10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)
x	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended: September 30, 2014
OR
o	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from     to

Commission file number: 001-12127

EMPIRE RESOURCES, INC.

(Exact name of registrant as specified in its charter)

Delaware	22-3136782
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)

One Parker Plaza

Fort Lee, New Jersey 07024
(Address of principal executive offices)
(Zip Code)

(201) 944-2200
(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No?o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer o	Accelerated filer o
Non-accelerated filer o	Smaller reporting company x
(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x

The number of shares of the registrant’s common stock, $0.01 par value, outstanding as of November 11, 2014: 8,976,231

TABLE OF CONTENTS

		Page
	PART I
Item 1.	Financial Statements	3
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	16
Item 4.	Controls and Procedures	22
	PART II
Item 6.	Exhibits	22

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PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

EMPIRE RESOURCES, INC. AND SUBSIDIARIES

 Condensed Consolidated Balance Sheets
(In thousands except share and per share amounts)

	September 30, 2014  (Unaudited)			December 31, 2013
ASSETS
Current assets:
Cash	$	4,663		$	2,477
Trade accounts receivable (less allowance for doubtful         accounts of $543 and $562)		97,393			52,696
Inventories		120,104			139,752
Deferred tax assets		3,194			3,217
Advance to supplier, net of imputed interest of $87 and  $176		3,236			3,147
Other current assets, including derivatives		6,051			6,081
Total current assets		234,641			207,370
Advance to supplier, net of imputed interest of $3 and $56,         and net of current maturities		841			3,287
Preferential supply agreement, net		401			641
Long-term financing costs, net of amortization		962			358
Property and equipment, net		3,886			3,949
Deferred tax assets		-			215
Total assets	$	240,731		$	215,820
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Notes payable - banks	$	132,785		$	107,922
Current maturities of mortgage payable		1,154			1,290
Trade accounts payable		33,488			44,058
Income taxes payable		3,037			2,042
Accrued expenses and derivative liabilities		8,257			2,844
Dividends payable		224			215
Total current liabilities		178,945			158,371
Subordinated convertible debt net of unamortized discount    of $865 and $1,368 respectively		10,135			10,632
Derivative liability for embedded conversion option		3,860			2,048
Deferred taxes payable		49			-
Total Liabilities		192,989			171,051
Commitments (Note 19)
Stockholders' equity:
Common stock $0.01 par value, 20,000,000 shares authorized         and 11,749,651 shares issued         at September 30, 2014 and December 31, 2013		117			117
Additional paid-in capital		13,678			11,937
Retained earnings		39,280			38,178
Accumulated other comprehensive (loss) income		(217	)		51
Treasury stock, 2,773,420 and 3,177,708 shares         at September 30, 2014 and December 31, 2013, respectively		(5,116	)		(5,514	)
Total stockholders' equity		47,742			44,769
Total liabilities and stockholders' equity	$	240,731		$	215,820

See notes to unaudited condensed consolidated financial statements                 

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EMPIRE RESOURCES, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Income (Unaudited)
(In thousands except per share amounts)

	Three Months Ended September 30,					Nine Months  Ended September 30,
	2014			2013 (see note 20)		2014			2013
Net sales	$	159,366		$	126,390	$	444,199		$	370,288
Cost of goods sold		151,897			121,082		423,228			353,083
Gross profit		7,469			5,308		20,971			17,205
Selling, general and administrative expenses		3,819			3,602		10,600			10,361
Operating income		3,650			1,706		10,371			6,844
Interest expense, net		1,041			1,156		3,223			3,403
Income before other expenses		2,609			550		7,148			3,441
Other expenses
Change in value of derivative liability		(2,059	)		1,715		(2,239	)		(452	)
Loss related to extinguishment of debt       converted into common stock		(164	)		-		(164	)		-
Income before income taxes		386			2,265		4,745			2,989
Income taxes		1,080			194		2,985			1,066
Net (loss)/income	$	(694	)	$	2,071	$	1,760		$	1,923
Weighted average shares outstanding:
Basic		8,814			8,586		8,705			8,585
Diluted		8,814			11,835		8,964			8,856
Earnings per share:
Basic	$	(0.08	)	$	0.24	$	0.20		$	0.22
Diluted	$	(0.08	)	$	0.06	$	0.20		$	0.22

See notes to unaudited condensed consolidated financial statements                                

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EMPIRE RESOURCES, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Comprehensive Income (Unaudited)
(In thousands)

	Three Months Ended September 30,						Nine Months  Ended September 30,
	2014			2013 (see note 20)			2014			2013
Net (loss)/income	$	(694	)	$	2,071		$	1,760		$	1,923
Other comprehensive (loss)/income before tax
Foreign currency translation adjustments		(278	)		119			(292	)		81
Decrease in value of interest rate swap      liability		13			13			39			42
Increase in value of marketable securities		-			-			-			32
Other comprehensive (loss)/income before tax		(265	)		132			(253	)		155
Income tax related to components of other     comprehensive (loss)/income		(5	)		(5	)		(15	)		(28	)
Other comprehensive (loss)/income, net of tax		(270	)		127			(268	)		127
Comprehensive (loss) /income	$	(964	)	$	2,198		$	1,492		$	2,050

See notes to unaudited condensed consolidated financial statements                        

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EMPIRE RESOURCES, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows (Unaudited)
(In thousands)

	Nine Months Ended September 30,
	2014			2013
Cash flows - operating activities:
Net income	$	1,760		$	1,923
Adjustments to reconcile net income to net cash (used in)/provided         by operating activities:
Depreciation and amortization		482			518
Change in value of derivative liability		2,239			452
Loss related to extinguishment of debt converted into                   common stock		164			-
Amortization of convertible note discount		419			424
Imputed interest on vendor advance		(144	)		(231	)
Loss on sale of marketable securities		-			32
Amortization of supply agreement		240			240
Deferred income taxes		271			(503	)
Foreign exchange loss/(gain) and other		296			(23	)
Stock-based compensation		630			-
Changes in:
Trade accounts receivable		(45,330	)		(9,932	)
Inventories		18,947			21,708
Other current assets		27			(666	)
Trade accounts payable		(10,751	)		(8,061	)
Income taxes payable		995			(818	)
Accrued expenses and derivative liabilities		5,708			(1,221	)
Net cash  (used in)/provided by operating activities		(24,047	)		3,842
Cash flows - investing activities:
Repayment related to supply agreement		2,500			2,500
Net proceeds from sale of marketable securities		-			6
Purchases of property and equipment		(19	)		(6	)
Net cash provided by investing activities		2,481			2,500
Cash flows - financing activities:
Proceeds from/(repayments) of notes payable – banks		25,602			(6,594	)
Repayments - mortgage payable		(136	)		(127	)
Deferred Financing Costs		(1,005	)		(60	)
Dividends paid		(648	)		(429	)
Proceeds from stock options exercised		15			-
Treasury stock purchased		(13	)		(23	)
Net cash provided by/(used in) financing activities		23,815			(7,233	)
Net increase/(decrease) in cash		2,249			(891	)
Effect of exchange rate		(63	)		1
Cash at beginning of period		2,477			3,136
Cash at end of the period	$	4,663		$	2,246
Supplemental disclosures of cash flow information:
Cash paid during the period for:
Interest	$	3,476		$	2,913
Income taxes	$	2,737		$	1,955
Non cash financing activities:
Dividend declared but not yet paid	$	224		$	215
Treasury stock issued on conversion of subordinated debt	$	1,507			-

See notes to unaudited condensed consolidated financial statements                

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EMPIRE RESOURCES, INC. AND SUBSIDIARIES

Condensed Consolidated Statement of Stockholders’ Equity (Unaudited)

(In thousands, except per share amounts)

	Common Stock Number of Shares		Common Stock  Amount		Additional Paid-in Capital		Retained Earnings			Accumulated Other Comprehensive Income/(Loss)			Treasury Stock			Total Stockholders' Equity
Balance at December 31, 2013		11,750	$	117	$	11,937	$	38,178		$	51		$	(5,514	)	$	44,769
Treasury stock acquired														(13	)		(13	)
Treasury stock issued on conversion of    subordinated debt						1,256								251			1,507
Stock based compensation						475								155			630
Stock options exercised						10								5			15
Net change in cumulative translation    adjustment											(292	)					(292	)
Decrease in value of interest rate swap    liability, net of deferred tax of $15											24						24
Dividends declared ($0.075 per share)								(658	)								(658	)
Net income								1,760									1,760
Balance at September 30, 2014		11,750	$	117	$	13,678	$	39,280		$	(217	)	$	(5,116	)	$	47,742

See notes to unaudited condensed consolidated financial statements

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Empire Resources, Inc. and Subsidiaries.

Notes to Condensed Consolidated Financial Statements (Unaudited)

(In thousands, except for per share amounts)

1. The Company

The condensed consolidated financial statements include the accounts of Empire Resources, Inc. (the “Company”) and its wholly-owned subsidiaries, including Empire Resources Pacific Ltd., the Company’s sales agent in Australia, 6900 Quad Avenue LLC, the owner of a warehouse facility in Baltimore, Maryland and Imbali Metals BVBA (“Imbali”), the Company’s operating subsidiary in Europe and Empire Resources de Mexico, our operating subsidiary in Mexico. All significant inter-company transactions and accounts have been eliminated on consolidation.  The Company purchases and sells semi-finished aluminum and steel products to a diverse customer base located in the Americas, Australia, Europe and New Zealand.

2. Interim Financial Statements

The condensed consolidated interim financial statements included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim reporting. The information and note disclosures normally included in complete financial statements prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. The interim financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2013.

The Company’s management is responsible for interim financial information. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments, which are of a normal and recurring nature, necessary to present fairly the Company’s financial position as of September 30, 2014 and the results of its operations and cash flows for the three and nine months ended September 30, 2014 and 2013. Interim results may not be indicative of the results that may be expected for the year.

3. Use of Estimates

The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period.  Actual results could differ from these estimates.

4. Concentrations

During the nine month period ended September 30, 2014 and 2013 no one customer accounted for 10% or more of our consolidated sales.

The Company purchases metal products from a limited number of suppliers throughout the world. Two suppliers, PT Alumindo Light Metal Industry and Hulamin Ltd. accounted for an aggregate of 39% of total purchases during the nine month period ended September 30, 2014, as compared to 50% during the same period ended September 30, 2013.

The loss of any one of our largest suppliers or a material default by any such supplier in its obligations to us could have a material adverse effect on our business.

5. Stock Options

Stock-based compensation for an award of equity instruments, including stock options, is recognized as an expense over the vesting period based on the fair value of the award at the grant date. As of September 30, 2014, there were outstanding employee stock options to acquire 400 shares of common stock, which had vested in prior years. During the nine month period ended September 30, 2014, the Company did not grant any stock options. Treasury shares were issued for 4 stock options exercised during the nine months ended September 30, 2014.

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6. Treasury Stock

On July 22, 2008, the Board of Directors authorized the Company to repurchase up to 2,000 shares of its common stock. As of September 30, 2014, the Company repurchased a total of 1,268 shares under the repurchase program for an aggregate cost of $3,299. During the nine month period ended September 30, 2014, the Company purchased 3 common shares at a cost of $13. In January 2014 and August 2014, the Company issued a total of 150 common shares out of treasury stock to a non-executive employee as part of a compensation arrangement and in August 2014 issued 254 common shares out of treasury stock on conversion of debt.

7. Inventories

Inventories, which consist of purchased semi-finished metal products, are stated at the lower of cost or market value.  Cost is determined by the specific-identification method. Inventory is purchased for specific customer orders and the Company’s own inventory.  The carrying amount of inventory which is hedged by futures contracts designated as fair value hedges, is adjusted to fair value.

8. Notes Payable—Banks

Prior to June 19, 2014, we were a party to credit agreement with Rabobank International, for itself and as lead arranger and agent, JPMorgan Chase, for itself and as syndication agent, and ABN AMRO, BNP Paribas, RBS Citizens, Société Générale, and Brown Brothers Harriman which provided for a $200,000 revolving line of credit, including a commitment to issue letters of credit and a swing-line loan sub facility, with a maturity date of June 30, 2014.

On June 19, 2014 we entered into an amended and restated committed credit agreement with Rabobank International, for itself and as lead arranger and agent, BNP Paribas, for itself and as syndication agent, and Société Générale, ABN AMRO, RB International, and Brown Brothers Harriman as well as a new uncommitted line of credit with Rabobank International, BNP Paribas and Société Générale. Both credit lines are secured, asset-based credit facilities. The committed credit facility is in the amount of $150,000, and the uncommitted facility is in the amount of $75,000. The agreement also allows for an additional increase in the committed credit facility of $75,000, for a total of $300,000, subject to certain restrictions and conditions. Our borrowings under this line of credit are secured by substantially all of our assets.

Amounts borrowed bear interest at Eurodollar, money market or base rates, at our option, plus an applicable margin.   The credit agreements contains financial and other covenants, including but not limited to, covenants requiring maintenance of minimum tangible net working capital and compliance with leverage ratios, as well as an ownership minimum and limitations on other indebtedness, liens, distributions or dividends, and investments and dispositions of assets.   As of September 30, 2014, the Company was in compliance with all covenants under this credit agreement.

Both credit agreements provide that amounts under the facilities may be borrowed and repaid, and re-borrowed, subject to a borrowing base test. The committed line of credit matures June 19, 2017 and the uncommitted credit agreement must be repaid by the Company on or before June 19, 2015 unless otherwise agreed to.  As of September 30, 2014 and December 31, 2013, the credit utilized amounted to, respectively, $213,835 and $174,605 (including approximately $90,335 and $71,105 of outstanding letters of credit).

Our wholly owned Belgian subsidiary, Imbali, maintains a line of credit with ING Belgium S.A./N.V., for a EUR 8,000 (US$10,106) commitment for loans and documentary letters of credit. Loan advances are limited to a percentage of Imbali’s pledged accounts receivables and inventory and bear interest at EURIBOR plus 1.75%. This secured credit arrangement is unconditionally guaranteed by the Company. As of September 30, 2014, the outstanding loan amounted to EUR 7,350 (US $9,285), as compared to EUR 3,217 (US $4,422) on December 31, 2013. As of September 30, 2014 Imbali was in compliance with all financial covenants.

