Concentrate tightness is now beginning to impact on smelter production. Following the announcement last month that Korea Zinc's Onsan smelter plans to produce 50kt less this year, we have identified 19 smelters in China that plan temporary production cuts. It is the shortage of concentrate and the price of concentrate that are the main drivers. Meanwhile, in Canada, the Valleyfield smelter is being run at 50% capacity, due to the on-going industrial dispute. Furthermore, in Peru, a sustained period of heavy rains and flooding brought production temporarily to a halt at the 340kt/a Cajamarquilla smelter and forced a number of zinc miners to declare force majeure on shipments of concentrate. Contract terms for 2017 have been settled for a major Asian frame contract. Terms in Europe have not yet been agreed.