Egyptian Cabinet has announced that the cut in natural gas prices from USD7/mmbtu to USD4.5/mmbtu would take effect in the current month of October 2016 after previously announcing that the decision would be implemented during September 2016, according to Al Borsa. Gamal El-Garhy, Head of the Chamber of Metallurgical Industries noted that the reduction in gas prices was discussed with Egypt's Prime Minister, Sherif Ismail, and he assured that the decision would take place as of the current month. El Garhy added that this move is very important to help support steel manufacturers, given the current challenging economic environment and increase in the FX rate.   The government has exhibited, in the past, hesitation on the matter of cutting gas price to steel manufacturers from USD7/mmbtu to the proposed USD4.5/mmbtu. While the decision would be positive for DRI integrated steel manufacturers, such as Ezz Steel [ESRS.CA], as it leads to cost savings of cUSD25/tonne, we remain skeptical pending a final outcome on the matter, given the government's past hesitation. (Al Borsa, Ahmed Hazem Maher)   Ezz Steel: EGP6.86 as of 11 October 2016, Rating: Buy, FV: EGP12.00 per share, MCap: USD420mn, ESRS EY / ESRS.CA