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: March 31, 2015
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 ¨

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 May 12, 2015:8,694,678

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	17
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)

	March 31, 2015 Unaudited			December 31, 2014
ASSETS
Current assets:
Cash	$	4,652		$	1,130
Trade accounts receivable (less allowance for doubtful accounts of $536 and $562)		108,094			89,693
Inventories		186,753			192,064
Deferred tax assets		3,901			3,911
Advance to supplier, net of imputed interest of $31 and  $66		2,469			3,277
Other current assets, including derivatives		13,640			18,605
Total current assets		319,509			308,680
Preferential supply agreement, net		240			321
Long-term financing costs, net of amortization		915			1,024
Property and equipment, net		4,335			4,258
Total assets	$	324,999		$	314,283
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Notes payable – banks	$	222,331		$	201,088
Trade accounts payable		31,389			42,626
Income taxes payable		4,898			4,190
Accrued expenses and derivative liabilities		4,859			4,137
Dividends payable		218			449
Total current liabilities		263,695			252,490
Subordinated convertible debt net of unamortized discount of $605 and $803 respectively		10,395			10,197
Derivative liability for embedded conversion option		1,738			2,734
Deferred taxes payable		49			51
Total liabilities		275,877			265,472
Commitments (Note 19)
Stockholders' equity:
Common stock $0.01 par value, 20,000,000 shares authorized and 11,749,651 shares issued at March 31, 2015 and December 31, 2014		117			117
Additional paid-in capital		13,678			13,678
Retained earnings		42,242			40,805
Accumulated other comprehensive loss		(719	)		(334	)
Treasury stock, 3,007,528 and 2,843,717 shares at March 31, 2015 and December 31, 2014, respectively		(6,196	)		(5,455	)
Total stockholders' equity		49,122			48,811
Total liabilities and stockholders' equity	$	324,999		$	314,283

See notes to unaudited condensed consolidated financial statements

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EMPIRE RESOURCES, INC. AND SUBSIDIARIES

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

	Three Months Ended March 31,
	2015		2014
	Unaudited		Unaudited
			See Note 20
Net sales	$	168,253	$	138,317
Cost of goods sold		161,077		131,830
Gross profit		7,176		6,487
Selling, general and administrative expenses		3,898		3,299
Operating income		3,278		3,188
Interest expense, net		1,675		1,091
Income before other expenses		1,603		2,097
Other expenses
Change in value of derivative liability		996		(429	)
Income before income taxes		2,599		1,668
Income taxes		944		860
Net income	$	1,655	$	808
Weighted average shares outstanding:
Basic		8,807		8,629
Diluted		11,924		8,886
Earnings per share:
Basic	$	0.19	$	0.09
Diluted	$	0.09	$	0.09

See notes to unaudited condensed consolidated financial statements

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EMPIRE RESOURCES, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Comprehensive Income
(In thousands)

	Three Months Ended March 31,
	2015			2014
	Unaudited			Unaudited
Net income	$	1,655		$	808
Other comprehensive (loss)/income before tax
Foreign currency translation adjustments		(385	)		6
Decrease in value of interest rate swap liability		-			13
Other comprehensive (loss)/income before tax		(385	)		19
Income tax related to components of other comprehensive (loss)/income					(5	)
Other comprehensive (loss)/income, net of tax		(385	)		14
Comprehensive income	$	1,270		$	822

See notes to unaudited condensed consolidated financial statements

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EMPIRE RESOURCES, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows
(In thousands)

	Three Months Ended March 31,
	2015			2014
	Unaudited			Unaudited
Cash flows - operating activities:
Net income	$	1,655		$	808
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization		162			275
Change in value of derivative liability		(996	)		429
Amortization of convertible note discount		197			141
Imputed interest on vendor advance		(26	)		(55	)
Amortization of supply agreement		80			80
Deferred income taxes		9			2
Foreign exchange loss/(gain) and other		460			(2	)
Stock-based compensation		-			373
Changes in:
Trade accounts receivable		(19,269	)		(25,743	)
Inventories		4,409			22,124
Other current assets		4,959			769
Trade accounts payable		(11,217	)		(13,776	)
Income taxes payable		716			838
Accrued expenses and derivative liabilities		804			2,584
Net cash  used in operating activities		(18,057	)		(11,153	)
Cash flows - investing activities:
Repayment related to supply agreement		833			833
Purchases of property and equipment		(116	)		(11	)
Net cash provided by investing activities		717			822
Cash flows - financing activities:
Proceeds from notes payable – banks		22,163			9,833
Repayments - mortgage payable		-			(44	)
Deferred financing costs		(13	)		-
Dividends paid		(449	)		(215	)
Treasury stock purchased		(741	)		(13	)
Net cash provided by financing activities		20,960			9,561
Net increase/(decrease) in cash		3,620			(770	)
Effect of exchange rate		(98	)		1
Cash at beginning of period		1,130			2,477
Cash at end of the period	$	4,652		$	1,708
Supplemental disclosures of cash flow information:
Cash paid during the period for:
Interest	$	1,310		$	1,509
Income taxes	$	614		$	241
Non cash financing activities:
Dividend declared but not yet paid	$	218		$	217

