Butane Prices Rise Across Key Markets in Q2 2025 on Strong Petrochemical Demand

28-Aug-2025

The global butane industry witnessed notable pricing shifts, shaped by evolving supply-demand dynamics, refinery operations, and international trade flows. According to IMARC Group’s latest publication, Butane Price Trend, Index and Forecast Data Report 2025 Edition,” which provides updated insights for Q2 2025, regional trends highlighted fluctuations across key markets, including North America, Asia Pacific, and Europe. Factors such as refinery maintenance, geopolitical disruptions, currency movements, and domestic consumption patterns played a significant role in shaping butane price trajectories across these regions.

Q2 2025 Butane Prices:

USA: USD 640/MT
India: USD 708/MT
UK: USD 670/MT
China: USD 780/MT
Saudi Arabia: USD 618/MT

Q2 2025 Butane Prices

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The latest price data underscores butane’s critical role in high-performance industries such as petrochemicals, refining, and LPG blending, where sustained demand, coupled with supply-side constraints, continues to support a stable to rising global price trend.

Key Regional Price Trends and Market Drivers:

USA

Butane prices in the USA averaged USD 640/MT in June 2025, influenced by natural gas liquids production fluctuations and seasonal demand for gasoline blending. Refinery maintenance in the Gulf Coast and steady export demand added further pressure on inventories.

India

India's butane prices stood at USD 708/MT in Q2 2025, shaped by tighter Middle Eastern supplies and higher import costs due to Red Sea shipping disruptions. Currency depreciation and steady demand from LPG blending and petrochemical sectors also contributed to market dynamics.

In the UK, butane prices stood at USD 670/MT during the second quarter of 2025. North Sea production schedules and petrochemical sector substitution demand impact the market. Weather-driven residential LPG use and changes in wholesale gas prices further influenced local price adjustments.

China

The China butane prices recorded USD 780/MT in June 2025, with pricing supported by strong demand from steam crackers and dehydrogenation units. Import volumes from Middle Eastern suppliers, coupled with domestic logistics bottlenecks, shaped supply costs and regional distribution trends.

Saudi Arabia

Butane prices in Saudi Arabia reached USD 618/MT in Q2 2025, driven by production strategies of state-owned companies and maintenance at gas processing facilities. Export demand across Asia and Africa, alongside transportation and port efficiency, determined the pricing outlook.

Butane Industry Overview:

The global butane market reached a value of USD 116.80 Billion in 2024 and is projected to grow to USD 170.60 Billion by 2033, expanding at a CAGR of 4.10% during 2025-2033. This growth reflects the material’s integral role across energy, petrochemical, and industrial sectors, supported by steady demand in both developed and emerging economies. Market expansion is further underpinned by rising consumption in LPG blending, gasoline additives, and feedstock for petrochemical production.

Some of the key market drivers include seasonal demand variations, refinery and processing capacity utilization, and supply strategies of major exporting nations. Additionally, increasing industrial applications, the expansion of petrochemical infrastructure, and rising LPG consumption in residential and commercial sectors are expected to drive sustained market growth over the forecast period.

Recent Market Trends and Industry Analysis:

The butane market is witnessing robust growth, supported by its diverse applications across energy, automotive, petrochemical, and consumer industries. Rising utilization of liquefied petroleum gas (LPG) for residential and commercial heating and cooking remains a key driver, complemented by the global shift towards cleaner and more efficient energy sources. Expanding use of butane in petrochemical feedstocks, automotive fuel blends, and as a refrigerant in eco-friendly refrigeration systems further highlights its critical role in high-performance industries.

Additional growth is fueled by increasing demand in aerosols, portable energy solutions, and construction-related applications. Rapid urbanization, infrastructure development, and advancements in extraction technologies are also supporting market expansion. Moreover, stringent environmental regulations promoting low-carbon alternatives continue to reinforce the adoption of butane worldwide.

Strategic Forecasting and Analysis:

IMARC’s report incorporates forecasting models that project near-term price movements based on evolving trade policies, raw material supply, and technological trends. These tools enable businesses to mitigate risk, enhance sourcing strategies, and support long-term planning.

Key Features of the Report:

Price Charts and Historical Data
FOB and CIF Spot Pricing
Regional Demand-Supply Assessments
Port-Level Price Analysis
Sector-Specific Demand and Supply Insights

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