ETF Securities analyst Simona Gambarini also noted that production shutdowns and labor strikes in South Africa contributed to the 30% drop in PGM mine production for the first four months of this year compared to 2011.
Bielski estimates that global palladium supplies will fall short of demand by 500,000 to 600,000 ounces this year and by 800,000 next year, in a total market of 7.5 million ounces.
Palladium futures are currently trading around $570 per ounce, compared to the $827 price in the same month last year. The ETFS Physical Palladium Shares (NYSEArca: PALL) is down 13.8% year-to-date. [ETF Chart of the Day: Palladium]
For more information on palladium, visit our palladium category.
Max Chen contributed to this article.