Train derailment to impact steel supply

Pressures on Sydney’s well stocked steel suppliers are mounting.  A train derailment near the Victorian town of Inverleigh earlier this week has left Australia without an east-west train connection, the train derailment will impact the supply of steel to New South Wales, Victoria and Queensland.

The main Melbourne-Adelaide train line is now cut following the incident, which saw the track collapse under the pressure of a cargo train and spill containers across nearby fields.

While this wouldn’t usually cut off the eastern states from Perth and Adelaide, the only other train line (which runs from Sydney to Adelaide) is currently cut off due to flooding at Broken Hill.

There are now no trains able to travel between the east and west in the whole of Australia.

What this means for steel supply

The Whyalla steel mill in South Australia supplies much of the structural steel in Australia. With no train lines in operation to transport the steel, there may be substantial structural steel shortages in the coming weeks and months.

Edcon Steel is in discussions with our suppliers and reviewing our stock levels to try to minimise disruption to our customers.  We will continue to do what we can to manage shortages and supply issues, so we ask for your continued patience during this time.