Tarek Kabil, Minister of Industry and Foreign Trade, mentioned that the government is revising the decision to decrease the price of Natural Gas supplied to steel factories from USD7/mmbtu to USD4.5/mmbtu after it had initially decided to cut the gas price back in March 2015. According to a source at The Egyptian Holding Company for Natural Gases (EGAS), supplies of natural gas will also be cut during August for heavy industries to cater for higher electricity demands during the summer months. The source also stated that the deficit in gas supply would be imported and would cover 1.3 bcf/day. Overall, we were assuming utilisation rates for DRI integrated plants at Ezz Steel [ESRS.CA] to come in at an average of 75% throughout 2016, as gas supply in summer months was expected to be constrained. As for the decision not to reduce gas prices to USD4.5/mmbtu, we think that this hesitation in imposing a certain gas price poses risks, especially to our 2016 estimates as it could potentially wipe out any profits for the year. We are already assuming gas prices would revert back to USD7/mmbtu on a terminal basis; hence, we think the downside risk to our valuation is limited from this move. (Al Borsa, Ahmed Hazem Maher)   Ezz Steel: EGP8.41 as of 08 June 2016, Rating: Buy, FV: EGP14.00 per share, MCap: USD515 million, ESRS EY / ESRS.CA