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, 2014		11,750	$	117	$	13,678	$	40,805		$	(334	)	$	(5,455	)	$	48,811
Treasury stock acquired														(741	)		(741	)
Net change in cumulative translation adjustment											(385	)					(385	)
Dividends declared ($0.025 per share)								(218	)								(218	)
Net income								1,655									1,655
Balance at March 31, 2015		11,750	$	117	$	13,678	$	42,242		$	(719	)	$	(6,196	)	$	49,122

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, Empire Resources Pacific Ltd., the Company’s sales agent in Australia, 6900 Quad Avenue LLC, the owner of a warehouse facility in Baltimore, Maryland, Imbali Metals BVBA (“Imbali”), the Company’s operating subsidiary in Europe and Empire Resources de Mexico, the Company’s 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. Newly Effective Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (FASB) issued new accounting guidance, Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers, on revenue recognition. The new standard provides for a single five-step model to be applied to all revenue contracts with customers as well as requires additional financial statement disclosures that will enable users to understand the nature, amount, timing and uncertainty of revenue and cash flows relating to customer contracts. Companies have an option to use either a retrospective approach or cumulative effect adjustment approach to implement the standard. There is no option for early adoption. For public entities, this ASU is effective for fiscal years and interim periods within those years beginning after December 15, 2016. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements.

In April 2015, the Financial Accounting Standards Board (“FASB”) issued accounting guidance, Accounting Standards Update (“ASU”) No. 2015-03, Simplifying the Presentation of Debt Issuance Costs. The guidance requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability, consistent with the presentation of debt discounts. The guidance will be effective for fiscal years beginning after December 15, 2015. The Company does not believe that the new standard will have a material impact on its consolidated financial statements.

3. 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, 2014.

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 March 31, 2015 and the results of its operations and cash flows for the three months ended March 31, 2015 and 2014. Interim results may not be indicative of the results that may be expected for the year.

4. 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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5. Concentrations

During the three month periods ended March 31, 2015 and 2014 no one customer accounted for 10% or more of the Company’s consolidated sales.

The Company purchases metal products from a limited number of suppliers throughout the world. Two suppliers, PT Alumindo Light Metal Industry Tbk (“PT. Alumindo”) and Southeast Aluminum accounted for an aggregate of 37% of total purchases during the three month period ended March 31, 2015. For the period ended March 31, 2014, two suppliers, PT Alumindo and Hulamin Ltd. accounted for an aggregate of 40% of total purchases.

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

6. 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 March 31, 2015, there were outstanding employee stock options to acquire 400 shares of common stock, which had vested in prior years. During the three month period ended March 31, 2015, the Company did not grant any stock options.

7. 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 March 31, 2015, the Company repurchased a total of 1,502 shares under the repurchase program for an aggregate cost of $4,379. During the three month periods ended March 31, 2015 and 2014, the Company purchased 164 and 3 common shares at a cost of $741 and $13, respectively.

8. 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.

9. Notes Payable—Banks

Prior to June 19, 2014, the Company was a party to a 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 the Company 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 provided for amounts up to $150,000, and the uncommitted facility provided for a maximum amount of $75,000. The agreement also allowed for an additional increase in the committed credit facility of $75,000, for a total of $300,000, subject to certain restrictions and conditions. On December 18, 2014, these credit lines were amended and increased by $50,000 increasing the overall line of credit to $275,000. The amended committed credit agreement increased by $35,000 to $185,000, and the uncommitted credit facility, increased by $15,000 to $90,000. There were no changes to the interest rate or to the maturity date of the committed facility, which remains June 19, 2017. Subsequent to these amendments the additional aggregate increase available under the term of these agreements is $25,000, subject to certain restrictions and conditions. Borrowings under these lines of credit are secured by substantially all of the Company’s assets.

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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 March 31, 2015, the Company was in compliance with all covenants under the credit agreements.

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 March 31, 2015, the committed line of credit had loans outstanding of $156,800 and the uncommitted line of credit had loans outstanding of $58,500.  As of March 31, 2015 and December 31, 2014, the credit utilized amounted to, respectively, $255,847 and $229,386 (including approximately $40,547 and $36,586 of outstanding letters of credit).

