World refined cobalt production was 55,878 metric tons in 2008, up 4.1% on the year mainly due to improved refined production in China, the Cobalt Development Institute, or CDI, said Tuesday.

While most producers saw refined cobalt output fall in 2008, Chinese production was up nearly 38% at 18,239 tons due to increased shipments of concentrate and cobalt-containing intermediates into the country, the CDI said.

In 2008, CDI member companies produced 5%, or 1,675 tons less than in 2007, mainly through lower production recorded by Norilsk Nickel (GMKN.RS) and Congo's state-owned Gecamines, although other CDI member companies also recorded modest falls.

Gecamines recorded probably the largest percentage fall in refined production year-on-year, the CDI said, while Norilsk's production fell around 30% year-on-year, although it didn't provide precise figures.

CDI members - 12 producers from 11 countries - account for around 56.2% of world output.

Minara Compagnie de Tifnout Tighanimine, French metals group Eramet SA (ERA.FR), Belgian materials company Umicore SA (UMI.BT) and Vale Inco Ltd., a subsidiary of Brazilian miner Companhia Vale do Rio Doce (RIO), recorded small increases.

Apart from Minara Resources (MRE.AU), which recorded a small increase in output, non-CDI member companies reporting were a net 818 tons lower than in 2007.

Cobalt production in India fell, mainly due to a shortage of raw material, the CDI said.

The U.S. Defense Logistics Agency's uncommitted cobalt inventory stood at 473 tons at the end of 2008, the CDI said, with DLA deliveries down 414 tons from 2007, at 203 tons.

The CDI said global apparent consumption was around 60,000 tons in 2008. It didn't provide any details, but said that this was an increase from 2007, which it attributed almost entirely to growth in Asian demand.

Cobalt prices, which are currently trading at around $17.00 a pound, appear to have been stabilizing in the last quarter and may even be recovering after collapsing from highs of $52.00/lb last year, said the CDI.

-By Michele Maatouk, Dow Jones Newswires; 44-207-842-9447; michele.maatouk@dowjones.com