to Iran: Things to check before responding to a quote.

If you are a manufacturer or exporter of MDF boards and considering the Iranian market, there are several things to check before sending a price list to buyers. If you quote prices without knowing the actual shipping costs, you might secure an order but end up losing money during the actual delivery process.

• Check the status of the Strait of Hormuz. Check whether the regular shipping route is open before calculating the freight charge.
• Request freight rates from the shipping line. For the Persian Gulf route, and in comparison to the longer route through Türkiye or Pakistan.
• Calculate the actual landed cost. Includes freight charges, insurance, port fees at destination, and Iranian import taxes.
• Check the payment terms. Because Iran has limitations in its international banking system, a letter of credit (LC) from an Iranian bank may not be accepted in Thailand.
• Confirm the product standards that the buyer requires. For example, the thickness, density, and formaldehyde emission standards set by Iran.
• Check the status of sanctions. This relates to trading with Iran, especially if you use banks or shipping lines that operate under US or EU law.
• Ask the buyer if they are using routing through Dubai. Because OJA WOOD MOEIN uses a subsidiary in Dubai as an intermediary, the delivery terms may change.

Transportation costs vary depending on the route.

Typically, shipping MDF from Thailand to Iran takes the sea route through the Strait of Malacca, across the Indian Ocean, and into the Persian Gulf via the Strait of Hormuz. The estimated transit time is 18–25 days, depending on the shipping line and destination port. Normal freight rates for a 40-foot container are around US$1,500–2,500, but this figure can vary significantly during periods of uncertainty.

If you have to detour through Turkey using land or multimodal routes, costs can increase by 2–3 times, and transit times extend to 35–50 days. This directly impacts your working capital because goods are stuck in transit for longer, even though you've already paid for production and raw materials.

For routes through Pakistan, there is added complexity in documentation and border crossing procedures, as it requires both maritime and land transport documents, as well as transit through Pakistani customs, which increases the risk of unpredictable delays and costs.

The STR20 rubber block presents a price challenge that must be acknowledged.

For exporters of STR20 rubber blocks, the challenges are more complex than with MDF because, in addition to transportation routes, there's the issue of price competition from Malaysia, Indonesia, and Vietnam. Pars Rubber Products stated that they have previously purchased Thai rubber in limited quantities and know of its good quality, but the price is higher than competitors in the region.

If you are an exporter of rubber sheets, the first thing to consider before entering this market is your price competitiveness. And if you can't compete on price, can you truly position yourself as a premium supplier? This is because Iranian buyers are well-aware of market prices and have many options.

The $120 million figure projected by Pars Rubber is very large, but that figure represents the company's total demand for rubber from all sources, not the total amount to be purchased from Thailand. Therefore, assessing Thailand's actual market share requires considering both price competitiveness and transportation costs combined.

Documents and procedures required for the Iranian market.

Exporting to Iran is more complex in terms of documentation than to typical markets, due to both Iranian specific requirements and restrictions from the international financial system. You should have the following documents ready before beginning negotiations.

• Certificate of Origin (Form A or GSTP) Thailand and Iran have a cooperation framework under the GSTP, which may grant some tariff reductions. You should check with the Department of International Trade to see if your goods are on the list.
• Phytosanitary Certificate For MDF containing natural wood components, Iran may require phytosanitary certification.
• Formaldehyde Emission Test Report For MDF boards, test results from an accredited laboratory are required, as Iran has specific standards in this area.
• Packing List and Commercial Invoice The product specifications are complete, including the correct HS Code.
• Bill of Lading or Multimodal Transport Document It depends on the actual route taken.
• Company certification documents Because OJA Wood Moein recommended that the Thai Trade Center help verify the credibility of Thai businesses, it means that Iranian buyers place importance on checking the background of suppliers.

Regarding payment matters, we need to discuss it with the bank first.

