Cairo-Mubasher: Pharos Research has set the fair value of Ezz Steel at EGP 10.7 on a potential gas shortage.

The research firm said Ezz Steel, which is considered one of the biggest steel producers in Egypt, is likely to face gas shortage in 2015 at least.

Mohamed Hanafy, chief of Chamber of Metallurgical Industries, said yesterday that EGAS has cut off natural gas supplies to steel factories until further notice.

He stressed the fact that the direct reduced iron (DRI) facilities totally halted production several months ago.

The utilisation rates at steel mills plummeted to 20-40%, while other mills totally suspended production until they receive confirmation on the exact time when gas will be pumped back, Hanafy said.