Supporters are calling for significant federal funds to save Arrium steel.

Arrium, formerly known as OneSteel, has been in administration since April with debts of over $4 billion.

While analysts and liquidators pore over the run of rough decisions that led to the steel-maker’s decline, forces are gathering to save it.

Workers appear to have put a lot of stock in the Nick Xenophon Team (NXT), which campaigned hard for a rescue package for Arrium, pushing it to the verge of victory in the safe Liberal seat of Grey at the recent federal election.

The Federal Government has pledged to give Arrium a $50 million loan, but the company will need hundreds of millions of dollars more to dig itself out.

Senator Nick Xenophon wants the Federal Government to approve an urgent capital injection of up to $250 million.

He wants procurement and anti-dumping laws to be changed so that they better support the Australian industry as well.

Xenophon will lead a new protectionist power block when the Senate returns, comprised of himself, two other NXT senators, a expected crossbench support from Pauline Hanson's One Nation and new senator Derryn Hinch.

“If Arrium falls over, Australian manufacturing falls over,” Senator Xenophon told the ABC.

“And with it we will lose not just the 6,000 jobs in Whyalla — which will render this city a ghost town — it will actually cost us tens of thousands of jobs around the country.

“Failure is not an option here.

“This is not just a test for me, it's a test for the Federal Government.”

Administrators Korda Mentha say the steelmaking plant needs closer to $300 million to stay globally competitive.

Insiders say that if the right buyer turns up, the Government may be persuaded to increase its loan offer.

Industry Minister Greg Hunt continues to resist calls for more direct funding, but appears to be listening.

“There are no proposals before us from the administrator,” Mr Hunt said.

“There's an indication that they may seek to come back at a later time.

“We are committed to doing all of the things that can reasonably be done to provide job security, to give this firm a chance at being competitive, and to give the workers a chance at long-term job security.”