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Butanol Price Trend Analysis 2026: Price Drivers, Market Insights, Latest News, Supply Demand Analysis & Historical Prices
Written ByUdeesha Tomar
Butanol Latest Development
Paint price cuts deferred until after Diwali
Crude oil fell 15.5% in June, lowering raw material costs for paint makers. ICICI Securities expects companies to keep prices unchanged through the festive season to maximize margins, with reductions likely only after Diwali. Savings may fund dealer incentives.
Butanol Price Trend Q4 2025
| Product | Category | Region | Price | Time Period |
| Butanol | Chemicals | India | 885 USD/MT | October 2025 |
| Butanol | Chemicals | India | 775 USD/MT | December 2025 |
Stay updated with the latest Butanol prices, historical data, and tailored regional analysis
Asia
During Q4 2025, the butanol market in Asia witnessed a downward trend before stabilizing toward the end of the quarter. In China, prices declined steadily as supply remained ample and downstream demand weakened. After the holiday-related slowdown in October, shipments resumed but buying interest stayed cautious. Producers lowered offers to ease inventory pressure, while downstream users limited purchases to essential volumes, keeping negotiations at softer levels. As the quarter progressed, the pace of decline moderated and the market gradually entered a consolidation phase amid improving supply-demand alignment.
In India, the Butanol price chart displayed a consistent fall from elevated levels at the beginning of the quarter. The prices were about 885 USD/MT (Spot) in October and around 775 USD/MT in December. The decline was gradual rather than abrupt, suggesting sustained selling pressure over several weeks. Toward the latter part of the quarter, prices stabilized within a narrow band and showed a slight upward adjustment, reflecting improved market balance and firmer sentiment. The overall movement in India closely tracked regional trends, characterized by early weakness followed by steady consolidation.
Europe
In Q4 2025, butanol prices in Europe followed a trajectory comparable to China. The quarter opened with downward movement as sufficient supply and moderate demand weighed on pricing levels. Market activity remained cautious, with buyers focusing on short-term needs rather than forward commitments. As the quarter progressed, the pace of decline slowed and prices entered a period of stabilization at lower levels. Trading volumes appeared measured, and negotiations reflected balanced conditions rather than renewed weakness. By the end of the quarter, the market had largely transitioned from decline to sideways movement, indicating consolidation after earlier corrections.
North America
North America exhibited a similar price pattern during Q4 2025. Prices declined steadily in the early part of the quarter, reflecting comfortable supply conditions and restrained downstream consumption. Procurement was largely need-based, limiting upward momentum. As the quarter advanced, the downward pressure diminished and prices moved within a tighter range. The latter phase of the quarter showed stabilization, aligning with global trends and indicating that the earlier corrective phase had run its course.
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| Product | Category | Region | Price | Time Period |
| Butanol | Chemicals | India | 902 USD/MT | July 2025 |
| Butanol | Chemicals | India | 930 USD/MT | September 2025 |
Stay updated with the latest Butanol prices, historical data, and tailored regional analysis
Asia
The Chinese butanol market moved through alternating phases of decline and recovery during the quarter. Early weakness was visible due to steady output from key producers and muted downstream purchasing in coatings, plasticizers, and solvents. High inventory levels and limited new demand led suppliers to reduce offers, pulling prices downward. Midway through the period, the market gained mild support from reduced plant operating rates and a short-lived tightening in regional supply. However, the uptrend was limited as most downstream users purchased only for immediate requirements. In the last weeks, sentiment softened again, with sellers prioritizing inventory clearance and competitive pricing.
In Q3’25, the butanol price graph witnessed a fluctuating trend with an upward bias in the Indian market. Butanol prices trended upward early in the quarter, supported by higher import costs and consistent offtake from the coatings and adhesive manufacturing sectors. The prices were about 902 USD/MT (Spot) in July and around 930 USD/MT in September. Domestic suppliers adjusted offers marginally to match rising freight and feedstock expenses, while demand from paint and resin industries remained stable. As the quarter progressed, sentiment flattened with limited buying interest, as most consumers had already built inventories ahead of the festive season. Toward the end of the quarter, prices stabilized at moderate levels, aligning with steady supply and restrained downstream activity.
Europe
In Europe, butanol prices mirrored the mixed performance seen in China, characterized by fluctuating trends within a narrow range. Early in the quarter, weak fundamentals and cautious purchasing behaviour in the construction and coatings industries weighed on sentiment. The mid-period saw brief support from maintenance shutdowns and firmer naphtha values, but these gains proved short-lived as demand from end-use industries remained inconsistent. Supply levels were sufficient across the region, and trading activity stayed moderate, with limited speculative participation. By the close of the quarter, prices settled slightly below mid-period levels, indicating an oscillating pattern shaped by short-term cost adjustments and shifting buyer sentiment.
North America
The North American butanol market displayed similar oscillating behaviour throughout the quarter. Early trading reflected stable demand from paint, automotive, and adhesive industries, but rising inventories and slower construction activity led to sporadic price adjustments. Temporary supply disruptions at some plants provided momentary price stability, though the overall direction remained sideways. Midway through the quarter, limited feedstock volatility and steady import parity kept price movements contained. As the period ended, ample supply and restrained downstream consumption exerted mild downward influence.