9. Mortgage Payable

In connection with the purchase of its Baltimore warehouse, the Company entered into a mortgage loan, which had outstanding balances of $1,154 at September 30, 2014 and $1,290 at December 31, 2013. The loan requires monthly payments of approximately $21.6, including interest at LIBOR plus 1.75%, and matures in December 2014.  Under a related interest rate swap, which has been designated as a cash flow hedge and remains effective through the maturity of the mortgage loan, the Company pays a monthly fixed interest rate of 6.37% to the counterparty bank on a notional principal equal to the outstanding principal balance of the mortgage.  In return, the bank pays the Company a floating rate, namely, LIBOR, which resets monthly, plus 1.75% on the same notional principal amount.

- 9 -

10. Convertible Subordinated Debt

On June 3, 2011, the Company issued $12,000 principal amount of 10% Convertible Senior Subordinated Notes Due June 1, 2016 in a private placement to selected accredited investors.  As of September 30, 2014, the notes are convertible at the option of the holders into shares of common stock at a conversion rate of 254.90 shares of common stock per $1,000 principal amount of notes (equivalent to a conversion price of $3.92 per share of common stock), subject to dilutive adjustment for cash and stock dividends, stock splits and similar transactions, at any time before maturity.  The current conversion price reflects fourteen adjustments for dividends declared on the Company’s common stock since the issuance of the notes.  In addition, if the last reported sale price of the Company’s common stock for 30 consecutive trading days is equal to or greater than $7.00, and a registration statement is effective covering the resale of the shares of common stock issuable upon conversion of the notes, the Company has the right, in its sole discretion, to require the holders to convert all or part of their notes at the then applicable conversion rate.  Interest on the notes is payable in arrears on the first day of June and December every year the notes are outstanding. The purchase agreement pursuant to which the notes were issued contains covenants, including restrictions on the Company’s ability to incur certain indebtedness and create certain liens. As of September 30, 2014, the Company was in compliance with all covenants. Officers and directors of the Company and certain affiliated entities purchased $4,000 principal amount of the notes.

On August 18, 2014, a note holder converted $1,000 principal amount of notes into 254 shares of common stock having a fair value on such date of $1,507. The carrying value of the note converted was $916, and the carrying value of the related embedded conversion option was $427 resulting in a loss on extinguishment of the debt of $164.

As a result of transactions which cause adjustments to the conversion rate, the embedded conversion option has been bifurcated and recorded as a separate derivative liability at a fair value at issuance of the notes of $2,829, with a corresponding discount recorded on the notes. The derivative liability is carried at fair value with changes therein recorded in income. The quarterly mark to market of the derivative liability will result in non-operating, non-cash gains or losses based on decreases or increases in the Company’s stock price, respectively, among other factors. The non-cash discount is being amortized as additional interest expense over the term of the notes. During the three and nine month periods ended September 30, 2014, the change in the fair value of the derivative liability resulted in a loss of $2,059 and $2,239, respectively, and amortization of the discount amounted to $136 and $419, respectively. During the three month period ended September 30, 2013, the decrease in the fair value of the derivative liability resulted in a gain of $1,715 and during the nine month period ended September 30, 2013 the increase in the fair value of the derivative liability resulted in a loss of $452. Amortization of the discount amounted to $141 for the three month period and $424 for the nine month period.

The derivative liability was valued using a lattice model using unobservable level 3 inputs. This technique was selected because it embodies all of the types of inputs that the Company expects market participants would consider in determining the fair value of equity linked derivatives embedded in hybrid debt agreements.

The following table summarizes the significant inputs resulting from the calculations as of September 30, 2014, December 31, 2013 and issuance:

	September 30, 2014			December 31, 2013			June 3, 2011
Equity value	$	47,401		$	30,708		$	36,811
Volatility		35	%		45	%		70	%
Risk free return		0.58	%		0.38	%		1.60	%
Dividend yield		1.88	%		2.79	%		2.51	%
Strike price	$	3.92		$	3.99		$	4.65

The majority of the proceeds from the notes were earmarked for a long term advance in connection with a supply agreement with the Indonesian company PT. Alumindo Light Metal Industry Tbk (“PT. Alumindo”), a leading producer of high quality semi-finished aluminum products, and its affiliates, as described below.  The Company provided a $10 million non-interest bearing advance to an affiliate of PT. Alumindo to enable the expansion of capacity within that group of companies’ production network.  Agreements entered into in connection with this loan also provide for a long term, multi-year substantial and preferential supply position from PT. Alumindo's premier aluminum rolling mill located in Surabaya, Indonesia.   The pre-payment advance became repayable to us beginning on January 1, 2013 in monthly installments of $278. As of November 4, 2014, the payments are up to date and current. If the Company and PT. Alumindo are unable to agree on a product price under the supply agreement for any given quarter, the monthly re-payment obligation will increase to $556 and the outstanding balance will accrue interest, at the one month U.S. dollar LIBOR rate plus 3.5% per annum, per month. The entire remaining balance, if any, must be repaid on January 1, 2016. As consideration for this loan, PT. Alumindo agreed to make available a committed and significant tonnage of production to the Company on a guaranteed and long-term basis, which should help the Company lessen the risk of an interruption in the sources of its metal supply from PT. Alumindo’s mill in Surabaya, Indonesia, with which the Company has had substantial experience. The supply agreement calls for increased supply and minimum tonnages.

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Interest at the rate of 3.74%, based on the interest rate chargeable in the agreement in the event the supplier does not meet its supply commitments, has been imputed on the non-interest bearing advance and the resulting discount which amounted to $962 has been ascribed to the preferential supply agreement.  Imputed interest is recorded in income over the term of the advance by use of the interest method. The preferential supply agreement is being amortized by the straight line method over three years starting from January 1, 2013, the date that the increased supply agreement began. During the three and nine month periods ended September 30, 2014 and 2013 amortization amounted to $80 in each three month period and $240 in each nine month period.

11. Earnings per Share

Basic earnings per share are based upon weighted average number of shares of common stock outstanding during each period. Diluted earnings per share are based upon the weighted average number of shares of common stock outstanding during each period, plus potential dilutive shares of common stock from assumed exercise of the outstanding stock options using the treasury stock method and assumed conversion of subordinated debt.

The following table sets forth the computation of basic and diluted earnings per share: 

	Three Months Ended September 30,						Nine Months  Ended September 30,
	2014			2013			2014		2013
Numerator:
Net income	$	(694	)	$	2,071		$	1,760	$	1,923
Add back of interest on convertible subordinated debt, net of taxes					185
Add back of amortization of discount on convertible subordinated debt					141
Adjustment for change in value of convertible    note derivative					(1,715	)
Numerator for diluted earnings per share	$	(694	)	$	682		$	1,760	$	1,923
Denominator:
Weighted average shares outstanding-basic		8,814			8,586			8,705		8,585
Dilutive effect of convertible subordinated debt		-			2,986			-		-
Dilutive effect of stock options		-			263			259		271
Weighted average shares outstanding-diluted		8,814			11,835			8,964		8,856
Basic Earnings per Share	$	(0.08	)	$	0.24		$	0.20	$	0.22
Diluted Earnings per Share	$	(0.08	)	$	0.06		$	0.20	$	0.22

In computing diluted earnings per share for the three and nine months ended September 30, 2014 no effect has been give to the 2,804 common shares issuable upon conversion of subordinated debt as the effect thereof is anti-dilutive. Similarly, for the nine months ended September 30, 2013, no effect has been given to the 2,986, common shares issuable upon conversion of subordinated debt as the effect thereof is anti-dilutive. In addition, no effect has been given to options to acquire 266 common shares in computing diluted earnings per share data for the three month period ended September 30, 2014 as the effect thereof is anti-dilutive.

12. Dividends

On September 19, 2014, our Board of Directors announced a cash dividend of $0.025 per share to stockholders of record at the close of business on September 30, 2014. The dividend totaling $224 was paid on October 15, 2014. On June 18, 2014, our Board of Directors announced a cash dividend of $0.025 per share to stockholders of record at the close of business on July 7, 2014. The dividend totaling $217 was paid on July 18, 2014. On March 25, 2014, our Board of Directors announced a cash dividend of $0.025 per share to stockholders of record at the close of business on April 7, 2014. The dividend, totaling $217, was paid on April 14, 2014. The Board of Directors will review its dividend policy on a quarterly basis, and make a determination subject to the profitability and free cash flow and the other requirements of the business.

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13. Derivative Financial Instruments and Risk Management

The Company uses derivative financial instruments designated as fair value hedges to manage its exposure to commodity price risk and foreign currency exchange risk inherent in its operations. It is the Company’s policy to hedge such risks to the extent practicable. The Company enters into high-grade aluminum futures contracts to limit its gross margin exposure by hedging the metal content element of firmly committed purchase and sales commitments. The Company also enters into foreign exchange forward contracts to hedge its exposure related to commitments to buy and sell metals as well as its accounts receivable denominated in international currencies.

The Company’s unrealized assets and liabilities in respect of its fair value hedges measured at fair value are as follows: 

Derivatives designated    as fair value hedges	Balance Sheet Location	September 30,        2014			December 31, 2013
Asset derivatives:
Aluminum futures contracts	Other current  assets	$	608		$	1,047
Foreign currency forward contracts	Other current  assets		1,143			316
Total		$	1,751		$	1,363
Liability derivatives:
Aluminum futures contracts	Accrued expenses and  derivative liabilities		(157	)		-
Total		$	(157	)	$	-

For the periods ended September 30, 2014 and December 31, 2013, hedge ineffectiveness associated with derivatives designated as fair value hedges was insignificant, and no fair value hedges were derecognized.

The Company has entered into interest rate swaps to convert the mortgage for its Baltimore warehouse from a variable rate to a fixed rate obligation. The swap has been designated as a cash flow hedge and the Company’s unrealized liabilities relating to it measured at fair value are as follows: 

Derivatives designated    as cash flow hedges	Balance Sheet Location	September 30,        2014		December 31, 2013
Liability derivatives:
Interest rate swap contracts	Accrued expenses and derivative  liabilities	$	12	$	52

A corresponding debit, net of deferred taxes, is reflected in accumulated other comprehensive income in the accompanying balance sheets.

The table below summarizes the realized gains or (losses) of the Company’s derivative instruments and their location in the income statement: 

			Three Months Ended September 30,						Nine Months Ended September 30,
Derivatives in hedging    relationships		Location of Gain or   (Loss) Recognized	2014			2013			2014			2013
Foreign currency forward contracts	(a)	Cost of goods sold	$	392		$	(357	)	$	(9	)	$	521
Interest rate swaps	(b)	Interest expense, net		(13	)		(9	)		(41	)		(41	)
Aluminum futures	(c)	Cost of goods sold		(3,399	)		2,329			(1,694	)		5,482
Total			$	(3,020	)	$	1,963		$	(1,744	)	$	5,962

a) Fair value hedge: the related hedged item is accounts receivable and offsetting losses in the three months September 30, 2014 and nine months ended September 30, 2013 are included in cost of goods sold in the same respective amounts. Similarly offsetting gains in the three months September 30, 2013 and nine months ended September 30, 2014 are included in cost of goods sold in the same respective amounts.

b) Cash flow hedge: recognized loss is reclassified from accumulated other comprehensive loss.

c) Fair value hedge: the related hedged item is inventory and offsetting gains in 2014 and losses in 2013 are included in cost of goods sold in the same respective amounts.

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14. Fair Value

Authoritative guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy consists of three broad levels, as described below:

· Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.

· Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

· Level 3 - Inputs that are both significant to the fair value measurement and unobservable.

Derivative contracts consisting of aluminum contracts, foreign currency contracts and interest rates swaps are valued using quoted market prices and significant other observable inputs. These financial instruments are typically exchange-traded and are generally classified within Level 1 or Level 2 of the fair value hierarchy depending on whether the exchange is deemed to be an active market or not.

Major categories of assets and liabilities measured at fair value at September 30, 2014 and December 31, 2013 are classified as follows:

	September 30, 2014						December 31, 2013
	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Assets:
Inventories	$	94,909					$	106,903
Aluminum futures contracts		608						1,047
Foreign currency forward      contracts		1,143						316
Liabilities:
Interest rate swap contracts			$	12					$	52
Aluminum futures contracts		157						-
Embedded conversion option					$	3,860					$	2,048

15. Fair Value of Financial Instruments

The carrying amounts of variable rate notes payable to the banks and the variable rate mortgage payable approximate fair value as of September 30, 2014 and December 31, 2013, because these notes reflect market changes to interest rates. The fair value of the subordinated convertible debt approximates its principal amount of $11,000 at September 30, 2014 and $12,000 at December 31, 2013, which exceeds its carrying amount as a result of the unamortized discount related to the bifurcation of the embedded conversion option. The fair value of the advance to supplier approximates its carrying value. Derivative financial instruments are carried at fair value (see Note 14).

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16. Business Segment and Geographic Area Information

The Company’s only business segment is the sale and distribution of metals. Sales are attributed to countries based on location of customers as follows:

	Three Months Ended September 30,				Nine Months  Ended September 30,
	2014		2013		2014		2013
United States	$	101,907	$	75,667	$	264,604	$	239,818
Latin America		23,995		26,374		81,263		52,336
Canada		10,665		11,932		35,348		36,587
Australia & New Zealand		11,241		8,052		33,647		29,530
Europe		11,558		4,365		29,337		12,017
	$	159,366	$	126,390	$	444,199	$	370,288

17. Accumulated Other Comprehensive Income/(Loss)

Changes in accumulated other comprehensive income/(loss) by component on an after tax basis are as follows:

Three Months ended September 30, 2014	Foreign Currency Translation			Interest Rate Swap  Contract			Total
Beginning balance	$	70		$	(17	)	$	53
Other comprehensive (loss) before reclassification		(278	)		-			(278	)
Loss reclassified to operations		-			8	(a)		8
Net current period other comprehensive (loss)/income		(278	)		8			(270	)
Ending balance	$	(208	)	$	(9	)	$	(217	)
(a) Reclassified to following line items in the statement of income:
Interest expense, net				$	13
Income taxes					(5	)
Net of tax				$	8

Three Months ended September 30, 2013	Foreign Currency Translation			Interest Rate Swap  Contract			Total
Beginning balance	$	(86	)	$	(50	)	$	(136	)
Other comprehensive income before reclassification		119			3			122
Loss reclassified to operations		-			5	(a)		5
Net current period other comprehensive income		119			8			127
Ending balance	$	33		$	(42	)	$	(9	)
(a) Reclassified to following line items in the statement of income:
Interest expense, net				$	9
Income taxes					(4	)
Net of tax				$	5

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Nine months ended September 30, 2014	Foreign Currency Translation			Interest Rate Swap  Contract			Available for Sale Marketable Securities		Total
Beginning balance	$	84		$	(33	)		-	$	51
Other comprehensive (loss) before reclassification		(292	)							(292	)
Loss reclassified to operations		-			24	(a)		-		24
Net current period other comprehensive (loss)/ income		(292	)		24			-		(268	)
Ending balance	$	(208	)	$	(9	)	$	-	$	(217	)
(a) Reclassified to following line items in the statement of income:
Interest expense, net				$	39
Income taxes					(15	)
Net of tax				$	24

Nine months ended September 30, 2013	Foreign Currency Translation			Interest Rate Swap  Contract			Available for Sale Marketable Securities			Total
Beginning balance	$	(48	)	$	(68	)	$	(20	)	$	(136	)
Other comprehensive income before reclassification		81			1			-			82
Loss reclassified to operations		-			25	(a)		20			45
Net current period other comprehensive income		81			26			20			127
Ending balance	$	33		$	(42	)	$	-		$	(9	)
(a) Reclassified to following line items in the statement of income:
Interest expense, net				$	41		$	32
Income taxes					(16	)		(12	)
Net of tax				$	25		$	20

18. Income Taxes

The disproportionate relationship between income taxes and pre-tax income for the three and nine month periods ended September 30, 2014 is primarily attributable to no tax benefit being recognized for the loss from change in value of the derivative liability and the loss related to extinguishment of debt, as such losses will not be deductible for income tax purposes.