The Company’s wholly owned Belgian subsidiary, Imbali, maintains a line of credit with ING Belgium S.A./N.V., for a EUR 8,000 (US$8,588) 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 March 31, 2015, the outstanding loan amounted to EUR 6,550 (US $7,031), as compared to EUR 6,850 (US $8,288) on December 31, 2014. As of March 31, 2015 Imbali was in compliance with all financial covenants.

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 March 31, 2015, the notes are convertible at the option of the holders into shares of common stock at a conversion rate of 259.09 shares of common stock per $1 principal amount of notes (equivalent to a conversion price of $3.86 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 sixteen 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 March 31, 2015, 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 month periods ended March 31, 2015, and 2014, the change in the fair value of the derivative liability resulted in a gain of $996 and a loss of $429, respectively. Amortization of the discount amounted to $197 for the three month periods end March 31, 2015, and $141 for the three month period ended March 31, 2014.

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.

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The following table summarizes the significant inputs resulting from the calculations as of March 31, 2015, December 31, 2014 and issuance:

	March 31, 2015			December 31, 2014			June 3, 2011
Equity value	$	37,092		$	41,738		$	36,811
Volatility		30	%		35	%		70	%
Risk free return		0.26	%		0.67	%		1.60	%
Dividend yield		2.36	%		2.15	%		2.51	%
Strike price	$	3.86		$	3.88		$	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, a leading producer of high quality semi-finished aluminum products, and its affiliates, as described below.  The Company provided a $10,000 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 May 15, 2015 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 month period ended March 31, 2015 and 2014 amortization amounted to $80 in each three month period.

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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 March 31,
	2015			2014
Numerator:
Net income	$	1,655		$	808
Add back of interest on convertible subordinated debt, net of taxes		170			-
Add back of amortization of discount on convertible subordinated debt		122			-
Adjustment for change in value of convertible note derivative		(921	)		-
Numerator for diluted earnings per share	$	1,026		$	808
Denominator:
Weighted average shares outstanding-basic		8,807			8,629
Dilutive effect of convertible subordinated debt		2,850
Dilutive effect of stock options		267			257
Weighted average shares outstanding-diluted		11,924			8,886
Basic Earnings per Share	$	0.19		$	0.09
Diluted Earnings per Share	$	0.09		$	0.09

In computing diluted earnings per share for the three months ended March 31, 2014 no effect has been given to the 3,026 common shares issuable upon conversion of subordinated debt as the effect thereof is anti-dilutive.

12. Dividends

On March 19, 2015, the Company announced a cash dividend of $0.025 per share to stockholders of record at the close of business on April 3, 2015. The dividend, totaling $218, was paid on April 13, 2015. The Board of Directors will review its dividend policy on a quarterly basis, and make a determination regarding future dividends 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	March 31, 2015		December 31, 2014
Asset derivatives:
Aluminum futures contracts	Other current  assets	$	4,620		9,769
Foreign currency forward contracts	Other current  assets		403		1,337
Total		$	5,023	$	11,106

For the periods ended March 31, 2015 and December 31, 2014, hedge ineffectiveness associated with derivatives designated as fair value hedges was insignificant, and no fair value hedges were derecognized.

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
Derivatives in hedging		Location of Gain or	March  31,
relationships		(Loss) Recognized	2015		2014
Foreign currency forward contracts	(a)	Cost of goods sold	$	674	$	27
Interest rate swaps	(b)	Interest expense, net		-		(14	)
Aluminum futures	(c)	Cost of goods sold		4,260		1,644
Total			$	4,934	$	1,657

a) Fair value hedge: the related hedged item is accounts receivable and offsetting losses in the three months March 31, 2015 and 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 losses in 2015 and 2014 are included in cost of goods sold in the same respective amounts.

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.

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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 March 31, 2015 and December 31, 2014 are classified as follows:

	March  31, 2015					December 31, 2014
	Level 1		Level 2	Level 3		Level 1		Level 2	Level 3
Assets:
Inventories	$	168,189				$	165,586
Aluminum futures contracts	$	4,620					9,769
Foreign currency forward contracts	$	403					1,337
Liabilities:
Embedded conversion option				$	1,738				$	2,734

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 March 31, 2015 and December 31, 2014, 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 March 31, 2015 and December 31, 2014, 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 13).

