Tarek Kabil, Minister of Trade and Industry, has announced that the government is willing to apply the reduction in natural gas price to USD4.5/mmbtu to steel manufacturers as of September 2016, noting that the decision was delayed due to the tough economic conditions. The minister, also stated that the supply of natural gas should improve by the end of August and agreed to adjust the supply of gas for steel factories.    Overall, the proposed USD2.5/mmbtu gas price cut should improve rebar costs per tonne by cUSD25. This cost improvement should translate to EGP120mn improvement in earnings for Ezz Steel [ESRS.CA], if the decision is finally applied by September; nevertheless we expect the company to be loss making in 2016, however, while the cut in gas prices should improve earnings for DRI integrated steel producers, such as Ezz Steel, we note that the decision has seen considerable hesitation from the government in the past months. Hence, we prefer to see the final decision implemented and in place before we assume any upside to the company's earnings. (Al Mal, Ahmed Hazem Maher)     Ezz Steel: EGP8.21 as of 2 August 2016, Rating: Buy, FV: EGP12.00 per share, MCap: USD502mn, ESRS EY / ESRS.CA