Economic Growth
One of the three elements of our end-use consumption analysis requires a correlation with an indicator of Economic Growth in a given region. The analysis uses a multiplier on this economic growth indicator to calculate these elements' contribution to the growth in demand for the product. The most common indicator used in our system is GDP as this is commonly understood and readily available around the world. Alternative indicators include population, industrial production, construction activity etc.
End-Use
Nexant models consumption in two distinct ways; Firstly by consumption as feedstock for making petrochemicals, and secondly as an "end-use". This second form of demand models the consumption of a product in the wider economy as distinct from use as a petrochemical intermediate. End-Use consumption is modelled using a combination of multipliers on key economic indices along with a penetration effect. Nexant aggregates these End-Uses into one "End-Use" when displaying a regional total as the End-Use sectors modelled in each country within a given region can vary.
End-use consumption
The end-use for a petrochemical intermediate / product is a term used to describe the aggregate consumption of a given chemical into a homogenous industrial/consumer sector. End-Uses can be contrasted with petrochemical demand as a feedstock (e.g. ethylene demand into PE) which is classified here as derivative consumption