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 March 31,
	2015		2014
United States	$	117,912	$	74,968
Latin America		13,206		33,171
Canada		13,960		11,696
Australia & New Zealand		12,609		10,913
Europe		10,566		7,569
	$	168,253	$	138,317

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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 March 31, 2015	Foreign Currency Translation			Interest Rate Swap Contract		Total
Beginning balance	$	(334	)			$	(334	)
Other comprehensive (loss) before reclassification		(385	)		-		(385	)
Loss reclassified to operations		-			-		-
Net current period other comprehensive loss		(385	)		-		(385	)
Ending balance	$	(719	)	$	-	$	(719	)

Three Months ended March  31, 2014	Foreign Currency Translation		Interest Rate Swap Contract			Total
Beginning balance	$	84	$	(33	)	$	51
Other comprehensive income before reclassification		6					6
Loss reclassified to operations		-		8	(a)		8
Net current period other comprehensive income		6		8			14
Ending balance	$	90	$	(25	)	$	65
(a) Reclassified to following line items in the statement of income:
Interest expense, net			$	13
Income taxes				(5	)
Net of tax			$	8

18. Income Taxes

The disproportionate relationship between income taxes and pre-tax income for the three month period ended March 31, 2014 is primarily attributable to no tax benefit being recognized for the loss from change in value of the derivative liability, as such loss will not be deductible for income tax purposes.

19. Commitments

The Company had $40,547 in outstanding letters of credit to certain of its suppliers at March 31, 2015 and $36,586 at December 31, 2014.

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20. Restatement

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 $1,026. The adjustment reflects that the loss arising from the change in value of the derivative liability for the quarter is not recognized for income tax purposes.

Adjusted amounts after restatement are as follows:

	Three months ended
	March 31, 2014
Net income as previously reported	$	1,026
Adjustment	$	(218	)
Net income as restated	$	808
Earning per share as restated:
Basic	$	0.09
Diluted	$	0.09

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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, 2015. 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, 2014 that was filed with the Securities and Exchange Commission on March 31, 2015, 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 37% of our products during the first three months of 2015 as compared to an aggregate of 40% of our products during the same period in 2014. 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 March 31, 2015, we had $108,094 in trade receivables, after an allowance for doubtful accounts of $536. 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.

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Comparison of Three Months Ended March 31, 2015 and 2014

During the three months ended March 31, 2015, net sales increased by $29,936, from $138,317 to $168,253 or 21.6% from the same period in 2014.  This increase was due to improved sales volumes in all geographic regions except for Latin America, as compared to the same period in 2014. In particular, sales in the United States increased 57% due to strong demand in this market. Sales in Latin America declined 60% due to economic stresses in the region.

Gross profit increased by $689, to $7,176 during the three months ended March 31, 2015 from $6,487 in the same period of 2014, representing a 10.6% increase, of which $1,404 is attributable to the increased sales and ($714) to a decline in the gross margin of 0.4% to 4.3% from 4.7%. The decline in margin reflects increased market pressures in Latin America.

Selling, general and administrative expenses during the three months ended March 31, 2015 increased by $599 from $3,299 to $3,898 primarily as a result of sales compensation based on increased sales.

During the three months ended March 31, 2015, interest expense increased 53.5% or $584 to $1,675 from $1,091 for the same period in 2014 as a result of increased bank loans to support higher inventory levels, higher accounts receivable and lower accounts payable balances.  During the three months ended March 31, 2015 and 2014, interest on our 10% Convertible Senior Subordinated Notes Due June 1, 2016 totaled $275 and $300, respectively.Amortization of the debt discount in connection with these notes totaled $197 for the three months ended March 31, 2015 and $141 for March 31, 2014.

During the three months ended March 31, 2015 income before other expenses declined by $494 from $2,097 to $1,603 or 23.6%. This decline is due to the increased selling, general and administrative expenses and interest expense offset by the increase in gross profit.

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 gain of $996 during the three month period ended March 31, 2015, as compared to a $429 non-cash non-operating loss during the same period in 2014. 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 non-cash, non-operating gain of $996 and the non-cash, non-operating loss of $429 during the quarters ended March 31, 2015 and 2014, respectively. The tax rate for the quarter ending March 31, 2015 was 36.3% and 51.6% for the quarter ending March 31, 2014. The fluctuations in the tax rates relative to reported income from 2014 to 2015, results from the material non-taxable gains or losses, for which no deferred tax is provided. 

Net income increased from $808 to $1,655 during the three months ended March 31, 2014 and March 31, 2015, respectively. The increase in net income of $847 includes a swing from a loss to a gain of $1,425 in the non-cash, non-operating change in value of the derivative liability, offset by the increased interest expense of $584.

 Liquidity and Capital Resources

Overview

At March 31, 2015, we had cash of $4,652, net accounts receivable of $108,094, senior secured debt of $215,300, junior secured debt of $7,031, 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.

