Platts clarifies Brazilian anhydrous ethanol assessment process

S&P Global Platts would like to clarify how its Brazil anhydrous domestic ex-mill Ribeirao with taxes assessment is valued.

In the absence of Brazil anhydrous ethanol bids, offers or trades, Platts typically applies a percentage premium to the value of Brazil hydrous ethanol. The percentage premium is determined based on information from the market.

Platts has historically applied this premium to the Brazil hydrous ethanol value after subtracting just the ICMS tax.

Effective July 10, 2020, Platts will apply this premium to the value of Brazil hydrous ethanol, after subtracting the value of both the ICMS tax as well as the PIS and COFINS taxes. The PIS and COFINS taxes will then be added back to derive the value of Brazil anhydrous ethanol with taxes.

The Brazil anhydrous ethanol with taxes assessment reflects the PIS and COFINS taxes but not the ICMS tax; the Brazil hydrous ethanol with taxes assessment reflects both the PIS and COFINS taxes as well as the ICMS tax.

The relevant assessments are:

Anhydrous ANP Domestic Ex-mill Ribeirao with taxes - AAXNN00

Hydrous ANP Domestic Ex-mill Ribeirao with taxes - AAXNQ00

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