Lower production costs to offset plunging prices, mine closures, say experts

The world's biggest iron ore producers are targeting record shipments as lower output costs offset plunging prices and less competitive mines shut down in China.

Vale SA, Rio Tinto Group, BHP Billiton Ltd and Fortescue Metals Group Ltd are still making money even after prices of the steel-making ingredient dropped 36 percent since December to their lowest level since 2009. The companies are betting that higher-cost producers will be squeezed out of the market.