Butane Price Trend and Forecast

Regional Market Overview

Get the latest insights on price movement and trend analysis of Butane in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Butane Price Trend for the Second Half of 2023

Asia

Butane price trends were observed to be oscillating in the Asian markets throughout the second half of 2023. Butane is a very versatile chemical that can also be used as a fuel, so the downstream demands from the consuming industries primarily drive its price trends.

Butane Price Chart

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The prices started strong in the early months in the Asian region. The surge in crude oil prices in the third quarter pushed up the price graph initially. The market demands were also supportive of this price trajectory. However, as the fourth quarter hit, the prices started to slide in the Asian markets. A slump in petroleum prices and a supply overflow in the inventories were behind this downfall. Overall, varying price trend was witnessed.

Europe

The European market trend for butane was not much different from the Asian markets; the prices were found to be oscillating here as well. The market had a better output in the third quarter as a surge in the feedstock prices pushed up the upstream costs in the European market. Though the Russian war was still going on, however, the region developed ways and alternatives to economically work around that. So, the market had this newfound stability, which kept the fluctuations limited. The fourth quarter saw a slight dip in the price graph.

North America

The North American butane market also closely followed its Asian and European counterparts as the prices showed fluctuations of the same kind. The third quarter was largely stable, with the prices fluctuating within very confined limits and exuding borderline stagnancy in the third quarter, while the fourth quarter saw a slumping trend. Fuel and chemical industries drove the demand attributes. Overall, a varied trajectory was witnessed.

Analyst Insight

According to Procurement Resource, the Butane price trends are expected to remain on the lower side of the curve for the next few months since the inventories are well-supplied and the demands are still uncertain.

Butane Price Trend for the First Half of 2023

Asia

The price trend of butane was dependent on the supply and market dynamics of crude oil. In the first quarter of 2023, the Asia-Pacific market showed slow signs of recovery, and with increased rates of imports from Russia, the level of inventories rose. In the second quarter, the weak growth of the economy, cuts in demand from the downstream sectors, and overall bearish trading sentiments proved to be a problem for the growth of butane prices.

Europe

The globally weak position of the economy showed its effect on the European markets as the high rates of inflation, sanctions on trade with Russia, and weak demand pressurized the butane price trend in the first quarter of 2023.

These problems were persistent in the second quarter, too, and with the swindling conditions of the markets, the investors were also forced to sell their assets. The feeble situation of European currencies further worsened the situation of butane prices during the first and second quarters of 2023.

North America

High volatility in the North American market and shifting demand scenarios negatively impacted the price trend of butane in the first and second quarters of 2023. Along with this, the rise in unemployment and decline in production activities also proved to be a challenge for the butane market.

There were some instances during the first two quarters where the market showed some signs of improvement, but due to weak economic growth and a recession-like phase in the region, the price trend of butane slipped in the region.

Analyst Insight

According to Procurement Resource, the price trend of Butane is expected to face southwards in the upcoming quarter as the negative economic growth around the globe will likely impact the butane market adversely.

Procurement Resource provides latest prices of Butane. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.