HS Code:
Butanes (HS Code: 271113) are a category of liquefied petroleum gas (LPG) primarily consisting of butane and isobutane. These hydrocarbons are used as fuel for heating, cooking, and as a propellant in aerosol sprays. Butanes are also critical as a feedstock in the petrochemical industry for producing ethylene and other chemicals. Global trade in butanes is driven by energy demands, industrial applications, and seasonal variations in consumption, particularly in colder regions where they are used for heating.
Total Trade Volume
Approximately 60 million metric tons
Data from 2022
Source
United Nations Comtrade Database and International Energy Agency (IEA)
15 million metric tons
25% of total trade of total trade
Increasing
10 million metric tons
16.7% of total trade of total trade
Increasing
8 million metric tons
13.3% of total trade of total trade
Stable
6 million metric tons
10% of total trade of total trade
Increasing
5 million metric tons
8.3% of total trade of total trade
Stable
Average Rate
3.5% ad valorem
Highest Rate
10% (applied by certain developing economies to protect domestic industries)
Lowest Rate
0% (under free trade agreements like NAFTA/USMCA and EU-GCC agreements)
Rising demand in Asia-Pacific for residential and industrial use
Increased exports from Middle Eastern countries to meet demand in countries like India and China
2021-2022
Shift towards cleaner energy sources
Moderate growth in butane usage as a transitional fuel compared to more polluting alternatives like coal
2020-2022
Fluctuations in crude oil prices
Direct impact on butane prices and trade volumes, with higher oil prices increasing production costs
2022
The United States has ramped up butane exports following increased production from shale gas, targeting markets in Asia and Europe.
Mid-2022
Strengthened US position as a leading exporter, putting competitive pressure on Middle Eastern suppliers.
Qatar announced the expansion of its North Field project, which will increase production and export of butanes as a byproduct of LNG.
Early 2023
Expected to solidify Qatar's dominance in the global butane market, potentially lowering prices due to oversupply.
The European Union introduced tighter regulations on the use and import of fossil-based fuels, including butanes, to meet carbon neutrality goals.
Late 2022
Potential reduction in butane imports to Europe, redirecting trade flows to Asia and other regions.