19. Commitments

The Company had $90,335 in outstanding letters of credit to certain of its suppliers at September 30, 2014 and $71,105 at December 31, 2013.

20. Restatement

Net income for the three months ended September 30, 2013 has been increased by $600 ($0.07 per share basic and $0.00 per share diluted) from the previously reported amount, to reflect a reduction in the deferred income tax provision attributable to the income from the change in value of the derivative liability. Correspondingly, the net income for the three months ended March 31, 2013 has been decreased by $600 ($0.07 per share, basic and diluted) from the previously reported amount, to reflect an increase in the deferred income tax provision attributable to the loss from change in value of the derivative liability. Additionally, the net income for the three months ended March 31, 2014 has been decreased by $218 ($0.03 per share, basic and diluted) from the previously reported amount. Such adjustments reflect that the loss arising from the change in value of the derivative liability for the first quarter of 2013 and 2014 and the income from the change in value of the derivative liability in the third quarter of 2013 are not recognized for income tax purposes.

Adjusted amounts after restatement are as follows:

	Three months ended
	March 31, 2014			September 30, 2013		March 31, 2013
Net income as previously reported	$	1,026		$	1,471	$	85
Adjustment	$	(218	)	$	600	$	(600	)
Net income/(loss) as restated	$	808		$	2,071	$	(515	)
Earnings/(loss) per share as restated:
Basic	$	0.09		$	0.24	$	(0.06	)
Diluted	$	0.09		$	0.06	$	(0.06	)

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

You should read the following discussion of our financial condition and results of operations in conjunction with the consolidated financial statements and the notes thereto included elsewhere in this Quarterly Report on Form 10-Q and our 10-K filed with the Securities and Exchange Commission on March 31, 2014. All numbers used in this discussion are in thousands, except for per share information and percentages.

Forward-Looking Statements

This Quarterly Report on Form 10-Q contains “forward-looking statements,” which include information relating to future events, future financial performance, strategies, expectations, competitive environment and regulation. Words such as “may,” “should,” “could,” “would,” “predict,” “potential,” “continue,” “expect,” “anticipate,” “future,” “intend,” “plan,” “believe,” “estimate,” and similar expressions, as well as statements in future tense, identify forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results and may not be accurate indications of when such performance or results will be achieved. Forward-looking statements are based on information we have when those statements are made or our management’s good faith belief as of that time with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. Important factors that could cause such differences include, but are not limited to:

· loss or default of one or more suppliers;

· loss or default of one or more significant customers;

· default by the counterparties to our derivative financial instruments;

· changes in general, national or regional economic conditions;

· an act of war or terrorism that disrupts international shipping;

· changes in laws, regulations and tariffs;

· the imposition of anti-dumping duties on the products we import;

· changes in the size and nature of our competition;

· changes in interest rates, foreign currencies or spot prices of aluminum;

· loss of one or more key executives;

· increased credit risk from customers;

· our failure to grow internally or by acquisition; and

· failure to improve operating margins and efficiencies.

For a discussion of these and other risks that relate to our business and investing in shares of our common stock, you should carefully review the risk factors and other cautionary statements in our Annual Report on Form 10-K for the year ended December 31, 2013 that was filed with the Securities and Exchange Commission on March 31, 2014, and those described from time to time in our other reports filed with the Securities and Exchange Commission. The forward-looking statements contained in this Quarterly Report on Form 10-Q are expressly qualified in their entirety by this cautionary statement. We do not undertake any obligation to publicly update any forward-looking statement to reflect events or circumstances after the date on which any such statement is made or to reflect the occurrence of unanticipated events.

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Our Business

We are engaged in the purchase, sale and distribution of semi-finished aluminum and steel products to a diverse customer base located in the Americas, Europe, Australia and New Zealand. We sell our products through our own marketing and sales personnel as well as through commission based independent sales agents located in North America and Europe. We purchase products from suppliers located throughout the world. Our two largest suppliers furnished approximately 39% of our products during the first nine months of 2014 as compared to 50% of our products during the same period in 2013. While we generally place orders with our suppliers based upon orders that we receive from our customers, we also purchase material for our own stock, which we typically use for shorter term deliveries to our customers.

Critical Accounting Policies and Estimates

The following discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements, which have been prepared in accordance with generally accepted accounting principles in the U.S. The preparation of financial statements in accordance with generally accepted accounting principles in the U.S. requires us to make estimates and assumptions that affect the amounts reported in our financial statements. The financial statements include estimates based on currently available information and our judgment as to the outcome of future conditions and circumstances. Significant estimates in these financial statements include allowance for doubtful accounts and the derivative liability for the embedded conversion option in our 10% Convertible Senior Subordinated Notes Due June 1, 2016 in the principal amount of $11,000. Changes in the status of certain facts or circumstances could result in material changes to the estimates used in the preparation of the financial statements and actual results could differ from the estimates and assumptions.

Among the significant judgments made by management in the preparation of our financial statements are the following:

Allowance for Doubtful Accounts

As of September 30, 2014, we had $97,393 in trade receivables, after an allowance for doubtful accounts of $543. We report accounts receivable, net of an allowance for doubtful accounts, to represent our estimate of the amount that ultimately will be realized in cash. We review the adequacy of our allowance for doubtful accounts on an ongoing basis, using historical collection trends, age of receivables, as well as review of specific accounts, and make adjustments in the allowance that we believe are necessary. We maintain a credit insurance policy on the majority of our customers. In general, this policy has a 10% deductible; however there are some instances where the co-insurance may vary and instances where we may exceed the insured values. Changes in economic conditions could have an impact on the collection of existing receivable balances or future allowance considerations. In addition, changes in the credit insurance environment could affect the availability of credit insurance and our ability to secure it.

Accruals for Inventory Claims

Generally, our exposure on claims for defective material is relatively small, as we usually refer all claims on defects back to our suppliers. If we do not believe that a supplier will honor a material claim for a defective product, we will record an allowance for inventory adjustments.

Results of Operations

General

We are engaged in the purchase, sale and distribution of semi-finished aluminum and steel products which we purchase from producing mills around the world.  The market prices of materials we purchase, as well as the market price of materials we sell, fluctuate constantly in world markets.  Our cost of sales is composed of metal content, which in part is determined on world metal exchanges, plus a unique fabrication premium charged by each producer to convert the raw metal to a semi-finished product.  In turn, we typically sell to our customers either on a fixed price basis or based on metal content plus a premium which includes supplier fabrication margin, and costs of importation, warehousing, and delivery of material to customers.  Since metal content costs are the largest component of cost of sales and selling price, our sales pricing trends and cost of sales trends generally track consistently.

- 17 -

Comparison of Three Months Ended September 30, 2014 and 2013

During the three months ended September 30, 2014, net sales increased by $32,976, from $126,390 to $159,366 or 26.1% from the same period in 2013.  This increase was due to improved sales volumes in all geographic regions except for Latin America and Canada, as compared to the same period in 2013.

Gross profit increased by $2,161, to $7,469 during the three months ended September 30, 2014 from $5,308 in the same period of 2013, representing a 40.7% increase, of which $1,385 is attributable to the increased sales and $776 to an improvement in the gross margin of 0.5% to 4.7% from 4.2%. The improvement in margin reflects an increase in spot metal business sold on a just-in-time basis, offset by increases in duty and freight outwards.

Selling, general and administrative expenses during the three months ended September 30, 2014 increased by $217 from $3,602 to $3,819 primarily as a result of sales compensation based on increased sales.

During the three months ended September 30, 2014, interest expense decreased 9.9% or $115 to $1,041 from $1,156 for the same period in 2013 as a result of a lower interest rate environment during the period and reduced interest expense related to the reduction in our convertible debt.  During the three months ended September 30, 2014 and 2013, interest on our 10% Convertible Senior Subordinated Notes Due June 1, 2016 and amortization of the debt discount in connection with these notes totaled $136 for the three months ended September 30, 2014 and $141 for the three months ended September 30, 2013.

During the three months ended September 30, 2014 income before other expenses increased from $550 in the same period of 2013, to $2,609 or 374.4%. This improvement is the result of increased sales, increased gross profit margins, lower interest expense and controlled selling, general and administrative expenses.

Our 10% Convertible Senior Subordinated Notes Due June 1, 2016 have an embedded conversion option which has been bifurcated and recorded as a separate derivative liability at a fair value at issuance of the notes. The derivative liability is carried at fair value with changes in mark to market recorded in income. The changes in the fair value of the derivative liability resulted in a non-cash non-operating loss of $2,059 during the three month period ended September 30, 2014, as compared to a $1,715 non-cash non-operating gain during the same period in 2013. The valuation has numerous inputs, however, these changes are driven primarily by the change in the stock price at the end of both quarters.

Fair value accounting requires changes in derivative liabilities related to our convertible notes to be charged or credited to income during each accounting period. Such losses are not tax deductible, and likewise any recoveries of such losses are not taxable upon recovery. Accordingly, no tax effect was given to the gain of $1,715 and the loss of $2,059 during the quarters ended September 30, 2013 and 2014, respectively. The resultant effective tax rate for the quarter ending September 30, 2013 was 8.6% and 279.8% for the quarter ending September 30, 2014.

Net income decreased from $2,071 to ($694) during the three months ended September 30, 2013 and September 30, 2014, respectively. The decrease of $2,765 includes a swing of $3,774 in the non-cash, non-operating change in value of the derivative liability, offset by our improved operating income of $1,944, plus an increase of $886 in income taxes.

Comparison of Nine Months Ended September 30, 2014 and 2013

During the nine months ended September 30, 2014, net sales increased by $73,911, from $370,288 to $444,199 or 20.0% from the same period in 2013.  This increase was due to increased sales in all regions except Canada, which experienced a $1,239 decrease, during the period ending September 30, 2014 as compared to the same period in 2013.

Gross profit increased by $3,766, to $20,971 during the nine months ended September 30, 2014 from $17,205 in the same period of 2013, representing a 21.9% increase. The dollar increase is primarily attributable to increased sales volume and a slight improvement in the margin percentage from freight savings.

Selling, general and administrative expenses during the nine months ended September 30, 2014 and 2013 increased by 2.3% which is primarily due to increased sales compensation.

- 18 -

During the nine months ended September 30, 2014, interest expense decreased by $180, to $3,223 from $3,403 for the same period in 2013 as a result of a lower interest rate environment during the period and reduced interest expense related to the reduction in our convertible debt. During the nine months ended September 30, 2014 and 2013, interest on our 10% Convertible Senior Subordinated Notes Due June 1, 2016 and amortization of the debt discount in connection with these notes totaled $1,290 for the nine month period ended September 30, 2014 as compared to $1,324 for the nine month period ended September 30, 2013.

During the nine months ended September 30, 2014 income before other expenses increased from $3,441 in the same period of 2013, to $7,148 or 107.7%. This improvement is the result of increased sales, improved gross profit margins, lower interest expense and controlled selling, general and administrative expenses.

Our 10% Convertible Senior Subordinated Notes Due June 1, 2016 has an embedded conversion option which has been bifurcated and recorded as a separate derivative liability at a fair value at issuance of the notes. The derivative liability is carried at fair value with changes in mark to market recorded in income. The mark to market of the derivative liability resulted in non-operating, non-cash losses driven primarily by an increase in the Company’s stock price during the period. The changes in the fair value of the derivative liability resulted in a non-cash non-operating loss of $2,239 during the period ended September 30, 2014, as compared to a $452 non-cash non-operating loss during the same period in 2013.

Fair value accounting requires changes in derivative liabilities related to our convertible notes to be charged or credited to income during each accounting period. Such losses are not tax deductible, and likewise any recoveries of such losses are not taxable upon recovery. Accordingly, no tax effect was given to the loss of $2,239 during the nine month period ended September 30, 2014. The resultant effective tax rate for the nine months ended September 30, 2014 was 62.9%.

Net income decreased from $1,923 during the nine months ended September 30, 2013 to $1,760 during the nine months ended September 30, 2014. The decrease of $163 includes an increase in the loss on the derivative liability of $1,787, offset by improved operating income of $3,707, less an increase of $1,919 in income taxes.

Liquidity and Capital Resources

Overview

At September 30, 2014, we had cash of $4,663, net accounts receivable of $97,393, senior secured debt of $123,500, junior secured debt of $9,285, and subordinated debt of $11,000.  Management believes that cash from operations, together with funds available under our credit facility will be sufficient to fund the cash requirements relating to our existing operations for the next twelve months. However, we will require additional debt or equity financing in connection with the future expansion of our operations.

Comparison of Nine Month Periods Ended September 30, 2014 and 2013

Net cash used in operating activities was $24,047 during the nine months ended September 30, 2014, as compared to net cash provided by operating activities of $3,842 during the same period in 2013. In the nine months ended September 30, 2014 cash used in operating activities resulted from increases in trade accounts receivable of $45,330, decreases in trade accounts payable of $10,751, offset by reduction in inventories of $18,947. We have continued to focus on decreasing inventory and improving inventory turns. However, at this point, we believe that we have likely reduced inventories to prudent levels relative to sales. We focus on our days’ sales outstanding and our inventory turnover rate to manage working capital, because accounts receivable and inventory are the two most significant elements of our working capital.