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Comparison of Three Month Periods Ended March 31, 2015 and 2014

Net cash used in operating activities was $18,057 during the three months ended March 31, 2015, as compared to $11,153 during the same period in 2014. In the three months ended March 31, 2015 cash used in operating activities resulted from increases in trade accounts receivable of $19,269, decreases in trade accounts payable of $11,217, offset by a small reduction in inventories of $4,409. Our inventory levels are higher than an optimal level as we had delayed supplier deliveries in the third quarter of 2014 combined with on time supplier deliveries thereafter.

Our days sales outstanding increased from 51 days in March 2014 to 58 days in March 2015 attributable to sales in Latin America late in 2014, which has longer payment cycles. Our inventory in warehouses, available for delivery to customers, as of March 31, 2015 was approximately 71 days of sales as compared to 44 days as of the same date in 2014. Our inventory turn rate, including materials in transit, was 3.6 times or 100 days on hand, as of March 31, 2015 as compared to 4.7 times or 77 days on hand as of March 31, 2014. The days payable outstanding was 18 days as of March 31, 2015, as compared to 25 days for the same period in 2014.

Cash flows provided by investing activities during the three months ended March 31, 2015 and 2014, amounted to $717 and $822 respectively, which is primarily the monthly repayment by PT. Alumindo of the advance related to our supply agreement with PT. Alumindo.

Cash flows provided by financing activities during the three months ended March 31, 2015, amounted to $20,960, as compared to $9,561 during the same period in 2014.  During the first three months of 2015, we funded the increase in accounts receivable of $19,269 and a decrease in accounts payable of $11,217 with borrowings from our line of credit. In addition, we acquired 164 additional common shares at a cost of $741 during the period ended March 31, 2015.

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 provided for amounts up to $150,000, and the uncommitted facility provided for a maximum amount of $75,000. The agreement also allowed for an additional increase in the committed credit facility of $75,000, for a total of $300,000, subject to certain restrictions and conditions. On December 18, 2014, we amended and increased these credit lines by an aggregate of $50,000, increasing our overall line of credit to $275,000. The amended committed credit agreement was increased by $35,000 to $185,000, and the uncommitted credit facility, increased by $15,000 to $90,000. There were no changes to the interest rate or to the maturity date of the committed facility, which remains June 19, 2017. Subsequent to these amendments the additional increase available under the term of these agreements is $25,000, subject to certain restrictions and conditions. Our borrowings under these lines 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 March 31, 2015, we were in compliance with all covenants under these lines 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 on or before June 19, 2015 unless otherwise agreed to.  We anticipate that this credit agreement will be extended prior to its expiration, however, there can be no assurances that we will be able to successfully extend the term. As of March 31, 2015 and December 31, 2014, the credit utilized amounted to, respectively, $255,847 and $229,386 (including approximately $40,547 and $36,586 of outstanding letters of credit). As of March 31, 2015, the committed line of credit had loans outstanding of $156,800 and the uncommitted line of credit had loans outstanding of $58,500.

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Our wholly owned Belgian subsidiary, Imbali, maintains a line of credit with ING Belgium S.A./N.V., for a EUR 8,000 (US$8,588) 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 us. As of March 31, 2015, the outstanding loan amounted to EUR 6,550 (US $7,031), as compared to EUR 6,850 (US $8,288) on December 31, 2014. As of March 31, 2015, Imbali was in compliance with all financial covenants.

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 259.09 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 sixteen 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.

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.

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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.

Item 4. Controls and Procedures

Management’s Conclusions Regarding Effectiveness of Disclosure Controls and Procedures

As of March 31, 2015, 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 March 31, 2015.

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) or 15d-15(d) of the Exchange Act that occurred during the quarter ended March 31, 2015 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.

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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: May 15, 2015	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

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  March 31, 2015, 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.

- 24 -

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.

May 15, 2015	/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.

May 15, 2015	/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 March 31, 2015 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: May 15, 2015	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 March 31, 2015 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: May 15, 2015	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.

