U.S. benchmark and international crude benchmarks both fell as investors took profits following prior gains on the announcement of sweeping new U.S. sanctions targeting Iran. The 'Operation Economic Outcast' campaign imposes global sanctions with no exemption for China, creating uncertainty around Iranian oil flows. Prices remain volatile as markets assess whether the sanctions will successfully isolate Iran's energy sector or be circumvented.
Crude oil futures firmed amid firm spot demand, with both major global benchmarks edging higher in trade. Increased positioning by market participants reflected continued underlying demand support.
| Product | Region | Incoterm Basis | Price | Last Updated Month |
|---|---|---|---|---|
| Butane | China | FOB | USD 926.18/MT | July 2026 |
| Butane | India | CIF | USD 1,033.18/MT | July 2026 |
| Butane | USA | CIF | USD 1,113.18/MT | July 2026 |
| Butane | Germany | CIF | USD 1,060.18/MT | July 2026 |
| Butane | Canada | CIF | USD 1,123.18/MT | July 2026 |
| 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
The average butane prices were close to USD 913/MT in China and approximately USD 1,001/MT in India during June’26. Asian butane markets strengthened sharply during April and May as disruptions to Middle Eastern LPG flows through the Strait of Hormuz forced importers to seek replacement cargoes from alternative suppliers. India emerged as an aggressive buyer, while China and Southeast Asia also competed for available shipments. Freight costs added substantial pressure to delivered values, with Houston-to-Japan LPG freight reaching around USD 300, making U.S. replacement cargoes considerably more expensive. The market softened in June as better cargo availability reduced buyer urgency and removed much of the geopolitical premium accumulated earlier in the quarter.
Europe
During the last month of Q2’26, the average butane price in Germany was nearly USD 1,034/MT. European conditions were relatively firm at the beginning of Q2 as restricted Middle Eastern supply increased competition with Asian importers for Atlantic Basin and U.S. cargoes. Refiners and traders faced higher freight and replacement costs, which supported regional values through April. Conditions became more balanced during May and June as Europe remained comparatively well supplied and seasonal gasoline-blending demand started to decline. Improved cargo availability and weaker blending requirements reduced procurement pressure, although Asian demand continued diverting some large cargoes away from Europe and prevented a sharper correction.
North America
In the USA, monthly average Butane prices settled at around USD 1,068/MT in June. The prices were similar in the Canadian markets. North American butane strengthened during April and early May as overseas buyers turned increasingly toward U.S. supply. EIA data showed U.S. normal-butane exports reaching 815,000 barrels per day in April, supported by strong Asian demand. As global supply concerns eased in June, export urgency moderated and the market became more balanced.
Analyst Insight
According to Procurement Resource, butane prices are expected to remain stable to slightly soft as Middle Eastern supply normalizes, while export demand and freight conditions continue to provide underlying support.
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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.
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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