According to a new report from RBC Capital Markets, iron ore prices could rise as much as 35% in 2008 due to booming demand from steelmaking regions in Asia.

An analyst of RBC said that “Demand, particularly from China has continued unabated, while supply from almost every producer remains constrained.” He added that RBC's forecast is on the high end of similar revisions by brokerages in the past three months. UBS AG in July raised its iron ore price forecasts to a 25% gain in 2008 up from 10%, while Goldman Sachs JBWere on August 24th 2007 raised its forecasts to a 30% gain from 9%.

RBC Capital Markets is an international corporate and investment bank that provides innovative solutions and a focused set of products and services to institutions, corporations, governments and high net worth clients around the world. With nearly 3,700 professional and support staff.