Our days sales outstanding increased from 46 days in September 2013 to 59 days in September 2014 attributable to continued expansion of sales in Latin America, which has longer payment cycles. Our inventory in warehouses, available for delivery to customers, as of September 30, 2014 was approximately 38 days of sales as compared to 53 days as of the same date in 2013. Our inventory turn rate, including materials in transit, was 4.9 times or 73 days on hand, as of September 30, 2014 as compared to 4.0 times or 90 days on hand as of September 30, 2013. The days payable outstanding was 22 days as of September 30, 2014, one day less than on September 30, 2013.

Cash flows provided by investing activities during the nine months ended September 30, 2014 and 2013, amounted to $2,481 and $2,500 respectively, which is primarily the monthly repayment by PT. Alumindo Light Metal Industry of the advance related to our supply agreement with PT. Alumindo Light Metal Industry.

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Cash flows provided by financing activities during the nine months ended September 30, 2014, amounted to $23,815, as compared to cash flows used in financing activities of $7,233 during the same period in 2013.  During the first nine months of 2014, we funded the increase in accounts receivable of $45,330 with borrowings from our line of credit of $25,602 as well as a reduction in our inventory of $18,947. In addition, we acquired 3 additional common shares at a cost of $13 during the period ended September 30, 2014. We received proceeds of $15 for stock options exercised.

Credit Agreements and Other Debt

We were a party to credit agreement with Rabobank International, for itself and as lead arranger and agent, JPMorgan Chase, for itself and as syndication agent, and ABN AMRO, BNP Paribas, RBS Citizens, Société Générale, and Brown Brothers Harriman which provided for a $200,000 revolving line of credit, including a commitment to issue letters of credit and a swing-line loan sub facility, with a maturity date of June 30, 2014.

On June 19, 2014 we entered into an amended and restated committed credit agreement with Rabobank International, for itself and as lead arranger and agent, BNP Paribas, for itself and as syndication agent, and Société Générale, ABN AMRO, RB International, and Brown Brothers Harriman as well as a new uncommitted line of credit with Rabobank International, BNP Paribas and Société Générale. Both credit lines are secured, asset-based credit facilities. The committed credit facility is in the amount of $150,000, and the uncommitted facility is in the amount of $75,000. The agreement also allows for an additional increase in the committed credit facility of $75,000, for a total of $300,000 subject to certain restrictions and conditions. Our borrowings under this line of credit are secured by substantially all of our assets.

Amounts borrowed bear interest at Eurodollar, money market or base rates, at our option, plus an applicable margin.   The credit agreements contains financial and other covenants, including but not limited to, covenants requiring maintenance of minimum tangible net working capital and compliance with leverage ratios, as well as an ownership minimum and limitations on other indebtedness, liens, distributions or dividends, and investments and dispositions of assets.   As of September 30, 2014, the Company was in compliance with all covenants under this line of credit.

Both credit agreements provide that amounts under the facilities may be borrowed and repaid, and re-borrowed, subject to a borrowing base test. The committed line of credit matures June 19, 2017 and the uncommitted credit agreement must be repaid by the Company on or before June 19, 2015 unless otherwise agreed to.  As of September 30, 2014 and December 31, 2013, the credit utilized amounted to, respectively, $213,835 and $174,605 (including approximately $90,335 and $71,105 of outstanding letters of credit).

Our wholly owned Belgian subsidiary, Imbali, maintains a line of credit with ING Belgium S.A./N.V., for a EUR 8,000 (US$10,106) commitment for loans and documentary letters of credit. Loan advances are limited to a percentage of Imbali’s pledged accounts receivables and inventory and bear interest at EURIBOR plus 1.75%. This secured credit arrangement is unconditionally guaranteed by the Company. As of September 30, 2014, the outstanding loan amounted to EUR 7,350 (US $9,285), as compared to EUR 3,217 (US $4,422) on December 31, 2013. As of September 30, 2014, Imbali was in compliance with all financial covenants.

In addition, we are a party to a mortgage and an interest rate swap that we entered into in 2004 in connection with the purchase of our Baltimore warehouse. The mortgage loan, which had an outstanding balance of $1,154 at September 30, 2014, requires monthly payments of approximately $21.6, including interest at LIBOR plus 1.75%, and matures in December 2014. Under the related interest rate swap, which has been designated as a cash flow hedge and remains effective through the maturity of the mortgage loan, we will pay a monthly fixed interest rate of 6.37% to the counterparty bank on a notional principal equal to the outstanding principal balance of the mortgage. In return, the bank will pay us a floating rate, namely, LIBOR, to reset monthly, plus 1.75% on the same notional principal amount.

On June 3, 2011, we issued $12,000 principal amount of 10% Convertible Senior Subordinated Notes Due June 1, 2016 in a private placement to selected accredited investors. On August 18, 2014, a note holder converted $1,000 of notes into common stock.  The notes are currently convertible at the option of the holders into shares of common stock at a conversion rate of 254.90 shares of common stock per $1 principal amount of notes, subject to adjustment for cash and stock dividends, stock splits and similar transactions, at any time before maturity.  The current conversion price reflects 14 adjustments for dividends.  In addition, if the last reported sale price of the common stock for 30 consecutive trading days is equal to or greater than $7.00, and a registration statement is effective covering the resale of the shares of common stock issuable upon conversion of the notes, we have the right, in our sole discretion, to require the holders to convert all or part of their notes at the then applicable conversion rate.  Interest on the notes is payable in arrears on the first day of June and December every year the notes are outstanding.

- 20 -

Derivative Financial Instruments

Inherent in our business is the risk of matching the timing of our purchase and sales contracts. The prices of the aluminum products we buy and sell are based on a constantly moving terminal market price determined by the London Metal Exchange. Were we not to hedge such exposures, we could be exposed to significant losses due to the continually changing aluminum prices.

We use aluminum futures contracts to manage our exposure to this commodity price risk. It is generally our policy to hedge such risks to the extent practicable. We enter into hedges to limit our exposure to volatile price fluctuations that we believe would impact our gross margins on firm purchase and sales commitments. As an example, if we enter into fixed price contracts with our suppliers and variable priced sales contracts with our customers, we will generally enter into a futures contract to sell the aluminum for future delivery in the month when the aluminum is to be priced and delivered to the customer and repurchase this position once the pricing has been fixed with our customer.  If the underlying metal price increases, we suffer a hedging loss and have a derivative liability, but the sales price to the customer is based on a higher market price and offsets the loss. Conversely, if the metal price decreases, we have a hedging gain and recognize a derivative asset, but the sales price to the customer is based on the lower market price and offsets the gain.

We also enter into foreign exchange forward contracts to hedge our exposure related to commitments to purchase or sell metals and accounts receivable denominated in some international currencies. In such cases, we will purchase or sell the foreign currency through a bank for an approximate date when we anticipate making a payment to a supplier or receiving payment from the foreign customer.

In accordance with generally accepted accounting principles in the U.S., we designate these derivative contracts as fair value hedges and recognize them on our balance sheet at fair value.  We also recognize offsetting changes in the fair value of the related firm purchase and sales commitment to which the hedge is attributable in earnings upon revenue recognition, which occurs at the time of delivery to our customers.

The potential for losses related to our hedging activities, given our hedging methodology, arises from counterparty defaults with banks for our foreign exchange hedging, the London Metal Exchange for our aluminum hedges, or customer defaults. In the event of a customer default, we might be forced to sell the material in the open market and absorb losses for metal or foreign exchange hedges that were applied to the defaulting customers’ transactions. Our results of operations could be materially impacted by any counterparty or customer default, as we might not be able to collect money owed to us and/or our hedge might effectively be cancelled.

We use futures and forward contracts as hedges, for no purpose other than to avoid exposure to changes in aluminum prices and foreign currency rates between when we buy a shipment of aluminum from a supplier and when we deliver it to a customer.  Our derivatives are not for purposes of trading in the futures market. We earn our gross profit margin through our business operations and not from the movement of aluminum prices.

As part of our business we also engage in the purchase, sale and distribution of steel products. If we do not have a matching sales contract related to such products, (for example, any steel products that are unsold in our inventory), we have price risk that we currently do not or are unable to hedge. As such, any decline in pricing for such products may adversely impact our profitability.

Off-Balance Sheet Arrangements

We do not have any off-balance sheet arrangements.

- 21 -

Item 4. Controls and Procedures

Management’s Conclusions Regarding Effectiveness of Disclosure Controls and Procedures

As of September 30, 2014, we conducted an evaluation, under the supervision and participation of management including our chief executive officer and chief financial officer, of the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) and Rule 15d-15(e) of the Securities Exchange Act of 1934, as amended). There are inherent limitations to the effectiveness of any system of disclosure controls and procedures. Accordingly, even effective disclosure controls and procedures can only provide reasonable assurance of achieving their control objectives.

Based upon this evaluation, our chief executive officer and chief financial officer concluded that our disclosure controls and procedures are effective at the reasonable assurance level as of September 30, 2014.

Changes in Internal Control over Financial Reporting

There was no change in our internal control over financial reporting identified in connection with the evaluation required by

Rule 13a-15(d) and 15d-15(d) of the Exchange Act that occurred during the quarter ended September 30, 2014 that has

materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II - OTHER INFORMATION

Item 6. Exhibits

(a) Exhibits

See Index to Exhibits.

- 22 -

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	EMPIRE RESOURCES, INC.
Date: November 14, 2014	By:	/s/ Nathan Kahn
		Name:	Nathan Kahn
		Title:	President and Chief Executive Officer
			(Principal Executive Officer)
	By:	/s/ Sandra Kahn
		Name:	Sandra Kahn
		Title:	Vice President and Chief Financial Officer
			(Principal Financial Officer)

- 23 -

EXHIBIT INDEX

Exhibit No.	Description
3.1	Amended and Restated Certificate of Incorporation (Incorporated by reference to Exhibit 3.1 to the Company’s Registration Statement on Form S-1, No. 333- 179245, filed January 30, 2012)
3.2	Certificate of Amendment of Amended and Restated Certificate of Incorporation (Amendment No. 1) (Incorporated by reference to Exhibit 3.2 to the Company’s Registration Statement on Form S-1, No. 333-179245, filed January 30, 2012)
3.3	Certificate of Amendment of the Amended and Restated Certificate of Incorporation (Amendment No. 2) (Incorporated by reference to Exhibit 3.3 to the Company’s Registration Statement on Form S-1, No. 333-179245, filed January 30, 2012)
3.4	Amended and Restated By-Laws (Incorporated by reference to Exhibit 3.4 to the Company’s Registration Statement on Form S-1, No. 333-179245, filed January 30, 2012)
3.5	Amendment No. 1 to Amended and Restated By-Laws (Incorporated by reference to Exhibit 3.5 to the Company’s Registration Statement on Form S-1, No. 333-179245, filed January 30, 2012)
3.6	Amendment No. 2 to Amended and Restated By-Laws (Incorporated by reference to Exhibit 3.6 to the Company’s Registration Statement on Form S-1, No. 333-179245, filed January 30, 2012)
10.1	Amended and Restated Credit Agreement dated as of June 19, 2014, by and among Empire Resources, Inc., Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A., “Rabobank Nederland”, New York Branch, as agent for the Banks, each of the Banks, and BNP Paribas, as syndication agent (Incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K, filed June 25, 2014).
10.2	Uncommitted Credit Agreement dated as of June 19, 2014, by and among Empire Resources, Inc., Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A., “Rabobank Nederland”, New York Branch, as agent for the Banks, each of the Banks, and BNP Paribas, as syndication agent (Incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K, filed June 25, 2014).
10.3	Amended and Restated Security Agreement dated as of June 19, 2014,  by and among Empire Resources, Inc., and each Guarantor, in favor of Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A., “Rabobank Nederland”, New York Branch, as agent for each of the Secured Parties (Incorporated by reference to Exhibit 10.3 to the Company’s Current Report on Form 8-K, filed June 25, 2014).
10.4	Security Agreement dated as of June 19, 2014,  by and among Empire Resources, Inc., and each Guarantor, in favor of Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A., “Rabobank Nederland”, New York Branch, as agent for each of the Secured Parties (Incorporated by reference to Exhibit 10.4 to the Company’s Current Report on Form 8-K, filed June 25, 2014).
10.5	Intercreditor Agreement dated as of June 19, 2014, by and between Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A., “Rabobank Nederland”, New York Branch, in its capacity as collateral agent for the Committed Lenders, and Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A., “Rabobank Nederland”, New York Branch, in its capacity as collateral agent for the Uncommitted Lenders (Incorporated by reference to Exhibit 10.5 to the Company’s Current Report on Form 8-K, filed June 25, 2014).

- 24 -

31.1*	Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2*	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1*	Certification of Principal Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2*	Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101	The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended  September 30, 2014, formatted in XBRL (eXtensible Business Reporting Language), (i)Condensed Consolidated Balance Sheets, (ii) Condensed Consolidated Statements of Comprehensive Income, (iii) Condensed Consolidated Statements of Cash Flows, (iv) Condensed Consolidated Statements of Stockholders’ Equity, and (v) the Notes to the Condensed Consolidated Financial Statements

*           Filed herewith.

- 25 -

EX-31.1

EXHIBIT 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Nathan Kahn, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Empire Resources, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

November 14, 2014	/s/Nathan Kahn
	Nathan Kahn
	President and Chief Executive Officer (Principal Executive Officer)

EX-31.2

EXHIBIT 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Sandra Kahn, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Empire Resources, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

November 14, 2014	/s/Sandra Kahn
	Sandra Kahn
	Vice President and Chief Financial Officer (Principal Financial Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

This certification is furnished solely pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350) and accompanies the Quarterly Report on Form 10-Q (the “Form 10-Q”) for the quarter ended September 30, 2014 of Empire Resources, Inc. (the “Company”). I, Nathan Kahn, the President, Chief Executive Officer and Principal Executive Officer of the Company, certify that, based on my knowledge:

(1) The Form 10-Q fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company as of and for the periods covered in this report.

Date: November 14, 2014	By:	/s/ Nathan Kahn
	Name:	Nathan Kahn
	Title:	President and Chief Executive Officer (Principal Executive Officer)

The foregoing certification is being furnished as an exhibit to the Form 10-Q pursuant to Item 601(b)(32) of Regulation S-K and Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code) and, accordingly, is not being filed as part of the Form 10-Q for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

EX-32.2

Exhibit 32.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

This certification is furnished solely pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350) and accompanies the Quarterly Report on Form 10-Q (the “Form 10-Q”) for the quarter ended September 30, 2014 of Empire Resources, Inc. (the “Company”). I, Sandra Kahn, the Vice President, Chief Financial Officer and Principal Financial Officer of the Company, certify that, based on my knowledge:

(1) The Form 10-Q fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company as of and for the periods covered in this report.