This is a part many overlook and later regret: Iran has been cut off from the SWIFT system. This means that regular Letters of Credit (LCs) issued by Iranian banks cannot be directly confirmed through Thai banks. Therefore, most payments must go through intermediaries in third countries such as Dubai, Turkey, or China.

OJA WOOD MOEIN already uses a branch in Dubai as an intermediary, which practically simplifies payments. However, you need to check with your bank about any restrictions or compliance procedures for accepting payments from a Dubai-based company representing Iranian buyers, as each bank has different policies.

If you have never exported to Iran before, it is recommended to discuss this with your freight forwarder and bank before accepting any quotes, as payment arrangements in this market are complex and require advance planning.

The competition includes participants from Malaysia, Indonesia, and Vietnam.

Both companies in Isfahan already import goods from their Thai competitors. OJA WOOD MOEIN imports MDF from Russia, China, and Indonesia, while Pars Rubber Products imports rubber blocks from Malaysia, Indonesia, and Vietnam. This means that buyers have options and are well-aware of market prices.

For MDF, Thailand has an advantage in terms of quality and established relationships, as OJA WOOD MOEIN already purchases from seven Thai manufacturers. However, if transportation costs increase due to detours, this advantage may diminish. Therefore, maintaining relationships with buyers during market disruptions is more important than waiting for things to return to normal before reconnecting.

For STR20 rubber, the price gap between Thailand and its competitors is a pre-existing problem, not something new stemming from the situation in the Middle East. Therefore, even if the situation improves, the price issue will persist. You need a clear strategy on how to compete.

Signals to watch for before deciding to move forward.

The Iranian market is currently in a “wait and see” state. Both sides have stated they are ready to resume negotiations when the situation improves, but what does “improvement” mean, and how will you know when that time is?

The following should be monitored: First, the status of shipping through the Strait of Hormuz, which can be tracked via Marine Traffic or Lloyd's List news. Second, freight rates on the Persian Gulf route; if rates return to near-normal levels, it signals that the route is open. Third, news from the Thai Trade Center in Tehran regarding potential new business matching events when circumstances permit.

If you are an MDF manufacturer that has never exported to Iran before, preparing now during this market downturn is ideal. This allows you time to prepare documentation, study standards, and research shipping routes without rushing into decisions.

The hidden costs of the initial export to Iran.

In addition to fluctuating freight rates, there are other costs you must include in your landed cost calculation. Because if you quote an FOB price and the buyer's landed cost is higher than your competitor's, the deal is closed.

• Cargo insurance costs For routes passing through high-risk areas, insurance premiums may be 2–5 times higher than normal.
• Port handling fees at the destination port. Port fees in the Persian Gulf vary. It's advisable to check with an experienced freight forwarder specializing in this route.
• Demurrage value If there are problems with the documentation or the customs inspection at the destination takes a long time, the demurrage fee can accumulate very quickly.
• Document translation fees Iran uses the Farsi language, so some documents may need to be translated and certified.
• LC Confirmation value If using an LC through an intermediary bank, the confirmation fee may be higher than a regular LC.
• Working Capital Costs Longer shipping periods mean your funds are locked in for longer, which includes interest costs to account for.

In summary, exporting MDF wood to Iran still presents a real opportunity with buyers, but a pricing decision must take into account transportation costs, documentation, and payment risks in full, not just the seemingly large order size.

How to think before deciding whether to move forward or wait.

I'm not saying the Iranian market is unattractive, because the buy signals are very clear and there are experienced and financially capable buyers. But I want you to make your decision based on factual information, not just on seemingly large figures.

There are three questions you should ask yourself: First, if you have to use a longer route and pay 50–1001 TP3T more in freight costs, can you still make a profit? Second, do you have a payment system that can support trading with Iran through an intermediary? Third, if the situation drags on for another 6–12 months, are you willing to accept that risk?

If your answer is "yes" to all three, then preparing now makes sense. But if you're unsure about any of them, you should gather more information before investing time and resources in negotiations.

Steps to take if you're ready to get started.

