LEEDS coach Brian McDermott reckons his side could be competitive in the NRL despite losing 38-4 to Melbourne in the World Club Challenge.

The Rhinos, who agreed to play the match in Australia after the Storm declined to travel to England, threatened to pull off a shock at AAIMI Park when Ryan Hall gave them the lead with a 10th-minute try.

They went on to concede seven unanswered tries as Melbourne showed their class but former Kangaroo international Wally Lewis told television viewers Leeds would probably come seventh or eighth in the NRL and McDermott also believes they could hold their own.

"I'd like to say that, given 10 games like that, by game eight or nine or game 10, I reckon we'd be up to that level," he told the post-match press conference.

"So we'll learn some massive lessons from that. But unfortunately it will be another couple of games before we're in a game as intense as that and in one played at that level."

The Super League champions went into their eighth World Club Challenge without four senior front-row forwards through injury and lost teenage full-back Jack Walker (knee) and loose forward Steve Ward (calf) before half-time.

McDermott says Walker will need surgery to repair a torn cartilage but may miss only two weeks while Ward, who has only recently returned from shoulder surgery, has suffered a torn calf.

"We still could have been better but they were two really important positions to lose," McDermott said.

"In the first half, while I never thought we had a grip on game, I never thought lost it completely either. It was a decent contest.

"It was always a challenge to come here and try to throw something at Melbourne which would trouble them. Five drives and a kick wouldn't have, so we had to try something different.

"But, when you use the ball a bit more than you normally do, you run the risk of making errors and those errors killed us, they gassed us out.

"I thought Melbourne's defence was outstanding, it was suffocating, and the more game went on the better they got, they really warmed up to it.

"We came up with challenging plays and tried to get some second phase going but they were just smothering, it was awesome defence."

Leeds captain Kallum Watkins remained proud of his team's efforts and, like his coach, paid tribute to Melbourne's defence.

"It was really tough but exciting out there," Watkins said. "We wanted to back ourselves and play a little bit, move them about and give ourselves an opportunity.

"But I think we shot ourselves in the foot, especially in the first half when we gave them too many opportunities and they punished us.

"We knew that if we gave them opportunities to apply pressure they would be clinical and they showed what a formidable side they are.

"For us there is plenty to learn from. I'm immensely proud of the effort - we never gave up. Things didn't come off for us but you've got to give them a lot of credit for their defence.

"The result didn't go our way and we're pretty disappointed with that. (It was) not meant to be, but we'll move on and focus on Widnes next Sunday."