Question-and-Answer Session
Operator
(Operator Instructions) Our first question will come from the line of John Rogers of D.A. Davidson. Please proceed.
John Rogers - D.A. Davidson & Co.
Good morning. I was curious -- first of all, on the GreenLeaf, the operation you opened in New Jersey, is that your first new store that you’ve opened?
John D. Carter
No, it’s actually a transfer point where we are able to take lower cost parts from our operations in the south and fill our inventory levels, both in New England and our other operations on the East Coast. We’re given some price advantage there and then we also are able to sell into those markets around New York, New Jersey.
John Rogers - D.A. Davidson & Co.
Okay, but is it included in the 18 --
John D. Carter
Yes, it is.
John Rogers - D.A. Davidson & Co.
Okay. All right, just so I’m clear on that. And then secondly I guess in terms of the scrap business and particularly the export business looking out later this year, are you seeing -- I mean, I assume you are now selling product out into -- close to March. Pricing is still -- I mean, you are seeing, I’ve heard some record levels for some prices being quoted recently, some of that export market. Is that what you are seeing as well and is it both Asia and Europe?
John D. Carter
Well, as you know, we don’t give specific information on pricing but we are very positive about our pricing in the second quarter and we are seeing strong demand, both in Asia and the Middle East and other areas that we sell into.
There are a number of interesting things happening on the demand side, including the fact that some recent publications in Japan have indicated that there are predictions there about scrap being used for the basic oxygen furnace. It’s noted a lower emission commitments that they’ve made under their greenhouse gas emissions requirements in Japan.
And of course, there’s a lot of new construction of EAF mills in Korea, so we see a lot of not only good pricing but upward demand on supply.
John Rogers - D.A. Davidson & Co.
Okay, and I guess just finally, John, you talked about being active in terms of looking at M&A opportunities. You still expect more of it in the scrap side of the business, you’re seeing more opportunities there or does that include the other businesses as well?
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