Date: November 14, 2014	By:	/s/ Sandra Kahn
	Name:	Sandra Kahn
	Title:	Vice President and Chief Financial Officer (Principal Financial Officer)

The foregoing certification is being furnished as an exhibit to the Form 10-Q pursuant to Item 601(b)(32) of Regulation S-K and Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code) and, accordingly, is not being filed as part of the Form 10-Q for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

XML

Notes Payable - Banks (Details Textual) In Thousands, unless otherwise specified	9 Months Ended					1 Months Ended
	Sep. 30, 2014 USD ($)	Sep. 30, 2014 EUR (€)	Jun. 19, 2014 USD ($)	Dec. 31, 2013 USD ($)	Dec. 31, 2013 EUR (€)	Jun. 19, 2014 Rabobank International [Member] USD ($)
Line of Credit Facility [Line Items]
Line of Credit Facility, Fair Value of Amount Outstanding	$ 9,285	€ 7,350		$ 4,422	€ 3,217
Line of Credit Facility, Amount Outstanding	90,335		200,000	71,105		300,000
Line Of Credit Facility, Amount Utilized	213,835			174,605
Line of Credit Facility, Commitment Fee Amount	10,106	8,000
Line Of Credit Facility, Interest Rate, Variable Rate Basis	EURIBOR plus 1.75%	EURIBOR plus 1.75%
Line of Credit Facility, Maximum Borrowing Capacity						150,000
Line of Credit Facility, Remaining Borrowing Capacity						75,000
Line of Credit Facility, Increase (Decrease), Other, Net						$ 75,000

XML

Commitments (Details Textual) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Letters of Credit Outstanding, Amount	$ 90,335	$ 71,105

XML

Derivative Financial Instruments and Risk Management (Details 2) (USD $) In Thousands, unless otherwise specified	3 Months Ended				9 Months Ended
	Sep. 30, 2014		Sep. 30, 2013		Sep. 30, 2014		Sep. 30, 2013
Derivative Financial Instruments and Risk Management [Line Items]
Derivative, Gain (Loss) on Derivative, Net, Total	$ (3,020)		$ 1,963		$ (1,744)		$ 5,962
Foreign currency forward contracts [Member] | Cost of goods sold [Member]
Derivative Financial Instruments and Risk Management [Line Items]
Derivative, Gain (Loss) on Derivative, Net, Total	392	[1]	(357)	[1]	(9)	[1]	521	[1]
Interest rate swaps [Member] | Interest expense, net [Member]
Derivative Financial Instruments and Risk Management [Line Items]
Derivative, Gain (Loss) on Derivative, Net, Total	(13)	[2]	(9)	[2]	(41)	[2]	(41)	[2]
Aluminum futures [Member] | Cost of goods sold [Member]
Derivative Financial Instruments and Risk Management [Line Items]
Derivative, Gain (Loss) on Derivative, Net, Total	$ (3,399)	[3]	$ 2,329	[3]	$ (1,694)	[3]	$ 5,482	[3]

[1] Fair value hedge: the related hedged item is accounts receivable and offsetting losses in the three months September 30, 2014 and nine months ended September 30, 2013 are included in cost of goods sold in the same respective amounts. Similarly offsetting gains in the three months September 30, 2013 and nine months ended September 30, 2014 are included in cost of goods sold in the same respective amounts.

[2] Cash flow hedge: recognized loss is reclassified from accumulated other comprehensive loss.

[3] Fair value hedge: the related hedged item is inventory and offsetting gains in 2014 and losses in 2013 are included in cost of goods sold in the same respective amounts.

XML

Restatement (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended				9 Months Ended
	Sep. 30, 2014	Mar. 31, 2014	Sep. 30, 2013	Mar. 31, 2013	Sep. 30, 2014	Sep. 30, 2013
Net Income (Loss) Attributable To Parent	$ (694)	$ 808	$ 2,071	$ (515)	$ 1,760	$ 1,923
Impact of Restatement on Earnings Per Share [Abstract]
Impact of Restatement on Earnings Per Share, Basic (in per shares)		$ 0.09	$ 0.24	$ (0.06)
Impact of Restatement on Earnings Per Share, Diluted (in per share)		$ 0.09	$ 0.06	$ (0.06)
Scenario, Previously Reported [Member]
Net Income (Loss) Attributable To Parent		1,026	1,471	85
Scenario, Adjustment [Member]
Net Income (Loss) Attributable To Parent		$ (218)	$ 600	$ (600)

XML

Derivative Financial Instruments and Risk Management (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Derivative Financial Instruments and Risk Management [Line Items]
Fair Value Hedge Assets	$ 1,751	$ 1,363
Fair Value Hedge Liabilities	(157)	0
Other Current Assets [Member] | Aluminum Futures Contracts [Member]
Derivative Financial Instruments and Risk Management [Line Items]
Fair Value Hedge Assets	608	1,047
Other Current Assets [Member] | Foreign currency forward contracts [Member]
Derivative Financial Instruments and Risk Management [Line Items]
Fair Value Hedge Assets	1,143	316
Accrued Expenses and Derivative Liabilities [Member] | Aluminum Futures Contracts [Member]
Derivative Financial Instruments and Risk Management [Line Items]
Fair Value Hedge Liabilities	$ (157)	$ 0

XML

Business Segment and Geographic Area Information (Tables)

9 Months Ended

Sep. 30, 2014

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

The Company’s only business segment is the sale and distribution of metals. Sales are attributed to countries based on location of customers as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2014		2013		2014		2013
United States	$	101,907	$	75,667	$	264,604	$	239,818
Latin America		23,995		26,374		81,263		52,336
Canada		10,665		11,932		35,348		36,587
Australia & New Zealand		11,241		8,052		33,647		29,530
Europe		11,558		4,365		29,337		12,017
	$	159,366	$	126,390	$	444,199	$	370,288

XML

Accumulated Other Comprehensive Income/(Loss)

9 Months Ended

Sep. 30, 2014

Stockholders' Equity Note [Abstract]

Comprehensive Income (Loss) Note [Text Block]

17. Accumulated Other Comprehensive Income/(Loss)

Changes in accumulated other comprehensive income/(loss) by component on an after tax basis are as follows:

	Foreign
	Currency
Three Months ended September 30, 2014	Translation		Interest Rate Swap Contract			Total
Beginning balance	$	70	$	(17)		$	53
Other comprehensive (loss) before reclassification		(278)		-			(278)
Loss reclassified to operations		-		8	(a)		8
Net current period other comprehensive (loss)/income		(278)		8			(270)
Ending balance	$	(208)	$	(9)		$	(217)
(a) Reclassified to following line items in the statement of income:
Interest expense, net			$	13
Income taxes				(5)
Net of tax			$	8

	Foreign
	Currency
Three Months ended September 30, 2013	Translation		Interest Rate Swap Contract			Total
Beginning balance	$	(86)	$	(50)		$	(136)
Other comprehensive income before reclassification		119		3			122
Loss reclassified to operations		-		5	(a)		5
Net current period other comprehensive income		119		8			127
Ending balance	$	33	$	(42)		$	(9)
(a) Reclassified to following line items in the statement of income:
Interest expense, net			$	9
Income taxes				(4)
Net of tax			$	5

	Foreign
	Currency					Available for Sale
Nine months ended September 30, 2014	Translation		Interest Rate Swap Contract			Marketable Securities		Total
Beginning balance	$	84	$	(33)			-	$	51
Other comprehensive (loss) before reclassification		(292)							(292)
Loss reclassified to operations		-		24	(a)		-		24
Net current period other comprehensive (loss)/ income		(292)		24			-		(268)
Ending balance	$	(208)	$	(9)		$	-	$	(217)
(a) Reclassified to following line items in the statement of income:
Interest expense, net			$	39
Income taxes				(15)
Net of tax			$	24

	Foreign
	Currency
Nine months ended September 30, 2013	Translation		Interest Rate Swap Contract			Available for Sale Marketable Securities		Total
Beginning balance	$	(48)	$	(68)		$	(20)	$	(136)
Other comprehensive income before reclassification		81		1			-		82
Loss reclassified to operations		-		25	(a)		20		45
Net current period other comprehensive income		81		26			20		127
Ending balance	$	33	$	(42)		$	-	$	(9)
(a) Reclassified to following line items in the statement of income:
Interest expense, net			$	41		$	32
Income taxes				(16)			(12)
Net of tax			$	25		$	20

XML

Fair Value of Financial Instruments (Details Textual) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Debt Instrument, Fair Value Disclosure	$ 11,000	$ 12,000

XML

Convertible Subordinated Debt (Details Textual) (USD $)	1 Months Ended	3 Months Ended		9 Months Ended				0 Months Ended		1 Months Ended	9 Months Ended	12 Months Ended	9 Months Ended
	Aug. 18, 2014	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Aug. 18, 2014 Embedded Derivative Financial Instruments [Member]	Aug. 18, 2014 Common Stock [Member]	Nov. 04, 2014 Subsequent Event [Member]	Sep. 30, 2014 Pt Alumindo [Member]	Aug. 18, 2014 Convertible Senior Subordinated Notes [Member]	Sep. 30, 2014 Convertible Senior Subordinated Notes [Member]	Jun. 03, 2011 Convertible Senior Subordinated Notes [Member]	Sep. 30, 2014 Supply Agreement With Pt. Alumindo [Member]
Convertible Subordinated Debt [Line Items]
Debt Instrument, Interest Rate During Period												10.00%
Debt Instrument, Convertible, Conversion Price		$ 3.92		$ 3.92							$ 7.00
Convertible Subordinated Debt		$ 4,000,000		$ 4,000,000			$ 1,000,000
Derivative Liability, Fair Value, Amount Not Offset Against Collateral, Total											2,829,000
Unrealized Gain (Loss) on Derivatives		2,059,000	1,751,000	2,239,000	452,000
Accounts Payable, Interest-bearing		962,000		962,000
Debt Instrument, Convertible, Conversion Ratio										254	254.90
Related Party Loan Monthly Instalment													278,000
Related Party Loan Monthly Installment Upon Disagreement		136,000	141,000	419,000	424,000			556,000
Related Party Loan Interest Rate Basis Upon Disagreement				3.74%				3.50%
Amortization Of Intangible Assets		80,000	80,000	240,000	240,000							12,000,000
Due from Affiliates									10,000,000
Debt Instrument, Convertible, Beneficial Conversion Feature											1,000,000
Convertible Subordinated Debt		4,000,000		4,000,000			1,000,000
Debt Instrument, Convertible, Carrying Amount of Equity Component	916,000					427,000
Stock Issued During Period, Value, Conversion of Convertible Securities, Net of Adjustments	1,507,000			1,507,000	0
Gains (Losses) on Extinguishment of Debt	$ 164,000	$ (164,000)	$ 0	$ (164,000)	$ 0

XML

Stock Options (Details Textual) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number	400
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period	4

XML

Accumulated Other Comprehensive Income/(Loss) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance, Foreign currency translation	$ 70	$ (86)	$ 84	$ (48)
Other comprehensive income/(loss) before reclassification, Foreign Currency Translation	(278)	119	(292)	81
Loss reclassified to operations, Foreign Currency Translation	0	0	0	0
Net current period other comprehensive (loss)/ income, Foreign Currency Translation	(278)	119	(292)	81
Ending Balance, Foreign Currency Translation	(208)	33	(208)	33
Beginning Balance, Interest Rate Swap Contract	(17)	(50)	(33)	(68)
Other comprehensive income/(loss) before reclassification, Interest Rate Swap Contract	0	3		1
Loss reclassified to operations, Interest Rate Swap Contract	8	5	24	25
Net current period other comprehensive (loss)/ income, Interest Rate Swap Contract	8	8	24	26
Ending Balance, Interest Rate Swap Contract	(9)	(42)	(9)	(42)
Beginning Balance, Available for Sale Marketable Securities			0	(20)
Other comprehensive income/(loss) before reclassification, Available for Sale Marketable Securities				0
Loss reclassified to operations, Available for Sale Marketable Securities			0	20
Net current period other comprehensive (loss)/ income, Available for Sale Marketable Securities			0	20
Ending Balance, Available for Sale Marketable Securities	0	0	0	0
Beginning Balance	53	(136)	51	(136)
Other comprehensive income/(loss) before reclassification	(278)	122	(292)	82
Loss reclassified to operations	8	5	24	45
Net current period other comprehensive (loss)/ income	(270)	127	(268)	127
Ending Balance	$ (217)	$ (9)	$ (217)	$ (9)

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Derivative Financial Instruments and Risk Management (Details 1) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Derivative Financial Instruments and Risk Management [Line Items]
Interest rate swap contracts	$ 12	$ 52

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The Company

9 Months Ended

Sep. 30, 2014

Organization, Consolidation and Presentation Of Financial Statements [Abstract]

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

1. The Company

The condensed consolidated financial statements include the accounts of Empire Resources, Inc. (the “Company”) and its wholly-owned subsidiaries, including Empire Resources Pacific Ltd., the Company’s sales agent in Australia, 6900 Quad Avenue LLC, the owner of a warehouse facility in Baltimore, Maryland and Imbali Metals BVBA (“Imbali”), the Company’s operating subsidiary in Europe and Empire Resources de Mexico, our operating subsidiary in Mexico. All significant inter-company transactions and accounts have been eliminated on consolidation.  The Company purchases and sells semi-finished aluminum and steel products to a diverse customer base located in the Americas, Australia, Europe and New Zealand.

