UK Bitumen Imports Increase in 1Q

Why It Matters

The import surge highlights the UK’s vulnerability to geopolitical price shocks and underscores the strategic value of long‑term supply contracts and diversified sourcing for the nation’s road‑construction sector.

Key Takeaways

• UK bitumen imports rose 18% YoY to 225,000 t in Q1
• Domestic price jumped from $470/t to $735/t, lagging Europe
• Shell‑Nynas joint‑venture remains sole UK bitumen refinery
• Imports from Shell Pernis rose to ~60,000 t per month
• German shipments halved as UK buyers shift sources

Pulse Analysis

The United Kingdom remains heavily dependent on imported bitumen, with only a single 24,000 b/d Shell‑Nynas refinery supplying domestic demand. In the first quarter, total imports climbed to 225,000 t, an 18 % year‑on‑year increase, despite a broader slowdown in national bitumen throughput that fell to a 1995 low of 322,000 t last year. Domestic price assessments rose from £345/t ($470/t) in February to £535/t ($735/t) by April, a rise that, while notable, stayed below the sharper spikes recorded in Germany, France and Italy.

The surge coincided with the onset of the US‑Iran conflict on 28 February, which pushed crude oil and bitumen spot prices higher across Europe. UK market participants insulated themselves by locking in term supply contracts at fixed rates before the war, cushioning the impact of rising input costs. At the same time, buyers reduced reliance on north‑German refineries, whose exports to the UK fell from 26,000 t to 11,000 t, while shipments from Shell’s 404,000 b/d Pernis refinery in the Netherlands surged to roughly 60,000 t per month, more than triple last year’s volumes.

Looking ahead, supply dynamics may shift as alternative feedstocks re‑enter the market. Recent arrivals of Venezuelan crude at Nynas’ 13,900 b/d Gothenburg plant and a 60,000 t load of high‑sulphur fuel oil suggest a tentative diversification of input sources, the first such deliveries since 2019. If these streams prove reliable, they could temper future price volatility and reduce the UK’s exposure to geopolitical shocks. Industry observers will watch how these developments influence contract negotiations, refinery utilization, and ultimately the cost structure for road‑building and maintenance firms across Britain.