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Notes Payable - Banks (Details Textual) In Thousands, unless otherwise specified	1 Months Ended	3 Months Ended									1 Months Ended
	Dec. 18, 2014 USD ($)	Mar. 31, 2015 USD ($)	Mar. 31, 2015 EUR (€)	Dec. 31, 2014 USD ($)	Dec. 31, 2014 EUR (€)	Jun. 19, 2014 USD ($)	Mar. 31, 2015 Committed Facility [Member] USD ($)	Dec. 18, 2014 Committed Facility [Member] USD ($)	Mar. 31, 2015 Uncommitted Facility [Member] USD ($)	Dec. 18, 2014 Uncommitted Facility [Member] USD ($)	Jun. 19, 2014 Rabobank International [Member] USD ($)
Line of Credit Facility [Line Items]
Line of Credit Facility, Amount Outstanding	$ 275,000	$ 40,547		$ 36,586		$ 200,000	$ 156,800		$ 58,500		$ 300,000
Line of Credit Facility, Maximum Borrowing Capacity								185,000		90,000	150,000
Line of Credit Facility, Remaining Borrowing Capacity		25,000									75,000
Excess Capital	50,000
Line of Credit Facility, Current Borrowing Capacity		255,847		229,386				35,000		15,000
Line of Credit Facility, Expiration Date	Jun. 19, 2017
Line of Credit Facility, Commitment Fee Amount		8,588	8,000
Line of Credit Facility, Fair Value of Amount Outstanding		7,031	6,550	8,288	6,850
Line Of Credit Facility, Interest Rate, Variable Rate Basis		EURIBOR plus 1.75%	EURIBOR plus 1.75%
Line of Credit Facility, Increase (Decrease), Other, Net											$ 75,000

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Restatement (Details Textual) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Impact Of Restatement On Earnings Per share Basic And Diluted		$ 0.03
Net Income (Loss) Attributable To Parent	$ 1,655	$ 808
Scenario, Adjustment [Member]
Net Income (Loss) Attributable To Parent		(218)
Scenario, Previously Reported [Member]
Net Income (Loss) Attributable To Parent		$ 1,026

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Fair Value of Financial Instruments (Details Textual) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Fair Value of Financial Instruments [Line Items]
Debt Instrument, Fair Value Disclosure	$ 11,000	$ 11,000

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Derivative Financial Instruments and Risk Management (Details 1) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015		Mar. 31, 2014
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, Gain (Loss) on Derivative, Net, Total	$ 4,934		$ 1,657
Foreign currency forward contracts [Member] | Cost of goods sold [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, Gain (Loss) on Derivative, Net, Total	674	[1]	27	[1]
Interest rate swaps [Member] | Interest expense, net [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, Gain (Loss) on Derivative, Net, Total	0	[2]	(14)	[2]
Aluminum futures [Member] | Cost of goods sold [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, Gain (Loss) on Derivative, Net, Total	$ 4,260	[3]	$ 1,644	[3]

[1] Fair value hedge: the related hedged item is accounts receivable and offsetting losses in the three months March 31, 2015 and 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 losses in 2015 and 2014 are included in cost of goods sold in the same respective amounts.

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Business Segment and Geographic Area Information (Tables)

3 Months Ended

Mar. 31, 2015

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 March 31,
	2015		2014
United States	$	117,912	$	74,968
Latin America		13,206		33,171
Canada		13,960		11,696
Australia & New Zealand		12,609		10,913
Europe		10,566		7,569
	$	168,253	$	138,317

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Accumulated Other Comprehensive Income/(Loss)

3 Months Ended

Mar. 31, 2015

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:

Three Months ended March 31, 2015	Foreign Currency  Translation		Interest Rate Swap Contract		Total
Beginning balance	$	(334)			$	(334)
Other comprehensive (loss) before reclassification		(385)		-		(385)
Loss reclassified to operations		-				-
Net current period other comprehensive loss		(385)		-		(385)
Ending balance	$	(719)	$	-	$	(719)

Three Months ended March  31, 2014	Foreign Currency Translation		Interest Rate Swap Contract			Total
Beginning balance	$	84	$	(33)		$	51
Other comprehensive income before reclassification		6					6
Loss reclassified to operations		-		8	(a)		8
Net current period other comprehensive income		6		8			14
Ending balance	$	90	$	(25)		$	65
(a) Reclassified to following line items in the statement of income:
Interest expense, net			$	13
Income taxes				(5)
Net of tax			$	8

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Accumulated Other Comprehensive Income/(Loss) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015		Mar. 31, 2014
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance, Foreign currency translation	$ (334)		$ 84
Other comprehensive (loss) before reclassification, Foreign Currency Translation	(385)		6
Loss reclassified to operations, Foreign Currency Translation	0		0
Net current period other comprehensive income (loss), Foreign Currency Translation	(385)		6
Ending balance, Foreign Currency Translation	(719)		90
Beginning balance, Interest Rate Swap Contract	0		(33)
Other comprehensive (loss) before reclassification, Interest Rate Swap Contract	0
Loss reclassified to operations, Interest Rate Swap Contract		[1]	8	[2]
Net current period other comprehensive income (loss), Interest Rate Swap Contract	0		8
Ending balance, Interest Rate SwapContract	0		(25)
Beginning balance	(334)		51
Other comprehensive (loss) before reclassification	(385)		6
Loss reclassified to operations	0		8
Net current period other comprehensive loss	(385)		14
Ending balance	$ (719)		$ 65