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Earnings per Share (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Numerator:
Net income	$ (694)	$ 2,071	$ 1,760	$ 1,923
Add back of interest on convertible subordinated debt, net of taxes	0	185	0	0
Add back of amortization of discount on convertible subordinated debt	0	141	0	0
Adjustment for change in value of convertible note derivative	0	(1,715)	0	0
Numerator for diluted earnings per share	$ (694)	$ 682	$ 1,760	$ 1,923
Denominator:
Weighted average shares outstanding-basic (in shares)	8,814	8,586	8,705	8,585
Dilutive effect of convertible subordinated debt (in shares)	0	2,986	0	0
Dilutive effect of stock option (in shares)	0	263	259	271
Weighted average shares outstanding-diluted (in shares)	8,814	11,835	8,964	8,856
Basic Earnings per Share (in dollars per share)	$ (0.08)	$ 0.24	$ 0.20	$ 0.22
Diluted Earnings per Share (in dollars per share)	$ (0.08)	$ 0.06	$ 0.20	$ 0.22

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Convertible Subordinated Debt (Tables)

9 Months Ended

Sep. 30, 2014

Debt Disclosure [Abstract]

Fair Value, by Balance Sheet Grouping [Table Text Block]

The following table summarizes the significant inputs resulting from the calculations as of September 30, 2014, December 31, 2013 and issuance:

	September 30, 2014			December 31, 2013			June 3, 2011
Equity value	$	47,401		$	30,708		$	36,811
Volatility		35	%		45	%		70	%
Risk free return		0.58	%		0.38	%		1.60	%
Dividend yield		1.88	%		2.79	%		2.51	%
Strike price	$	3.92		$	3.99		$	4.65

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Restatement

9 Months Ended

Sep. 30, 2014

Restatement [Abstract]

Restatement [Text Block]

20. Restatement

Net income for the three months ended September 30, 2013 has been increased by $600 ($0.07 per share basic and $-0.00 per share diluted) from the previously reported amount, to reflect a reduction in the deferred income tax provision attributable to the income from the change in value of the derivative liability. Correspondingly, the net income for the three months ended March 31, 2013 has been decreased by $600 ($0.07 per share,basic and diluted) from the previously reported amount, to reflect an increase in the deferred income tax provision attributable to the loss from change in value of the derivative liability. Additionally, the net income for the three months ended March 31, 2014 has been decreased by $218 ($0.03 per share,basic and diluted) from the previously reported amount. Such adjustments reflect that the loss arising from the change in value of the derivative liability for the first quarter of 2013 and 2014 and the income from the change in value of the derivative liability in the third quarter of 2013 are not recognized for income tax purposes.

Adjusted amounts after restatement are as follows:

	Three months ended
	March 31, 2014		September 30, 2013		March 31, 2013
Net income as previously reported	$	1,026	$	1,471	$	85
Adjustment	$	(218)	$	600	$	(600)
Net income/(loss) as restated	$	808	$	2,071	$	(515)
Earnings/(loss) per share as restated:
Basic	$	0.09	$	0.24	$	(0.06)
Diluted	$	0.09	$	0.06	$	(0.06)

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Restatement (Details Textual) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended				9 Months Ended
	Sep. 30, 2014	Mar. 31, 2014	Sep. 30, 2013	Mar. 31, 2013	Sep. 30, 2014	Sep. 30, 2013
Net Income (Loss) Attributable To Parent	$ (694)	$ 808	$ 2,071	$ (515)	$ 1,760	$ 1,923
Impact of Restatement on Earnings Per Share, Basic		$ 0.09	$ 0.24	$ (0.06)
Impact of Restatement on Earnings Per Share, Diluted		$ 0.09	$ 0.06	$ (0.06)
Impact Of Restatement On Earnings PerShare Basic And Diluted		$ 0.03		$ 0.07
Scenario, Adjustment [Member]
Net Income (Loss) Attributable To Parent		$ (218)	$ 600	$ (600)

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Earnings per Share (Details Textual) In Thousands, unless otherwise specified	3 Months Ended	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2014
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	2,804	2,986
Stock Issued During Period, Shares, Acquisitions	266

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Earnings per Share (Tables)

9 Months Ended

Sep. 30, 2014

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

The following table sets forth the computation of basic and diluted earnings per share:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2014		2013		2014		2013
Numerator:
Net income	$	(694)	$	2,071	$	1,760	$	1,923
Add back of interest on convertible subordinated debt, net of taxes				185
Add back of amortization of discount on convertible subordinated debt				141
Adjustment for change in value of convertible note derivative				(1,715)
Numerator for diluted earnings per share	$	(694)	$	682	$	1,760	$	1,923
Denominator:
Weighted average shares outstanding-basic		8,814		8,586		8,705		8,585
Dilutive effect of convertible subordinated debt		-		2,986		-		-
Dilutive effect of stock options		-		263		259		271
Weighted average shares outstanding-diluted		8,814		11,835		8,964		8,856
Basic Earnings per Share	$	(0.08)	$	0.24	$	0.20	$	0.22
Diluted Earnings per Share	$	(0.08)	$	0.06	$	0.20	$	0.22

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Derivative Financial Instruments and Risk Management (Tables)

9 Months Ended

Sep. 30, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block]

The Company’s unrealized assets and liabilities in respect of its fair value hedges measured at fair value are as follows:

Derivatives designated		September 30,		December 31,
as fair value hedges	Balance Sheet Location	2014		2013
Asset derivatives:
Aluminum futures contracts	Other current assets	$	608	$	1,047
Foreign currency forward contracts	Other current assets		1,143		316
Total		$	1,751	$	1,363
Liability derivatives:
Aluminum futures contracts	Accrued expenses and derivative liabilities		(157)		-
Total		$	(157)	$	-

Schedule Of Derivatives Designated As Fair Value Hedges [Table Text Block]

The Company has entered into interest rate swaps to convert the mortgage for its Baltimore warehouse from a variable rate to a fixed rate obligation. The swap has been designated as a cash flow hedge and the Company’s unrealized liabilities relating to it measured at fair value are as follows:

Derivatives designated		September 30,		December 31,
as cash flow hedges	Balance Sheet Location	2014		2013
Liability derivatives:
Interest rate swap contracts	Accrued expenses and derivative liabilities	$	12	$	52

Schedule Of Derivatives Designated As Cash Flow Hedges [Table Text Block]

The table below summarizes the realized gains or (losses) of the Company’s derivative instruments and their location in the income statement:

			Three Months Ended				Nine Months Ended
Derivatives in hedging		Location of Gain or	September 30,				September 30,
relationships		(Loss) Recognized	2014		2013		2014		2013
Foreign currency forward contracts	(a)	Cost of goods sold	$	392	$	(357)	$	(9)	$	521
Interest rate swaps	(b)	Interest expense, net		(13)		(9)		(41)		(41)
Aluminum futures	(c)	Cost of goods sold		(3,399)		2,329		(1,694)		5,482
Total			$	(3,020)	$	1,963	$	(1,744)	$	5,962

a) Fair value hedge: the related hedged item is accounts receivable and offsetting losses in the three months September 30, 2014 and nine months ended September 30, 2013 are included in cost of goods sold in the same respective amounts.  Similarly offsetting gains in the three months September 30, 2013 and nine months ended September 30, 2014 are included in cost of goods sold in the same respective amounts.

b) Cash flow hedge: recognized loss is reclassified from accumulated other comprehensive loss.

c) Fair value hedge: the related hedged item is inventory and offsetting gains in 2014 and losses in 2013 are included in cost of goods sold in the same respective amounts.

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Condensed Consolidated Statement of Stockholders' Equity [Parenthetical] (USD $) In Thousands, except Per Share data, unless otherwise specified	9 Months Ended
	Sep. 30, 2014
Decrease in value of interest rate swap liability, net of deferred tax	$ 15
Dividends declared	$ 0.075

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Fair Value (Tables)

9 Months Ended

Sep. 30, 2014

Fair Value Disclosures [Abstract]

Fair Value Measurements, Recurring and Nonrecurring [Table Text Block]

Major categories of assets and liabilities measured at fair value at September 30, 2014 and December 31, 2013 are classified as follows:

	September 30, 2014						December 31, 2013
	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Assets:
Inventories	$	94,909					$	106,903
Aluminum futures contracts		608						1,047
Foreign currency forward    contracts		1,143						316
Liabilities:
Interest rate swap contracts			$	12					$	52
Aluminum futures contracts		157						-
Embedded conversion option					$	3,860					$	2,048

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Mortgage Payable (Details Textual) (Mortgage Loans [Member], USD $)	9 Months Ended
	Sep. 30, 2014	Dec. 31, 2013
Mortgage Loans [Member]
Mortgage Loans on Real Estate [Line Items]
Debt Instrument, Periodic Payment	$ 21,600
Loans Receivable, Description of Variable Rate Basis	LIBOR plus 1.75%
Debt Instrument, Interest Rate, Stated Percentage	6.37%
Debt Instrument, Face Amount	$ 1,154,000	$ 1,290,000
Debt Instrument, Maturity Date	Dec. 31, 2014

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Accumulated Other Comprehensive Income/(Loss) (Details 1) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
(a) Reclassified to following line items in the statement of income:
Income taxes	$ 1,080	$ 194	$ 2,985	$ 1,066
Net of tax	8	5	24	45
Interest Rate Swap [Member]
(a) Reclassified to following line items in the statement of income:
Interest expense, net	13	9	39	41
Income taxes	(5)	(4)	(15)	(16)
Net of tax	8	5	24	25
Available-for-sale Securities [Member]
(a) Reclassified to following line items in the statement of income:
Interest expense, net				32
Income taxes				(12)
Net of tax				$ 20

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Condensed Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Current assets:
Cash	$ 4,663	$ 2,477
Trade accounts receivable (less allowance for doubtful accounts of $543 and $562)	97,393	52,696
Inventories	120,104	139,752
Deferred tax assets	3,194	3,217
Advance to supplier, net of imputed interest of $87 and $176	3,236	3,147
Other current assets, including derivatives	6,051	6,081
Total current assets	234,641	207,370
Advance to supplier, net of imputed interest of $3 and $56, and net of current maturities	841	3,287
Preferential supply agreement, net	401	641
Long-term financing costs, net of amortization	962	358
Property and equipment, net	3,886	3,949
Deferred tax assets	0	215
Total assets	240,731	215,820
Current liabilities:
Notes payable - banks	132,785	107,922
Current maturities of mortgage payable	1,154	1,290
Trade accounts payable	33,488	44,058
Income taxes payable	3,037	2,042
Accrued expenses and derivative liabilities	8,257	2,844
Dividends payable	224	215
Total current liabilities	178,945	158,371
Subordinated convertible debt net of unamortized discount of $865 and $1,368 respectively	10,135	10,632
Derivative liability for embedded conversion option	3,860	2,048
Deferred taxes payable	49	0
Total Liabilities	192,989	171,051
Commitments (Note 19)
Stockholders' equity:
Common stock $0.01 par value, 20,000,000 shares authorized and 11,749,651 shares issued at September 30, 2014 and December 31, 2013	117	117
Additional paid-in capital	13,678	11,937
Retained earnings	39,280	38,178
Accumulated other comprehensive (loss) income	(217)	51
Treasury stock, 2,773,420 and 3,177,708 shares at September 30, 2014 and December 31, 2013, respectively	(5,116)	(5,514)
Total stockholders' equity	47,742	44,769
Total liabilities and stockholders' equity	$ 240,731	$ 215,820

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Dividends (Details Textual) (USD $) In Thousands, except Per Share data, unless otherwise specified	1 Months Ended			0 Months Ended	1 Months Ended	9 Months Ended		0 Months Ended
	Sep. 19, 2014	Jul. 18, 2014	Jun. 18, 2014	Apr. 14, 2014	Mar. 25, 2014	Sep. 30, 2014	Sep. 30, 2013	Oct. 15, 2014 Subsequent Event [Member]
Dividends Payable [Line Items]
Common Stock, Dividends, Per Share, Cash Paid	$ 0.025		$ 0.025		$ 0.025
Payments of Dividends, Total		$ 217		$ 217		$ 648	$ 429	$ 224

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Condensed Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Cash flows - operating activities:
Net income	$ 1,760	$ 1,923
Adjustments to reconcile net income to net cash (used in)/provided by operating activities:
Depreciation and amortization	482	518
Change in value of derivative liability	2,239	452
Loss related to extinguishment of debt converted into common stock	164	0
Amortization of convertible note discount	419	424
Imputed interest on vendor advance	(144)	(231)
Loss on sale of marketable securities	0	32
Amortization of supply agreement	240	240
Deferred income taxes	271	(503)
Foreign exchange loss and other	296	(23)
Stock-based compensation	630	0
Changes in:
Trade accounts receivable	(45,330)	(9,932)
Inventories	18,947	21,708
Other current assets	27	(666)
Trade accounts payable	(10,751)	(8,061)
Income taxes payable	995	(818)
Accrued expenses and derivative liabilities	5,708	(1,221)
Net cash (used in)/provided by operating activities	(24,047)	3,842
Cash flows - investing activities:
Repayment related to supply agreement	2,500	2,500
Net proceeds from sale of marketable securities	0	6
Purchases of property and equipment	(19)	(6)
Net cash provided by investing activities	2,481	2,500
Cash flows - financing activities:
Proceeds from/(repayments) of notes payable - banks	25,602	(6,594)
Repayments - mortgage payable	(136)	(127)
Deferred Financing Costs	(1,005)	(60)
Dividends paid	(648)	(429)
Proceeds from stock options exercised	15	0
Treasury stock purchased	(13)	(23)
Net cash provided by/(used in) financing activities	23,815	(7,233)
Net increase/(decrease) in cash	2,249	(891)
Effect of exchange rate	(63)	1
Cash at beginning of period	2,477	3,136
Cash at end of the period	4,663	2,246
Supplemental disclosures of cash flow information:
Interest	3,476	2,913
Income taxes	2,737	1,955
Non cash financing activities:
Dividend declared but not yet paid	224	215
Treasury stock issued on conversion of subordinated debt	$ 1,507	$ 0

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Restatement (Tables)

9 Months Ended

Sep. 30, 2014

Restatement [Abstract]

Restatement To Prior Year Income [Table Text Block]

Adjusted amounts after restatement are as follows:

	Three months ended
	March 31, 2014		September 30, 2013		March 31, 2013
Net income as previously reported	$	1,026	$	1,471	$	85
Adjustment	$	(218)	$	600	$	(600)
Net income/(loss) as restated	$	808	$	2,071	$	(515)
Earnings/(loss) per share as restated:
Basic	$	0.09	$	0.24	$	(0.06)
Diluted	$	0.09	$	0.06	$	(0.06)

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Fair Value

9 Months Ended

Sep. 30, 2014

Fair Value Disclosures [Abstract]

Fair Value Disclosures [Text Block]

14. Fair Value

Authoritative guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy consists of three broad levels, as described below:

⋅ Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.

⋅ Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

⋅ Level 3 - Inputs that are both significant to the fair value measurement and unobservable.

Derivative contracts consisting of aluminum contracts, foreign currency contracts and interest rates swaps are valued using quoted market prices and significant other observable inputs. These financial instruments are typically exchange-traded and are generally classified within Level 1 or Level 2 of the fair value hierarchy depending on whether the exchange is deemed to be an active market or not.

