Isobutanol price December 2025 and outlook (see chart below)

  • Europe:US$1.5/KG, 0.7% up
  • Northeast Asia:US$0.85/KG, 7.6% up
The chart below summarizes Isobutanol price trend per region, as well as the outlook. It takes a moment to load.

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Isobutanol price index

This post is a summary of the Isobutanol/n-Butanol price developments. The price developments of Isobutanol/n-Butanol alcohol are expressed in US$ prices converted FX rates applicable at the time when the price was valid. Isobutanol/n-Butanol price index developments are calculated from multiple separate sources of data to ensure statistical accuracy.

The outlook for Isobutanol/n-Butanol prices, on the second tab, is generated from different inputs including:

  • Very recent price developments of immediate cost drivers of Isobutanol/n-Butanol prices
  • Recent price developments of underlying feedstocks which drive the price of Isobutanol/n-Butanol
  • Market futures for both cost drives and feedstocks of Isobutanol/n-Butanol prices
  • Adjustment of current supply/demand imbalances in the Isobutanol/n-Butanol market
  • Longer term trends in likely demand conditions

Further information on the Isobutanol price chart

 

What is isobutanol

Isobutanol is an organic chemical compound that is a type of alcohol. It is a clear, colorless liquid with a characteristic odor and is used as a solvent, a fuel, and in the manufacture of various chemicals. Isobutanol is a secondary alcohol, which means it has a hydroxyl group (-OH) attached to a carbon atom that is bonded to two other carbon atoms.

In fuel applications, isobutanol is blended with gasoline to increase the octane rating and reduce emissions. It can also be used as a direct replacement for gasoline in vehicles designed to run on higher blends of ethanol.

In the chemical industry, isobutanol is used as a starting material for the production of various chemicals, including isobutyl acetate, which is used as a solvent in the production of paints and coatings.

 

How is isobutanol produced

Isobutanol is typically produced through a fermentation process that utilizes microbes, such as yeast or bacteria, to convert sugar or starch into alcohol. The specific strains of yeast or bacteria used in the fermentation process are designed to produce isobutanol as the primary product.

The process of producing isobutanol typically involves the following steps:

Raw Material Preparation

The first step involves preparing the raw materials, which typically consist of sugar or starch. These raw materials are converted into simple sugars, such as glucose, through a process known as hydrolysis.

Fermentation

The simple sugars obtained from the raw materials are then fermented by the yeast or bacteria to produce isobutanol and other byproducts, such as carbon dioxide and other alcohols. The conditions of the fermentation, such as temperature, pH, and nutrient levels, are carefully controlled to optimize the yield of isobutanol.

Distillation

The fermented mixture is then distilled to separate the isobutanol from the other byproducts. The isobutanol is then purified and concentrated to produce the final product.

In addition to the fermentation process, isobutanol can also be produced through chemical synthesis, although this method is less common due to its higher cost and complexity. In chemical synthesis, isobutanol is produced by reacting propylene with hydrogen in the presence of a catalyst.

 

What is isobutanol used for

Isobutanol has a variety of uses, including:

Solvent

Isobutanol is used as a solvent in the production of paints, coatings, inks, and other chemicals due to its high solvency and low volatility.

Fuel

Isobutanol is used as a fuel, either alone or blended with gasoline, diesel, or other fuels. When blended with gasoline, isobutanol can increase the octane rating and reduce emissions.

Chemical Intermediate

Isobutanol is used as a starting material in the production of various chemicals, including isobutyl acetate, which is used as a solvent in the production of paints and coatings.

Biodegradable Plastic

Isobutanol can be used as a feedstock in the production of biodegradable plastics.

Pharmaceuticals

Isobutanol is used in the production of certain pharmaceuticals, such as sedatives and tranquilizers, as a solvent and intermediate.

Overall, isobutanol is a versatile chemical that is used in a wide range of applications due to its unique properties and chemical characteristics.

