Treatment charges for this year's largest Asian and European annual contracts have been agreed. The 2017 terms represent a historically low value share of the paid zinc base price. Teck has reduced its production guidance for the Red Dog mine in Alaska. The company now projects that output will be some 70kt lower than previously forecast. Meanwhile China Minmetals plans to shut Zhuzhou the world's fourth largest smelter and the smaller Shuikoushan smelter. It is to only partially replace the 500kt/a of lost capacity. The whole of the base metals complex came under pressure this month and as a consequence the price of zinc drifted to its lowest level since the beginning of the year. The zinc price ended the month at just over $2600/t 5% lower than the end of March. With cash to three months spreads once again narrowing there is near term upside risk to the price.