UK bitumen consumption lowest since 2016 last year

UK bitumen consumption fell to its lowest for seven years last year thanks to low government funding for road construction projects and higher bitumen costs.

The latest provisional UK data showed the country consumed 1.54mn t of bitumen last year, a 24,000t fall from 2022, but down nearly 300,000t from a peak of 1.84mn t in 2021, following a surge in activity after delays during the Covid-19 lockdowns. Bitumen consumption was the lowest since 2016.

The average UK delivered bitumen truck price was around £372/t ($474/t) in 2021, £502/t in 2022 and £496/t last year.

UK bitumen production also fell last year, by 147,000t on the year to just 373,000t, the lowest since records began in 1995 as Prax's 105,700 b/d Lindsey refinery ceased bitumen production in early 2023.

Even with lower bitumen consumption, production levels fell faster and the UK market has become ever more import dependent. This has led to a number of new and expanded bitumen storage options along the UK coastline including Continental Bitumen's new storage facility near Bristol and TotalEnergies' terminal expansion at Navigator Terminals' Teesside facility.

The one-time cost of bringing roads in England and Wales up to a "reasonable" standard increased by nearly 11pc year on year to £14.02bn in 2022, according to the latest Annual Local Authority Road Maintenance (Alarm) survey published in March 2023, its highest ever. This cost is likely to increase.

By Tom Woodlock