UK ethanol imports rebounded in February

UK imports of undenatured ethanol from the EU rose in February after hitting a nine-year low in January, the first month of new post-Brexit trading rules. But February's imports were well below levels from a year earlier, weighed down by lockdown restrictions in the UK.

The UK imported just over 11,000t of undenatured ethanol — typically used for road fuel blending — from EU member states in February, up from 7,000t in January but 65pc lower on the year, according to preliminary customs data. The UK's most recent lockdown, introduced in late December, caused a decline in road fuel demand, and consequently ethanol, in both January and February.

The Netherlands was the EU's primary supplier of ethanol to the UK in February at just under 5,000t, displacing France which supplied 4,000t. UK imports from outside the EU also picked up, with just over 11,000t of undenatured ethanol arriving from non-EU countries in February, up from 3,000t in January. Around 8,000t of February's non-EU imports came from the US and just under 3,000t from Pakistan.

UK exports of ethanol to EU member states increased sharply to 22,500t in February from just above 3,000t in January, with more domestic volumes available for export because of the decline in road fuel demand. Around 14,000t went to the Netherlands, while 5,000t was exported to Belgium and 2,500t went to Denmark. UK exports to countries outside the bloc were once again negligible.

UK imports of biodiesel from the EU declined by 45pc on the month and by 52pc on the year to just under 34,000t in February, the lowest monthly volume since November 2018. Around 19,000t was brought in from the Netherlands and 6,000t from Belgium. Just over 5,000t also arrived from China. Meanwhile, the UK exported just below 20,000t of biodiesel to the EU in February, steady on the month.

Preliminary government figures released last month showed UK biodiesel consumption was largely unchanged on the year at 1.4mn t in 2020, while ethanol consumption dropped to 480,000t from 598,000t in 2019.

By Daniel Mackay