Major categories of assets and liabilities measured at fair value at September 30, 2014 and December 31, 2013 are classified as follows:

	September 30, 2014						December 31, 2013
	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Assets:
Inventories	$	94,909					$	106,903
Aluminum futures contracts		608						1,047
Foreign currency forward    contracts		1,143						316
Liabilities:
Interest rate swap contracts			$	12					$	52
Aluminum futures contracts		157						-
Embedded conversion option					$	3,860					$	2,048

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Concentrations (Details Textual)	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Sales Revenue, Goods, Net [Member]
Concentration Risk, Percentage	10.00%	10.00%
Cost Of Goods, Total [Member]
Concentration Risk, Percentage	39.00%	50.00%

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Business Segment and Geographic Area Information

9 Months Ended

Sep. 30, 2014

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

16. Business Segment and Geographic Area Information

The Company’s only business segment is the sale and distribution of metals. Sales are attributed to countries based on location of customers as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2014		2013		2014		2013
United States	$	101,907	$	75,667	$	264,604	$	239,818
Latin America		23,995		26,374		81,263		52,336
Canada		10,665		11,932		35,348		36,587
Australia & New Zealand		11,241		8,052		33,647		29,530
Europe		11,558		4,365		29,337		12,017
	$	159,366	$	126,390	$	444,199	$	370,288

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Condensed Consolidated Statement of Stockholders' Equity (USD $) In Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income/(Loss) [Member]	Treasury Stock [Member]
Balance at Dec. 31, 2013	$ 44,769	$ 117	$ 11,937	$ 38,178	$ 51	$ (5,514)
Balance (in shares) at Dec. 31, 2013		11,750
Treasury stock acquired	(13)					(13)
Treasury stock issued on conversion of subordinated debt	1,507		1,256			251
Stock based compensation	630		475			155
Stock options exercised	15		10			5
Net change in cumulative translation adjustment	(292)				(292)
Decrease in value of interest rate swap liability, net of deferred tax of $15	24				24
Dividends declared ($0.075 per share)	(658)			(658)
Net income	1,760			1,760
Balance at Sep. 30, 2014	$ 47,742	$ 117	$ 13,678	$ 39,280	$ (217)	$ (5,116)
Balance (in shares) at Sep. 30, 2014		11,750

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Condensed Consolidated Balance Sheets [Parenthetical] (USD $) In Thousands, except Share data, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Allowance for doubtful accounts, trade accounts	$ 543	$ 562
Imputed interest, advance to supplier amortization amount, current	87	176
Imputed interest, advance to supplier amortization amount	3	56
Unamortized discount, subordinated convertible debt	$ 865	$ 1,368
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized (in shares)	20,000,000	20,000,000
Common stock, issued (in shares)	11,749,651	11,749,651
Treasury stock (in shares)	2,773,420	3,177,708

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Mortgage Payable

9 Months Ended

Sep. 30, 2014

Debt Disclosure [Abstract]

Mortgage Notes Payable Disclosure [Text Block]

9. Mortgage Payable

In connection with the purchase of its Baltimore warehouse, the Company entered into a mortgage loan, which had outstanding balances of $1,154 at September 30, 2014 and $1,290 at December 31, 2013. The loan requires monthly payments of approximately $21.6, including interest at LIBOR plus 1.75%, and matures in December 2014.  Under a related interest rate swap, which has been designated as a cash flow hedge and remains effective through the maturity of the mortgage loan, the Company pays a monthly fixed interest rate of 6.37% to the counterparty bank on a notional principal equal to the outstanding principal balance of the mortgage.  In return, the bank pays the Company a floating rate, namely, LIBOR, which resets monthly, plus 1.75% on the same notional principal amount.

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Document And Entity Information	9 Months Ended
	Sep. 30, 2014	Nov. 11, 2014
Document Information [Line Items]
Entity Registrant Name	EMPIRE RESOURCES INC /NEW/
Entity Central Index Key	0001019272
Entity Filer Category	Smaller Reporting Company
Trading Symbol	ERS
Entity Common Stock, Shares Outstanding		8,976,231
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2014
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2014

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Convertible Subordinated Debt

9 Months Ended

Sep. 30, 2014

Debt Disclosure [Abstract]

Subordinated Borrowings Disclosure [Text Block]

10. Convertible Subordinated Debt

On June 3, 2011, the Company issued $12,000 principal amount of 10% Convertible Senior Subordinated Notes Due June 1, 2016 in a private placement to selected accredited investors.  As of September 30, 2014, the notes are convertible at the option of the holders into shares of common stock at a conversion rate of 254.90 shares of common stock per $1,000 principal amount of notes (equivalent to a conversion price of $3.92 per share of common stock), subject to dilutive adjustment for cash and stock dividends, stock splits and similar transactions, at any time before maturity.  The current conversion price reflects fourteen adjustments for dividends declared on the Company’s common stock since the issuance of the notes.  In addition, if the last reported sale price of the Company’s common stock for 30 consecutive trading days is equal to or greater than $7.00, and a registration statement is effective covering the resale of the shares of common stock issuable upon conversion of the notes, the Company has the right, in its sole discretion, to require the holders to convert all or part of their notes at the then applicable conversion rate.  Interest on the notes is payable in arrears on the first day of June and December every year the notes are outstanding. The purchase agreement pursuant to which the notes were issued contains covenants, including restrictions on the Company’s ability to incur certain indebtedness and create certain liens. As of September 30, 2014, the Company was in compliance with all covenants. Officers and directors of the Company and certain affiliated entities purchased $4,000 principal amount of the notes. 

On August 18, 2014, a note holder converted $1,000 principal amount of notes into 254 shares of common stock having a fair value on such date of $1,507. The carrying value of the note converted was $916, and the carrying value of the related embedded conversion option was $427 resulting in a loss on extinguishment of the debt of $164.

As a result of transactions which cause adjustments to the conversion rate, the embedded conversion option has been bifurcated and recorded as a separate derivative liability at a fair value at issuance of the notes of $2,829, with a corresponding discount recorded on the notes. The derivative liability is carried at fair value with changes therein recorded in income. The quarterly mark to market of the derivative liability will result in non-operating, non-cash gains or losses based on decreases or increases in the Company’s stock price, respectively, among other factors. The non-cash discount is being amortized as additional interest expense over the term of the notes. During the three and nine month periods ended September 30, 2014, the change in the fair value of the derivative liability resulted in a loss of $2,059 and $2,239, respectively, and amortization of the discount amounted to $136 and $419, respectively. During the three month period ended September 30, 2013, the decrease in the fair value of the derivative liability resulted in a gain of $1,715 and during the nine month period ended September 30, 2013 the increase in the fair value of the derivative liability resulted in a loss of $452. Amortization of the discount amounted to $141 for the three month period and $424 for the nine month period.

The derivative liability was valued using a lattice model using unobservable level 3 inputs. This technique was selected because it embodies all of the types of inputs that the Company expects market participants would consider in determining the fair value of equity linked derivatives embedded in hybrid debt agreements.

The following table summarizes the significant inputs resulting from the calculations as of September 30, 2014, December 31, 2013 and issuance:

	September 30, 2014			December 31, 2013			June 3, 2011
Equity value	$	47,401		$	30,708		$	36,811
Volatility		35	%		45	%		70	%
Risk free return		0.58	%		0.38	%		1.60	%
Dividend yield		1.88	%		2.79	%		2.51	%
Strike price	$	3.92		$	3.99		$	4.65

The majority of the proceeds from the notes were earmarked for a long term advance in connection with a supply agreement with the Indonesian company PT. Alumindo Light Metal Industry Tbk (“PT. Alumindo”), a leading producer of high quality semi-finished aluminum products, and its affiliates, as described below.  The Company provided a $10 million non-interest bearing advance to an affiliate of PT. Alumindo to enable the expansion of capacity within that group of companies’ production network.  Agreements entered into in connection with this loan also provide for a long term, multi-year substantial and preferential supply position from PT. Alumindo's premier aluminum rolling mill located in Surabaya, Indonesia.   The pre-payment advance became repayable to us beginning on January 1, 2013 in monthly installments of $278. As of November 4, 2014, the payments are up to date and current. If the Company and PT. Alumindo are unable to agree on a product price under the supply agreement for any given quarter, the monthly re-payment obligation will increase to $556 and the outstanding balance will accrue interest, at the one month U.S. dollar LIBOR rate plus 3.5% per annum, per month. The entire remaining balance, if any, must be repaid on January 1, 2016. As consideration for this loan, PT. Alumindo agreed to make available a committed and significant tonnage of production to the Company on a guaranteed and long-term basis, which should help the Company lessen the risk of an interruption in the sources of its metal supply from PT. Alumindo’s mill in Surabaya, Indonesia, with which the Company has had substantial experience. The supply agreement calls for increased supply and minimum tonnages.

Interest at the rate of 3.74%, based on the interest rate chargeable in the agreement in the event the supplier does not meet its supply commitments, has been imputed on the non-interest bearing advance and the resulting discount which amounted to $962 has been ascribed to the preferential supply agreement.  Imputed interest is recorded in income over the term of the advance by use of the interest method. The preferential supply agreement is being amortized by the straight line method over three years starting from January 1, 2013, the date that the increased supply agreement began. During the three and nine month periods ended September 30, 2014 and 2013 amortization amounted to $80 in each three month period and $240 in each nine month period.

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Condensed Consolidated Statements of Income (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Net sales	$ 159,366	$ 126,390	$ 444,199	$ 370,288
Cost of goods sold	151,897	121,082	423,228	353,083
Gross profit	7,469	5,308	20,971	17,205
Selling, general and administrative expenses	3,819	3,602	10,600	10,361
Operating income	3,650	1,706	10,371	6,844
Interest expense, net	1,041	1,156	3,223	3,403
Income before other expenses	2,609	550	7,148	3,441
Other expenses
Change in value of derivative liability	(2,059)	1,715	(2,239)	(452)
Loss related to extinguishment of debt converted into common stock	(164)	0	(164)	0
Income before income taxes	386	2,265	4,745	2,989
Income taxes	1,080	194	2,985	1,066
Net (loss)/income	$ (694)	$ 2,071	$ 1,760	$ 1,923
Weighted average shares outstanding:
Basic (in shares)	8,814	8,586	8,705	8,585
Diluted (in shares)	8,814	11,835	8,964	8,856
Earnings per share:
Basic (in dollars per share)	$ (0.08)	$ 0.24	$ 0.20	$ 0.22
Diluted (in dollars per share)	$ (0.08)	$ 0.06	$ 0.20	$ 0.22

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Concentrations

9 Months Ended

Sep. 30, 2014

Risks and Uncertainties [Abstract]

Concentration Risk Disclosure [Text Block]

4. Concentrations

During the nine month period ended September 30, 2014 and 2013 no one customer accounted for 10% or more of our consolidated sales.

The Company purchases metal products from a limited number of suppliers throughout the world. Two suppliers, PT Alumindo Light Metal Industry and Hulamin Ltd. accounted for an aggregate of 39% of total purchases during the nine month period ended September 30, 2014, as compared to 50% during the same period ended September 30, 2013.

The loss of any one of our largest suppliers or a material default by any such supplier in its obligations to us could have a material adverse effect on our business.

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Use of Estimates

9 Months Ended

Sep. 30, 2014

Use Of Estimates [Abstract]

Use Of Estimates [Text Block]

3. Use of Estimates

The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period.  Actual results could differ from these estimates.

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Fair Value of Financial Instruments

9 Months Ended

Sep. 30, 2014

Investments, All Other Investments [Abstract]

Financial Instruments Disclosure [Text Block]

15. Fair Value of Financial Instruments

The carrying amounts of variable rate notes payable to the banks and the variable rate mortgage payable approximate fair value as of September 30, 2014 and December 31, 2013, because these notes reflect market changes to interest rates. The fair value of the subordinated convertible debt approximates its principal amount of $11,000 at September 30, 2014 and $12,000 at December 31, 2013, which exceeds its carrying amount as a result of the unamortized discount related to the bifurcation of the embedded conversion option. The fair value of the advance to supplier approximates its carrying value. Derivative financial instruments are carried at fair value (see Note 14).

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Earnings per Share

9 Months Ended

Sep. 30, 2014

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

11. Earnings per Share

Basic earnings per share are based upon weighted average number of shares of common stock outstanding during each period. Diluted earnings per share are based upon the weighted average number of shares of common stock outstanding during each period, plus potential dilutive shares of common stock from assumed exercise of the outstanding stock options using the treasury stock method and assumed conversion of subordinated debt.

The following table sets forth the computation of basic and diluted earnings per share:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2014		2013		2014		2013
Numerator:
Net income	$	(694)	$	2,071	$	1,760	$	1,923
Add back of interest on convertible subordinated debt, net of taxes				185
Add back of amortization of discount on convertible subordinated debt				141
Adjustment for change in value of convertible note derivative				(1,715)
Numerator for diluted earnings per share	$	(694)	$	682	$	1,760	$	1,923
Denominator:
Weighted average shares outstanding-basic		8,814		8,586		8,705		8,585
Dilutive effect of convertible subordinated debt		-		2,986		-		-
Dilutive effect of stock options		-		263		259		271
Weighted average shares outstanding-diluted		8,814		11,835		8,964		8,856
Basic Earnings per Share	$	(0.08)	$	0.24	$	0.20	$	0.22
Diluted Earnings per Share	$	(0.08)	$	0.06	$	0.20	$	0.22

In computing diluted earnings per share for the three and nine months ended September 30, 2014 no effect has been give to the 2,804 common shares issuable upon conversion of subordinated debt as the effect thereof is anti-dilutive. Similarly, for the nine months ended September 30, 2013, no effect has been given to the 2,986, common shares issuable upon conversion of subordinated debt as the effect thereof is anti-dilutive. In addition, no effect has been given to options to acquire 266 common shares in computing diluted earnings per share data for the three month period ended September 30, 2014 as the effect thereof is anti-dilutive.

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Inventories

9 Months Ended

Sep. 30, 2014

Inventory Disclosure [Abstract]

Inventory Disclosure [Text Block]

7. Inventories

Inventories, which consist of purchased semi-finished metal products, are stated at the lower of cost or market value.  Cost is determined by the specific-identification method. Inventory is purchased for specific customer orders and the Company’s own inventory.  The carrying amount of inventory, which is hedged by futures contracts designated as fair value hedges, is adjusted to fair value.

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Stock Options

9 Months Ended

Sep. 30, 2014

Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

5. Stock Options

Stock-based compensation for an award of equity instruments, including stock options, is recognized as an expense over the vesting period based on the fair value of the award at the grant date. As of September 30, 2014, there were outstanding employee stock options to acquire 400 shares of common stock, which had vested in prior years. During the nine month period ended September 30, 2014, the Company did not grant any stock options. Treasury shares were issued for 4 stock options exercised during the nine months ended September 30, 2014.