 

What drives the cost of isobutanol

The cost of isobutanol is driven by several factors, including:

Raw Materials

The cost of the raw materials used to produce isobutanol, such as sugar or starch, can significantly impact the overall cost of the product. Fluctuations in the prices of these raw materials can result in changes in the price of isobutanol.

Energy Costs

Energy costs, such as the cost of electricity and natural gas, are significant factors in the production of isobutanol. Changes in energy prices can result in corresponding changes in the cost of isobutanol.

Production Capacity

The availability of production capacity and the level of competition in the market can also impact the cost of isobutanol. 

Transportation Costs

The cost of transportation can also impact the price of isobutanol, as the product is often transported over long distances from the production site to the customer. Changes in transportation costs, such as changes in fuel prices or the cost of shipping, can result in corresponding changes in the price of isobutanol.

Regulations

Government regulations, such as environmental regulations and taxes, can also impact the cost of isobutanol. These regulations can increase the cost of production, which is reflected in the price of the final product.

In summary, the cost of isobutanol is influenced by a complex interplay of factors, including the availability of raw materials, energy costs, production capacity, transportation costs, and government regulations.

 

What are specific properties of Isobutanol

Isobutanol is a colorless, flammable, and versatile chemical with the following specific properties:

Solubility

Isobutanol is soluble in water and a wide range of organic solvents, which makes it a useful solvent for a variety of applications.

Boiling Point

Isobutanol has a boiling point of 108.3°C (226.94°F), which makes it useful as a solvent and blending component in various applications.

Octane Rating

Isobutanol has an octane rating of 113, which is higher than that of ethanol (around 105) and similar to that of gasoline. This makes it a useful blending component in gasoline to increase the fuel’s octane rating.

Viscosity

Isobutanol has a lower viscosity than gasoline, which makes it useful as a fuel blending component in gasoline.

Evaporation Rate

Isobutanol has a moderate evaporation rate, which makes it a useful solvent for a variety of applications.

Volatility

Isobutanol has lower volatility than gasoline, which makes it a useful blending component in gasoline to reduce emissions.

Biodegradability

Isobutanol is biodegradable, which makes it useful as a feedstock in the production of biodegradable plastics.

These specific properties make isobutanol a versatile chemical that is used in a wide range of applications, including as a solvent, fuel blending component, intermediate, and feedstock for the production of biodegradable plastics.

 

How big is the isobutanol market

The isobutanol market is growing, driven by the increasing demand for alternative fuels and solvents in various applications. According to recent market research, the global isobutanol market was valued at approximately USD 1.3 billion in 2020 and is expected to reach a value of approximately USD 2.3 billion by 2026, growing at a compound annual growth rate (CAGR) of around 10%.

The growth of the isobutanol market is driven by several factors, including the increasing demand for biofuels, the growing demand for high-performance solvents in various industries, and the increasing demand for biodegradable plastics. The increasing demand for biofuels, in particular, has driven the growth of the isobutanol market, as the product can be used as a fuel blending component or as a direct replacement for gasoline in vehicles designed to run on higher blends of ethanol.

In terms of geography, Asia-Pacific is the largest market for isobutanol, driven by the growing demand for biofuels and solvents in countries such as China, India, and Japan. The growth of the isobutanol market in North America and Europe is also significant, driven by the increasing demand for biofuels and high-performance solvents in these regions.

Overall, the isobutanol market is growing and is expected to continue growing in the coming years, driven by the increasing demand for alternative fuels and solvents in various applications.

According to https://oec.world/ :

N-butyl alcohol are the world’s 2563rd most traded product.

In 2020, the top exporters of N-butyl alcohol were South Africa ($117M), Chinese Taipei ($108M), Malaysia ($60.9M), Saudi Arabia ($60.6M), and United States ($57.3M).

In 2020, the top importers of N-butyl alcohol were China ($183M), Belgium ($77.6M), Germany ($66.4M), India ($38.7M), and South Korea ($31.8M).

 

Further information