Indian OMCs reduced commercial LPG prices by ₹183.50 in July, while keeping domestic rates unchanged. Renewed US-Iran conflict drove Brent crude up 2.5% to $76/barrel, threatening upward feedstock pressure, though LPG consumption fell 14% year-on-year.
Evonik is expanding downstream processing at its Fermas site in Slovakia for biosurfactants and pharmaceutical ingredients, adding commercial output. The capacity increase raises available supply of these specialty chemicals, likely putting downward pressure on prices.
| Product | Region | Incoterm Basis | Price | Last Updated Month |
|---|---|---|---|---|
| Butane | China | FOB | USD 912.51/MT | June 2026 |
| Butane | India | CIF | USD 1,000.51/MT | June 2026 |
| Butane | USA | CIF | USD 1,067.51/MT | June 2026 |
| Butane | Germany | CIF | USD 1,033.51/MT | June 2026 |
| Butane | Canada | CIF | USD 1,067.51/MT | June 2026 |
Stay updated with the latest Butane prices, historical data, and tailored regional analysis
Asia
In Asia, butane prices increased significantly during Q1’26 as the Iran war disrupted tanker movements through the Strait of Hormuz, through which nearly 60% of India’s LPG imports normally pass. In India, upstream crude oil values increased by approximately 23.35% from February to March and nearly 13.87% quarter-on-quarter, sharply increasing import and freight costs for LPG cargoes. Indian refiners, including IOC, HPCL, and BPCL, adjusted procurement strategies, sought alternative cargoes, and rescheduled maintenance operations to manage tightening supply conditions. Demand from residential LPG consumption, petrochemical cracking units, and blending applications remained firm, while logistical disruptions and elevated insurance premiums reduced regional cargo availability and supported stronger market sentiment throughout the quarter.
Europe
European butane markets also strengthened during Q1’26 due to tightening import availability and rising logistics costs. Higher upstream crude oil prices and disrupted Gulf exports increased procurement expenses for European buyers, while LNG rerouting and limited tanker availability further pressured regional energy logistics. Demand from heating fuels, refinery operations, and petrochemical sectors remained relatively stable, although broader industrial activity stayed cautious due to inflationary pressure and slower economic growth. Buyers increasingly focused on long-term supply contracts and diversification away from Gulf-origin cargoes, which further supported regional pricing conditions.
North America
In North America, butane prices followed a firm upward trajectory during the quarter as upstream crude oil prices rose nearly 16.7%. Elevated geopolitical risks increased freight and insurance premiums for Gulf-linked imports, while supply concerns supported stronger LPG market fundamentals. Strategic petroleum stockpiles and rising domestic inventories helped stabilize regional supply conditions, with U.S. crude inventories increasing by around 3.5 million barrels during the quarter.
Analyst Insight
According to Procurement Resource, butane prices are expected to remain elevated as geopolitical tensions and shipping disruptions continue tightening global LPG trade flows, while stable downstream fuel and petrochemical demand is likely to support market fundamentals.
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Asia
The Asian butane market during the fourth quarter exhibited mixed price movements characterized by volatility and shifting fundamentals. The quarter opened with prices experiencing decline as upstream crude oil costs weakened amid mounting global oversupply concerns. Following this initial weakness, prices entered a period of range-bound trading and modest stabilization as market participants assessed evolving supply-demand dynamics. Brief recovery attempts materialized as refinery maintenance activities provided temporary support. However, persistent surplus expectations and weaker economic indicators from China, including slower petrochemical activity and reduced LPG blending requirements, prevented sustained upward momentum. The latter portion of the quarter saw renewed downward pressure as trade tensions added uncertainty, while ample availability from regional refineries kept supply conditions comfortable. Prices fluctuated within established ranges, reflecting competing influences of feedstock movements and sporadic demand signals from petrochemical and fuel blending sectors.
Europe
In the European region, butane pricing demonstrated wavering patterns throughout the fourth quarter. Upstream crude oil dynamics indicated supply growth outpacing demand estimates, creating persistent downward pressure on derivative products. Regional refinery output remained steady, intensifying oversupply concerns. The market witnessed brief recovery attempts sparked by optimism surrounding potential improvement in heating fuel demand and petrochemical sector activity, though these rebounds proved short-lived as fundamental imbalances reasserted control. The latter portion of the quarter saw prices fluctuating within established ranges as traders balanced accumulating inventory forecasts against sporadic demand signals from residential heating, aerosol manufacturing, and petrochemical sectors. Overall consumption patterns showed limited growth momentum amid economic uncertainties and mild weather conditions reducing heating fuel requirements.
North America
North American butane markets experienced a relatively stable price trajectory during the quarter. Prices declined slightly through the early period, reflecting broader crude oil market weakness, before establishing a more stable trading range. Domestic production from natural gas processing plants and refinery operations maintained steady output. Demand patterns across petrochemical feedstock applications, gasoline blending, and residential propane mixing provided offsetting support. Price differentials between regional hubs reflected transportation infrastructure considerations and localized supply-demand balances, with markets demonstrating greater stability compared to earlier quarterly volatility.
Butane is a hydrocarbon which is a highly combustible and odorless gas. It is widely used as a fuel in stoves, lighters, and torches. In the aerosol industry, it serves as a propellant and in chemical industries it acts as a feedstock material. Butane is also an essential ingredient in the production of synthetic rubber and also as a solvent and refrigerant in various industries.
C4H10
Fuel, Refrigeration, Welding, Chemical Testing, Gasoline blending, Solvent
Merck KGaA, Exxon Mobil Corporation, Chevron Phillips Chemical Company LLC, BP plc, Shell plc
CurrencyUS$ (Data can also be provided in local currency)
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