Butane price in Europe hits 30-year high — OilPrice
In Northwest Europe, the November price of butane rose to $1,125 per tonne at the beginning of the month — the highest level in 30 years. In Asia, the AFEI index stood at $1,180 per tonne on November 3, while butane quotations at the U.S. hub of Belvieu climbed to a 14-year high of $920 per tonne, OilPrice reports.
U.S. supplies shifted toward Asia
OilPrice attributes the price increase to changes in global liquefied petroleum gas (LPG) flows after the war between the United States and Iran began in March. Before that, the United States accounted for approximately 45–50% of global LPG exports, while Middle Eastern countries accounted for 30–35%. After the crisis began, the share of Persian Gulf countries fell to 11%, according to the publication, while the U.S. share rose to 65%.
From April to October, the United States supplied up to 75% of the propane and butane imported by Asia. In October, this figure fell to approximately 55% amid the gradual recovery of supplies from the UAE, Kuwait, Qatar and Saudi Arabia. At the same time, butane imports to the Amsterdam–Rotterdam–Antwerp hub in October declined to a multi-year low of 130,000 tonnes, 34% less than a year earlier.
Demand from India and China
Supplies from the United States do not fully replace Middle Eastern volumes, as U.S. LPG exports consist of approximately 75% propane and 25% butane. In India and other Asian countries, household gas more often requires a propane-butane mixture close to a 50-to-50 ratio. At the beginning of the crisis, 87% of India’s LPG imports came from the Persian Gulf, while the country’s imports fell from 2.03 million tonnes in February to 1.17 million tonnes in March.
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Additional demand is being generated by China, where five methyl tert-butyl ether production plants with a total capacity of 3.4 million tonnes per year were launched in 2025. This additive increases gasoline’s octane rating, and butane is used in its production.
Winter demand limits shipments
In the United States and Europe, seasonal demand for butane for blending winter-grade gasoline rises in autumn. U.S. exports fell from a record 2.4 million tonnes in May to 1.55 million tonnes in October. Asia accounted for 840,000 tonnes, or 54% of October shipments, while Europe accounted for 105,000 tonnes, approximately 7%.
According to OilPrice’s calculations, U.S. butane priced at $920 per tonne, including approximately $320 in freight costs to India, would cost around $1,240 per tonne after delivery. At this price level, supplies to Asia became commercially less attractive for U.S. producers.