If you decide to proceed with the Iranian market, there are a few steps you should take. Start by contacting the Thai Trade Center in Tehran for more information about OJA WOOD MOEIN or Pars Rubber Products, as they have direct discussions with both companies and may be able to help arrange a meeting.

Next, find a freight forwarder with direct experience on the Persian Gulf route, not just a general forwarder, as this route is complex and requires specialized expertise. You can find more information about shipping route planning at [link/website]. SME Shipping This compiles logistics information for Thai SMEs.

Next, prepare your company documents for inspection, as Iranian buyers place great importance on supplier reliability. Finally, discuss payment terms with your bank regarding receiving payments from Iran through an intermediary before submitting any price offers.

Things to watch out for in the next 3–6 months.

The Iranian market is currently showing a yellow light—neither red nor green. You shouldn't ignore it, but you also shouldn't rush in without preparation. Here's what to watch out for over the next 3-6 months:

One, developments in the Middle East situation and its impact on shipping through the Strait of Hormuz. Two, freight rates on the Persian Gulf route, which better reflect the actual situation than political news. Three, the movements of regional competitors, especially Malaysia and Indonesia, who may accelerate their entry into the market when the situation opens up. And four, news from the Thai Trade Center in Tehran regarding a new round of business matching.

If you follow these signals, you'll know when it's the right time to move forward, without waiting for others to tell you.

Exporting MDF wood to Iran: Double-check before negotiating prices and before closing the container.

Before quoting a price to a buyer in Iran, you should clearly separate the cost of the goods, packing costs, shipping costs, insurance, documentation fees, and destination charges. If you combine everything into a single lump sum, you won't know where your profit goes when shipping costs change.

For MDF boards and natural rubber (STR20), the first step before submitting a price quote is to obtain complete destination information from the buyer. This includes the preferred port, Incoterms terms, desired delivery date, payment method, and customs documentation. This information helps you assess the risk before accepting the order.

If a buyer requests a price quote, you should check it carefully. Avoid giving a broad, approximate price; instead, provide a price range, specify the quotation's expiration date, and mention that freight surcharges or other additional costs may vary depending on the shipping booking date. This helps prevent disputes when the goods are ready for shipment.

Documentation issues should be checked from the beginning, not waiting until production is complete to inquire. Some documents require time to obtain from relevant agencies or labs. Missing documents on delivery day can result in costs beyond just penalties, including delays and decreased buyer trust.

The key areas to discuss with freight forwarders are monitoring route risk and landed-cost competitiveness. The article suggests sea access via Hormuz is vulnerable, while alternate routes through Pakistan or Turkey are costly. Thai SMEs should evaluate freight, transit time, and payment risk before quoting. Inquire about transit times for standard routes, alternative routes in case of risk, costs not included in the freight quote, and insurance terms and conditions in case of damage or delays.

Another point to be aware of is the high geopolitical and routing risk. The article also notes price competition from Malaysia, Indonesia, and Vietnam. No customs or sanctions details are provided, so compliance status is unknown. This information may not be visible in the initial quotation but will emerge when the buyer reviews documents or when customs at the destination request additional information. Preparing this information in advance can help speed up the deal.

• Separate the cost of goods, shipping, insurance, and documentation onto different lines before submitting a price quote.
• Clearly confirm the Incoterms with the buyer, specifying who is responsible for the final delivery costs.
• Verify that the HS Code and product name in the invoice match the packing list and shipping documents.
• Please provide a freight quote that includes all applicable surcharges, not just the base freight price.
• Specify the expiration date of the quotation to mitigate the risk of fluctuating freight rates.
• Keep product certification documents and product photos ready to respond to buyers immediately.
• Start with a sample shipment if you haven't shipped to this market before, to reduce risk before placing a large order.

If you use this checklist before starting pricing discussions, your first export transaction won't be guesswork, but rather a decision based on actual costs, real documentation, and real risks. This will help you negotiate with the buyer with more confidence.

Source: Department of International Trade Promotion (DITP)