Strong Fertlizer Market Seen in 2004

CALGARY - Feb 10/04 - SNS -- Agrium Inc. is optimistic about the fertilizer outlook for 2004 because of strong 2003 crop grain and oilseed markets and reports China may require additional grain and oilseed imports in 2004.

In its latest annual report, the company told its shareholders prices for ammonia are expected to remain high during the first quarter of 2004. North American urea prices are also expected to remain strong through the spring season.

China's net exports for urea were over two million metric tons (MT) for 2003. Its export activity is expected to slow into the first half of 2004.

Agrium reported U.S. urea production was down 28% in 2003 compared to the previous year, while producer urea inventories ended the year 36% lower. In Canada, urea production was down 13% and ending inventories down three%, which contributed to the current tight supply situation. The North American nitrogen supply/demand situation is expected to remain tight into the spring, with nitrogen imports to remain high in order to meet anticipated strong demand.

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