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Treasury Stock

9 Months Ended

Sep. 30, 2014

Equity [Abstract]

Treasury Stock [Text Block]

6. Treasury Stock

On July 22, 2008, the Board of Directors authorized the Company to repurchase up to 2,000 shares of its common stock. As of September 30, 2014, the Company repurchased a total of 1,268 shares under the repurchase program for an aggregate cost of $3,299. During the nine month period ended September 30, 2014, the Company purchased 3 common shares at a cost of $13. In January 2014 and August 2014, the Company issued a total of 150 common shares out of treasury stock to a non-executive employee as part of a compensation arrangement, and in August 2014 issued 254 common shares out of treasury stock on conversion of debt

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Notes Payable - Banks

9 Months Ended

Sep. 30, 2014

Debt Disclosure [Abstract]

Long-term Debt [Text Block]

8. Notes Payable—Banks

Prior to June 19, 2014, we were a party to credit agreement with Rabobank International, for itself and as lead arranger and agent, JPMorgan Chase, for itself and as syndication agent, and ABN AMRO, BNP Paribas, RBS Citizens, Société Générale, and Brown Brothers Harriman which provided for a $200,000 revolving line of credit, including a commitment to issue letters of credit and a swing-line loan sub facility, with a maturity date of June 30, 2014.

On June 19, 2014 we entered into an amended and restated committed credit agreement with Rabobank International, for itself and as lead arranger and agent, BNP Paribas, for itself and as syndication agent, and Société Générale, ABN AMRO, RB International, and Brown Brothers Harriman as well as a new uncommitted line of credit with Rabobank International, BNP Paribas and Société Générale. Both credit lines are secured, asset-based credit facilities. The committed credit facility is in the amount of $150,000, and the uncommitted facility is in the amount of $75,000. The agreement also allows for an additional increase in the committed credit facility of $75,000, for a total of $300,000, subject to certain restrictions and conditions. Our borrowings under this line of credit are secured by substantially all of our assets.

Amounts borrowed bear interest at Eurodollar, money market or base rates, at our option, plus an applicable margin.   The credit agreements contains financial and other covenants, including but not limited to, covenants requiring maintenance of minimum tangible net working capital and compliance with leverage ratios, as well as an ownership minimum and limitations on other indebtedness, liens, distributions or dividends, and investments and dispositions of assets.   As of September 30, 2014, the Company was in compliance with all covenants under this credit agreement.

Both credit agreements provide that amounts under the facilities may be borrowed and repaid, and re-borrowed, subject to a borrowing base test. The committed line of credit matures June 19, 2017 and the uncommitted credit agreement must be repaid by the Company on or before June 19, 2015 unless otherwise agreed to.  As of September 30, 2014 and December 31, 2013, the credit utilized amounted to, respectively, $213,835 and $174,605 (including approximately $90,335 and $71,105 of outstanding letters of credit).

Our wholly owned Belgian subsidiary, Imbali, maintains a line of credit with ING Belgium S.A./N.V., for a EUR 8,000 (US$10,106) commitment for loans and documentary letters of credit. Loan advances are limited to a percentage of Imbali’s pledged accounts receivables and inventory and bear interest at EURIBOR plus 1.75%. This secured credit arrangement is unconditionally guaranteed by the Company. As of September 30, 2014, the outstanding loan amounted to EUR 7,350 (US $9,285), as compared to EUR 3,217 (US $4,422) on December 31, 2013. As of September 30, 2014 Imbali was in compliance with all financial covenants.

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Accumulated Other Comprehensive Income/(Loss) (Tables)

9 Months Ended

Sep. 30, 2014

Stockholders' Equity Note [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

Changes in accumulated other comprehensive income/(loss)  by component on an after tax basis are as follows:

Three Months ended September 30, 2014	Foreign  Currency  Translation			Interest Rate Swap  Contract			Total
Beginning balance	$	70		$	(17	)	$	53
Other comprehensive (loss) before reclassification		(278	)		-			(278	)
Loss reclassified to operations		-			8	(a)		8
Net current period other comprehensive (loss)/income		(278	)		8			(270	)
Ending balance	$	(208	)	$	(9	)	$	(217	)

Three Months ended September 30, 2013	Foreign  Currency  Translation			Interest Rate Swap  Contract			Total
Beginning balance	$	(86	)	$	(50	)	$	(136	)
Other comprehensive income before reclassification		119			3			122
Loss reclassified to operations		-			5	(a)		5
Net current period other comprehensive income		119			8			127
Ending balance	$	33		$	(42	)	$	(9	)

Nine months ended September 30, 2014	Foreign  Currency  Translation			Interest Rate Swap  Contract			Available for Sale  Marketable Securities		Total
Beginning balance	$	84		$	(33	)		-	$	51
Other comprehensive (loss) before reclassification		(292	)							(292	)
Loss reclassified to operations		-			24	(a)		-		24
Net current period other comprehensive (loss)/ income		(292	)		24			-		(268	)
Ending balance	$	(208	)	$	(9	)	$	-	$	(217	)

Nine months ended September 30, 2013	Foreign Currency Translation			Interest Rate Swap  Contract			Available for Sale Marketable Securities			Total
Beginning balance	$	(48	)	$	(68	)	$	(20	)	$	(136	)
Other comprehensive income before reclassification		81			1			-			82
Loss reclassified to operations		-			25	(a)		20			45
Net current period other comprehensive income		81			26			20			127
Ending balance	$	33		$	(42	)	$	-		$	(9	)

Reclassification out of Accumulated Other Comprehensive Income [Table Text Block]

(a) Reclassified to following line items in the statement of income:
Interest expense, net	$	13
Income taxes		(5)
Net of tax	$	8
(a) Reclassified to following line items in the statement of income:
Interest expense, net	$	9
Income taxes		(4)
Net of tax	$	5
(a) Reclassified to following line items in the statement of income:
Interest expense, net	$	39
Income taxes		(15)
Net of tax	$	24
(a) Reclassified to following line items in the statement of income:
Interest expense, net	$	41	$	32
Income taxes		(16)		(12)
Net of tax	$	25	$	20

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Business Segment and Geographic Area Information (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Segment Reporting Information [Line Items]
Other Revenue, Net	$ 159,366	$ 126,390	$ 444,199	$ 370,288
United States [Member]
Segment Reporting Information [Line Items]
Other Revenue, Net	101,907	75,667	264,604	239,818
Latin America [Member]
Segment Reporting Information [Line Items]
Other Revenue, Net	23,995	26,374	81,263	52,336
Canada [Member]
Segment Reporting Information [Line Items]
Other Revenue, Net	10,665	11,932	35,348	36,587
Australia and New Zealand [Member]
Segment Reporting Information [Line Items]
Other Revenue, Net	11,241	8,052	33,647	29,530
Europe [Member]
Segment Reporting Information [Line Items]
Other Revenue, Net	$ 11,558	$ 4,365	$ 29,337	$ 12,017

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Derivative Financial Instruments and Risk Management

9 Months Ended

Sep. 30, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities Disclosure [Text Block]

13. Derivative Financial Instruments and Risk Management

The Company uses derivative financial instruments designated as fair value hedges to manage its exposure to commodity price risk and foreign currency exchange risk inherent in its operations. It is the Company’s policy to hedge such risks to the extent practicable. The Company enters into high-grade aluminum futures contracts to limit its gross margin exposure by hedging the metal content element of firmly committed purchase and sales commitments. The Company also enters into foreign exchange forward contracts to hedge its exposure related to commitments to buy and sell metals as well as its accounts receivable denominated in international currencies.

The Company’s unrealized assets and liabilities in respect of its fair value hedges measured at fair value are as follows:

Derivatives designated		September 30,		December 31,
as fair value hedges	Balance Sheet Location	2014		2013
Asset derivatives:
Aluminum futures contracts	Other current assets	$	608	$	1,047
Foreign currency forward contracts	Other current assets		1,143		316
Total		$	1,751	$	1,363
Liability derivatives:
Aluminum futures contracts	Accrued expenses and derivative liabilities		(157)		-
Total		$	(157)	$	-

For the periods ended September 30, 2014 and December 31, 2013, hedge ineffectiveness associated with derivatives designated as fair value hedges was insignificant, and no fair value hedges were derecognized.

The Company has entered into interest rate swaps to convert the mortgage for its Baltimore warehouse from a variable rate to a fixed rate obligation. The swap has been designated as a cash flow hedge and the Company’s unrealized liabilities relating to it measured at fair value are as follows:

Derivatives designated		September 30,		December 31,
as cash flow hedges	Balance Sheet Location	2014		2013
Liability derivatives:
Interest rate swap contracts	Accrued expenses and derivative liabilities	$	12	$	52

A corresponding debit, net of deferred taxes, is reflected in accumulated other comprehensive income in the accompanying balance sheets.

The table below summarizes the realized gains or (losses) of the Company’s derivative instruments and their location in the income statement:

			Three Months Ended				Nine Months Ended
Derivatives in hedging		Location of Gain or	September 30,				September 30,
relationships		(Loss) Recognized	2014		2013		2014		2013
Foreign currency forward contracts	(a)	Cost of goods sold	$	392	$	(357)	$	(9)	$	521
Interest rate swaps	(b)	Interest expense, net		(13)		(9)		(41)		(41)
Aluminum futures	(c)	Cost of goods sold		(3,399)		2,329		(1,694)		5,482
Total			$	(3,020)	$	1,963	$	(1,744)	$	5,962

a) Fair value hedge: the related hedged item is accounts receivable and offsetting losses in the three months September 30, 2014 and nine months ended September 30, 2013 are included in cost of goods sold in the same respective amounts.  Similarly offsetting gains in the three months September 30, 2013 and nine months ended September 30, 2014 are included in cost of goods sold in the same respective amounts.

b) Cash flow hedge: recognized loss is reclassified from accumulated other comprehensive loss.

c) Fair value hedge: the related hedged item is inventory and offsetting gains in 2014 and losses in 2013 are included in cost of goods sold in the same respective amounts.

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Income Taxes

9 Months Ended

Sep. 30, 2014

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

18. Income Taxes

The disproportionate relationship between income taxes and pre-tax income for the three and nine month periods ended September 30, 2014 is primarily attributable to no tax benefit being recognized for the loss from change in value of the derivative liability and the loss related to extinguishment of debt, as such losses will not be deductible for income tax purposes.

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Fair Value (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Fair Value, Inputs, Level 1 [Member] | Inventories [Member]
Assets, Fair Value Disclosure	$ 94,909	$ 106,903
Fair Value, Inputs, Level 1 [Member] | Aluminum Futures Contracts [Member]
Assets, Fair Value Disclosure	608	1,047
Liabilities, Fair Value Disclosure	157	0
Fair Value, Inputs, Level 1 [Member] | Foreign Currency Forward Contracts [Member]
Assets, Fair Value Disclosure	1,143	316
Fair Value, Inputs, Level 2 [Member] | Interest Rate Swap [Member]
Liabilities, Fair Value Disclosure	12	52
Fair Value, Inputs, Level 3 [Member] | Embedded Conversion Option [Member]
Liabilities, Fair Value Disclosure	$ 3,860	$ 2,048

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Convertible Subordinated Debt (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	0 Months Ended	9 Months Ended	12 Months Ended
	Jun. 03, 2011	Sep. 30, 2014	Dec. 31, 2013
Equity value	$ 36,811	$ 47,401	$ 30,708
Volatility	70.00%	35.00%	45.00%
Risk free return	1.60%	0.58%	0.38%
Dividend Yield	2.51%	1.88%	2.79%
Strike Price	$ 4.65	$ 3.92	$ 3.99

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Condensed Consolidated Statements of Comprehensive Income (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Net (loss)/income	$ (694)	$ 2,071	$ 1,760	$ 1,923
Other comprehensive (loss)/income before tax
Foreign currency translation adjustments	(278)	119	(292)	81
Decrease in value of interest rate swap liability	13	13	39	42
Increase in value of marketable securities	0	0	0	32
Other comprehensive (loss)/income before tax	(265)	132	(253)	155
Income tax related to components of other comprehensive (loss)/income	(5)	(5)	(15)	(28)
Other comprehensive (loss)/income, net of tax	(270)	127	(268)	127
Comprehensive (loss) /income	$ (964)	$ 2,198	$ 1,492	$ 2,050

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Interim Financial Statements

9 Months Ended

Sep. 30, 2014

Organization, Consolidation and Presentation Of Financial Statements [Abstract]

Condensed Financial Statements [Text Block]

2. Interim Financial Statements

The condensed consolidated interim financial statements included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim reporting. The information and note disclosures normally included in complete financial statements prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. The interim financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2013.

The Company’s management is responsible for interim financial information. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments which are of a normal and recurring nature, necessary to present fairly the Company’s financial position as of September 30, 2014 and the results of its operations and cash flows for the three and nine months ended September 30, 2014 and 2013. Interim results may not be indicative of the results that may be expected for the year.

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Commitments

9 Months Ended

Sep. 30, 2014

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

19. Commitments

The Company had $90,335 in outstanding letters of credit to certain of its suppliers at September 30, 2014 and $71,105 at December 31, 2013.

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Treasury Stock (Details Textual) (USD $) In Thousands, except Share data, unless otherwise specified	9 Months Ended
	Sep. 30, 2014	Jul. 22, 2008
Equity, Class of Treasury Stock [Line Items]
Stock Repurchase Program, Number of Shares Authorized to be Repurchased		2,000,000
Treasury stock acquired	$ 13
Stock Repurchased During Period, Shares	3,000
Stock Repurchased During Period, Value	13
Stock Issued During Period, Shares, Treasury Stock Reissued	150,000
Convertible Senior Subordinated Notes [Member]
Equity, Class of Treasury Stock [Line Items]
Debt Conversion, Converted Instrument, Shares Issued	254
Repurchase One [Member]
Equity, Class of Treasury Stock [Line Items]
Treasury stock acquired	$ 3,299
Treasury Stock Shares Acquired Cost Method	1,268,000

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Dividends

9 Months Ended

Sep. 30, 2014

Notes To Financial Statements [Abstract]

Dividend Disclosure [Text Block]

12. Dividends

On September 19, 2014, our Board of Directors announced a cash dividend of $0.025 per share to stockholders of record at the close of business on September 30, 2014. The dividend totaling $224 was paid on October 15, 2014. On June 18, 2014, our Board of Directors announced a cash dividend of $0.025 per share to stockholders of record at the close of business on July 7, 2014. The dividend totaling $217 was paid on July 18, 2014. On March 25, 2014, our Board of Directors announced a cash dividend of $0.025 per share to stockholders of record at the close of business on April 7, 2014. The dividend, totaling $217, was paid on April 14, 2014. The Board of Directors will review its dividend policy on a quarterly basis, and make a determination subject to the profitability and free cash flow and the other requirements of the business.