UK bitumen demand dropped by almost 20pc in the third quarter of 2024, and in January-September fell by more than 10pc compared with the previous year, continuing a weak trend since 2021, data from the UK government's department for energy security and net zero (DESNZ) show.
The UK consumed 351,000t of bitumen in the third quarter, a drop of 19.5pc from the same period in 2023. Consumption in January-September fell by 10.4pc from the same period of 2023 to 1.18mn t.
This follows a downward trend in consumption since 2021 in the UK market. Between 2021 and 2023, UK domestic consumption fell by 16.4pc, while production dropped by 41.5pc.
Bitumen production rose in the third quarter though, by 6.7pc on the year to 131,000t. Production for 2024 up until October rose by 27.3pc on the year to 425,000t.
The market slowdown is part of an overall downward trend across UK petroleum products. Between 2018 and 2023, total UK petroleum product deliveries for domestic consumption have fallen by 11.6pc, while total UK petroleum product output fell by 13.9pc.
The UK has just one remaining bitumen-producing refinery, at Eastham, after the Lindsey refinery in northeast England ceased bitumen production in 2023. UK production has been on a downward trend for longer though, dropping since 2006, with the country becoming more reliant on bitumen imports.
UK road and construction firm Tarmac said in December that it would start receiving bitumen cargoes at the 20,000t Dagenham bitumen terminal in southeast England in late January. The terminal is operated by trading firm Trafigura's Puma Energy.
Market participants expect highway spending and bitumen demand to stay slow as the UK government faces public finances pressure.
