The cost of zinc a day in London fell on Tuesday amid an increase in stocks in exchange warehouses, Reuters reported. Markets questioned the sustainability of demand despite supply disruptions amid the energy crisis.

Three-month zinc futures on the LME fell 0.7 percent to $3,420.50 a ton around 05.40 GMT. Quotes retreated from a six-week high reached on Aug. 4, when major zinc producer Glencore warned of reduced output of the metal due to high energy prices.

What affects the cost of a zinc chart?

Zinc stocks in LME-certified warehouses posted the strongest one-day increase since January 2021 to 40,950 tons, the highest since June 20.

“Demand in the West is weakening amid tightening monetary policy and rising energy prices,” ANZ analysts said.

“These price pressures could lead to a more limited supply in the market, with further reductions possible in the coming months,” the analysts added.

The slowdown in global economic growth is putting pressure on base metal prices as lower economic activity contributes to weaker demand.

Unexpectedly strong U.S. labor market data released Friday heightened fears of more aggressive interest rate hikes by the Federal Reserve, which could further slow economic growth.

Zinc stocks on the Shanghai Futures Exchange as of Aug. 5 were still at their lowest since Jan. 21, 88,896 tons, down 50 percent from March.

September zinc futures on the Shanghai Futures Exchange remained flat at 24,210 yuan ($3,583.38) per ton.

LME copper futures were down 0.8% to $7,923.50 a ton; lead was down 1.7% to $2,126.50 a ton, and tin was down 1% to $24,060 a ton.