“Mine supply has been under pressure in 2012, with major platinum miners reporting declines in March quarter production, mainly due to the African labor disputes,” they wrote. [Why Platinum ETFs are Rallying]

In the palladium market, the analysts said fabrication demand is at an 11-year high, but is overshadowed by recycling and Russian supply. [Industrial Demand Brings Out Palladium ETF Luster]

“Palladium is less exposed to the sluggish European market and is more linked to buoyant emerging market and U.S. auto markets,” ETF Securities noted. “However, autocatalyst recycling hit a record high in 2011, while Russia again defied expectations of an exhaustion in its state stockpiles to swing the market from deficit to surplus in 2011. GFMS expects a deficit in 2012. The risk factor, apart from another surprise from Russian state reserves, is a further decline in investor appetite akin to 2011.”

Precious metal ETFs traded sharply lower Tuesday on fresh worries over Europe’s debt crisis. [Gold, Silver ETFs Dive in Risk-Off Trade]

ETFS Physical Platinum Shares