The sale of collapsed steel manufacturer ASW could be finalised during the firm's traditional summer break.
The firm, which slipped into receivership earlier this month, resumed production at its Cardiff and Sheerness sites last week. Receiver KPMG said it was able to recommence production at the £270m-turnover firm because of a hike in the price of rebar.

Steel sources claimed a sale by KPMG could be finalised during ASW's holiday break, which starts this week. One said: "It's a big opportunity to finalise a sale. There must be pressure to get something done in August."

A KPMG spokesperson confirmed the firm was looking for a quick sale. She said: "We are looking for a buyer as quickly as possible." The spokesperson added that KPMG had made no redundancies among the 1300 staff as yet. The collapse of ASW, which produces 46% of the UK's reinforced steel, has led to a shortage of rebar and price rises. Rival steel manufacturer Alpha Steel, which left the construction market last year, said last week it was looking to re-enter the sector to fill the shortfall created by ASW's plight.

Ben Bowsher, executive director at reinforced steel certification body CARES, said there was already a shortage of specific rebar products.

He said: "There was a shutdown for the best part of the week. It's impacted on certain sizes, such as 50 mm bars, which not many people sell except ASW."

Bowsher said ASW's collapse could affect how designers and contractors procure reinforced steel. "In the longer term this will force steel buyers to look more closely at their supply chains," he said.