About Butanol
Butanol is a popular fuel for internal combustion engines. Butanol is a C4-hydrocarbon that may be used as a drop-in fuel in cars that were meant to run on gasoline. Butanol comes in four isomers, however the most active commercialization activity is on isobutanol for gasoline mixing. Biobutanol may be mixed readily with gasoline at quantities of up to 11.5 percent by volume.
Butanol Product Detail
Chemical Formula
C4H10O
Molecular Weight
74.12g/mol
Industrial Uses
Butyl Acrylate, Butyl Acetate, Glycol Ethers, Direct Solvent, Plasticizers
Synonyms
1-butanol, Butan-1-ol, n-butanol, Butyl alcohol
Supplier Database
BASF (Germany), The DOW Chemical Company (US), Eastman (US), OQ Chemicals (Germany), SASOL (South Africa), BASF PETRONAS (Malaysia), PetroChina (China), Mitsubishi Chemical Company (Japan), SINOPEC (China), KH Neochem (Japan)
Regional Coverage
Asia Pacific
China, India, Indonesia, Pakistan, Bangladesh, Japan, Philippines, Vietnam, Iran, Thailand, South Korea, Iraq, Saudi Arabia, Malaysia, Nepal, Taiwan, Sri Lanka, UAE, Israel, Hongkong, Singapore, Oman, Kuwait, Qatar, Australia, and New Zealand
Europe
Germany, France, United Kingdom, Italy,Spain, Russia, Turkey, Netherlands, Poland, Sweden, Belgium, Austria, Ireland Switzerland, Norway, Denmark, Romania, Finland, Czech Republic, Portugal and Greece
North America
United States and Canada
Latin America
Brazil, Mexico, Argentina, Columbia, Chile, Ecuador, and Peru
Africa
South Africa, Nigeria, Egypt, Algeria, Morocco
CurrencyUS$ (Data can also be provided in local currency)
Supplier Database AvailabilityYes
Customization ScopeThe report can be customized as per the requirements of the customer
Post-Sale Analyst Support360-degree analyst support after report delivery
Note: Our supplier search experts can assist your procurement teams in compiling and validating a list of suppliers indicating they have products, services, and capabilities that meet your company's needs.
Butanol Production Processes
- Production of Butanol from Ethanol
Biobutanol is often produced in ethanol producing plants. The earliest biobutanol facilities were really converted corn ethanol units.
Frequently Asked Questions
The butanol outlook remains tied to supply-demand alignment across Asia, Europe, and North America, since the market has recently gone through a period of oversupply relative to downstream buying. Propylene feedstock costs, converted via oxo-synthesis into butanol, are the key cost lever, while downstream demand from paints and coatings, pharmaceuticals, cosmetics, and plasticizer producers determine how much of any cost movement passes through to prices. A pickup in downstream consumption or tighter feedstock supply would support firmer pricing, while renewed inventory builds or continued cautious buying would keep the market range-bound to soft.
Butanol prices are shaped primarily by the balance between supply and downstream demand across Asia, Europe, and North America. Ample supply combined with restrained downstream consumption, where buyers limit purchases to essential volumes, tends to keep negotiations soft and can push producers to lower offers to ease inventory pressure. Seasonal slowdowns, such as holiday periods in major consuming markets, can further dampen buying interest. When supply-demand alignment improves, whether through production discipline or a pickup in downstream offtake, prices tend to stabilize and can register modest upward adjustments.
Major butanol producers are concentrated in a few countries: Germany (BASF, OQ Chemicals), the United States (Dow Chemical, Eastman), South Africa (Sasol), Malaysia (BASF PETRONAS), China (PetroChina, SINOPEC), and Japan (Mitsubishi Chemical, KH Neochem). OXEA GmbH ranks among the top five global manufacturers. This geographic concentration creates supply security exposure for buyers, as disruptions at major facilities can tighten global availability. Consumption is spread across Asia (notably China and India), Europe, and North America, the primary consuming markets.
Butanol is produced via two primary petrochemical routes: propylene reacts with syngas in an oxo-reaction to form butyraldehyde, which is then hydrogenated to butanol; alternatively, propene undergoes hydroformylation. A biobased route uses ethanol fermentation. The finished butanol is consumed mainly as a chemical intermediate to produce butyl acrylate, butyl acetate, glycol ethers, and plasticizers, with additional direct use as a solvent in paints, coatings, pharmaceuticals, and cosmetics.
Butanol demand is driven by downstream sectors. Paints and coatings use it as a slow evaporating solvent in lacquers and enamels. Pharmaceutical and cosmetic sectors rely on it as an extractant and intermediate. In chemicals, it is a precursor for butyl acrylate, butyl acetate, glycol ethers, and plasticizers. Textile processing, automotive hydraulic and brake fluids, and fuel blending add further outlets. When these sectors run strongly, procurement volumes firm and price support builds; when they soften, buying interest turns cautious and prices ease.
Procurement Resource assesses butanol prices through a structured, data-driven methodology that combines primary engagement with producers, suppliers and traders, secondary market data, continuous monitoring of feedstock and input costs, trade-flow and inventory tracking, and exchange or spot benchmarks. These inputs are validated and translated into a transparent price assessment and outlook. The detailed methodology is available on the Procurement Resource website.
Our Price Analysis Methodology
About the Author
Udeesha Tomar
AVP - Strategy and Solutions
Leading procurement research solutions across chemicals, materials, and food & beverages, with expertise in price forecasting and market analytics.
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