[1] Reclassified to following line items in the statement of income: Interest expense, net $ 14 Income taxes (5) Net of tax $ 9

[2] Reclassified to following line items in the statement of income: Interest expense, net $ 13 Income taxes (5) Net of tax $ 8

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Earnings per Share (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Numerator:
Net income	$ 1,655	$ 808
Add back of interest on convertible subordinated debt, net of taxes	170	0
Add back of amortization of discount on convertible subordinated debt	122	0
Adjustment for change in value of convertible note derivative, net of taxes	(921)	0
Numerator for diluted earnings per share	$ 1,026	$ 808
Denominator:
Weighted average shares outstanding-basic (in shares)	8,807	8,629
Dilutive effect of convertible subordinated debt (in shares)	2,850
Dilutive effect of stock options (in shares)	267	257
Weighted average shares outstanding-diluted (in shares)	11,924	8,886
Basic Earnings per Share (in dollars per share)	$ 0.19	$ 0.09
Diluted Earnings per Share (in dollars per share)	$ 0.09	$ 0.09

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Stock Options (Details Textual) In Thousands, unless otherwise specified	Mar. 31, 2015
Stock Option [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number	400

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Commitments (Details Textual) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Commitments and Contingencies [Line Items]
Letters of Credit Outstanding, Amount	$ 40,547	$ 36,586

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Fair Value (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Fair Value, Inputs, Level 1 [Member] | Inventories [Member]
Assets:
Assets, Fair Value Disclosure	$ 168,189	$ 165,586
Fair Value, Inputs, Level 1 [Member] | Aluminum futures contracts [Member]
Assets:
Assets, Fair Value Disclosure	4,620	9,769
Fair Value, Inputs, Level 1 [Member] | Foreign Currency Future Contracts [Member]
Assets:
Assets, Fair Value Disclosure	403	1,337
Fair Value, Inputs, Level 2 [Member] | Inventories [Member]
Assets:
Assets, Fair Value Disclosure	0
Fair Value, Inputs, Level 2 [Member] | Aluminum futures contracts [Member]
Assets:
Assets, Fair Value Disclosure	0
Fair Value, Inputs, Level 2 [Member] | Foreign Currency Future Contracts [Member]
Assets:
Assets, Fair Value Disclosure	0
Fair Value, Inputs, Level 3 [Member] | Embedded conversion option [Member]
Liabilities:
Liabilities, Fair Value Disclosure	$ 1,738	$ 2,734

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The Company

3 Months Ended

Mar. 31, 2015

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, Empire Resources Pacific Ltd., the Company’s sales agent in Australia, 6900 Quad Avenue LLC, the owner of a warehouse facility in Baltimore, Maryland, Imbali Metals BVBA (“Imbali”), the Company’s operating subsidiary in Europe and Empire Resources de Mexico, the Company’s 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 Textual) (Subordinated Debt [Member]) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014
Subordinated Debt [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	3,026

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Convertible Subordinated Debt (Tables)

3 Months Ended

Mar. 31, 2015

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 March 31, 2015, December 31, 2014 and issuance:

	March 31, 2015			December 31, 2014			June 3, 2011
Equity value	$	37,092		$	41,738		$	36,811
Volatility		30	%		35	%		70	%
Risk free return		0.26	%		0.67	%		1.60	%
Dividend yield		2.36	%		2.15	%		2.51	%
Strike price	$	3.86		$	3.88		$	4.65

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Restatement

3 Months Ended

Mar. 31, 2015

Restatement [Abstract]

Restatement [Text Block]

20. Restatement

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 $1,026. The adjustment reflects that the loss arising from the change in value of the derivative liability for the quarter is not recognized for income tax purposes.

Adjusted amounts after restatement are as follows:

	Three months ended
	March 31, 2014
Net income as previously reported	$	1,026
Adjustment	$	(218)
Net income as restated	$	808
Earning per share as restated:
Basic	$	0.09
Diluted	$	0.09

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Dividends (Details Textual) (USD $) In Thousands, except Per Share data, unless otherwise specified	1 Months Ended	3 Months Ended		0 Months Ended
	Mar. 19, 2015	Mar. 31, 2015	Mar. 31, 2014	Apr. 13, 2015
Dividends Payable [Line Items]
Common Stock, Dividends, Per Share, Cash Paid	$ 0.025
Payments of Dividends, Total		$ 449	$ 215
Subsequent Event [Member]
Dividends Payable [Line Items]
Payments of Dividends, Total				$ 218

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Earnings per Share (Tables)

