Penetration effect is a mathematical methodology used to model the market effects of how demand growth in a given sector matures over time. As one of the three elements of our End-Use Consumption analysis, the penetration effect uses a time dependant function which recognises product life cycle effect and the impact on the growth in demand for a product. A typical sector will experience a demand enhancement once it has established a new end-use. This enhancement is lost as the product approaches its equilibrium market share in the sector and can subsequently become a negative contributor to growth if new products are introduced into the sector. The penetration factor therefore determines the relation to the chosen growth index over time.
A process is a distinct petrochemical technology for producing a product from a feedstock (occasionally a choice of feedstocks). Many processes remain under some form of patent control, however they are generally available for third parties to use, subject to licensing fees. Our process definition identifies the main product used to determine plant operating characteristics as well as any associated co-product and feedstock requirements.
A process type is a term given to a grouping of similar processes.
Producer Inventory Rise
Producer inventory rise is the net change in producer-held product inventory. In most markets, the annual change in this quantity is not significant, and producer inventory rise is only included in SDT balances when there is an abnormal inventory build or draw-down which affects the market.