3 Months Ended

Mar. 31, 2015

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 March 31,
	2015		2014
Numerator:
Net income	$	1,655	$	808
Add back of interest on convertible subordinated debt, net of taxes		170		-
Add back of amortization of discount on convertible subordinated debt		122		-
Adjustment for change in value of convertible note derivative		(921)		-
Numerator for diluted earnings per share	$	1,026	$	808
Denominator:
Weighted average shares outstanding-basic		8,807		8,629
Dilutive effect of convertible subordinated debt		2,850
Dilutive effect of stock options		267		257
Weighted average shares outstanding-diluted		11,924		8,886
Basic Earnings per Share	$	0.19	$	0.09
Diluted Earnings per Share	$	0.09	$	0.09

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Derivative Financial Instruments and Risk Management (Tables)

3 Months Ended

Mar. 31, 2015

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		March 31,		December 31,
as fair value hedges	Balance Sheet Location	2015		2014
Asset derivatives:
Aluminum futures contracts	Other current assets	$	4,620		9,769
Foreign currency forward contracts	Other current assets		403		1,337
Total		$	5,023	$	11,106

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
Derivatives in hedging		Location of Gain or	March  31,
relationships		(Loss) Recognized	2015		2014
Foreign currency forward contracts	(a)	Cost of goods sold	$	674	$	27
Interest rate swaps	(b)	Interest expense, net		-		(14)
Aluminum futures	(c)	Cost of goods sold		4,260		1,644
Total			$	4,934	$	1,657

a) Fair value hedge: the related hedged item is accounts receivable and offsetting losses in the three months March 31, 2015 and 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 losses in 2015 and 2014 are included in cost of goods sold in the same respective amounts.

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Condensed Consolidated Statement of Stockholders' Equity [Parenthetical] (USD $)	Mar. 31, 2015
Dividends declared	$ 0.025

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Fair Value (Tables)

3 Months Ended

Mar. 31, 2015

Fair Value Disclosures [Abstract]

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

Major categories of assets and liabilities measured at fair value at March 31, 2015 and December 31, 2014 are classified as follows:

	March  31, 2015					December 31, 2014
	Level 1		Level 2	Level 3		Level 1		Level 2	Level 3
Assets:
Inventories	$	168,189				$	165,586
Aluminum futures contracts	$	4,620					9,769
Foreign currency forward contracts	$	403					1,337
Liabilities:
Embedded conversion option				$	1,738				$	2,734

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Convertible Subordinated Debt (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended	12 Months Ended
	Mar. 31, 2015	Dec. 31, 2014	Jun. 03, 2011
Convertible Subordinated Debt [Line Items]
Equity value	$ 37,092	$ 41,738	$ 36,811
Volatility	30.00%	35.00%	70.00%
Risk free return	0.26%	0.67%	1.60%
Dividend yield	2.36%	2.15%	2.51%
Strike price	$ 3.86	$ 3.88	$ 4.65

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Restatement (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Net income	$ 1,655	$ 808
Earning per share as restated:
Basic (in per shares)		$ 0.09
Diluted (in per share)		$ 0.09
Scenario, Previously Reported [Member]
Net income		1,026
Scenario, Adjustment [Member]
Net income		$ (218)

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Condensed Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Current assets:
Cash	$ 4,652	$ 1,130
Trade accounts receivable (less allowance for doubtful accounts of $536 and $562)	108,094	89,693
Inventories	186,753	192,064
Deferred tax assets	3,901	3,911
Advance to supplier, net of imputed interest of $31 and $66	2,469	3,277
Other current assets, including derivatives	13,640	18,605
Total current assets	319,509	308,680
Preferential supply agreement, net	240	321
Long-term financing costs, net of amortization	915	1,024
Property and equipment, net	4,335	4,258
Total assets	324,999	314,283
Current liabilities:
Notes payable - banks	222,331	201,088
Trade accounts payable	31,389	42,626
Income taxes payable	4,898	4,190
Accrued expenses and derivative liabilities	4,859	4,137
Dividends payable	218	449
Total current liabilities	263,695	252,490
Subordinated convertible debt net of unamortized discount of $605 and $803 respectively	10,395	10,197
Derivative liability for embedded conversion option	1,738	2,734
Deferred taxes payable	49	51
Total liabilities	275,877	265,472
Commitments (Note 19)
Stockholders' equity:
Common stock $0.01 par value, 20,000,000 shares authorized and 11,749,651 shares issued at March 31, 2015 and December 31, 2014	117	117
Additional paid-in capital	13,678	13,678
Retained earnings	42,242	40,805
Accumulated other comprehensive loss	(719)	(334)
Treasury stock, 3,007,528 and 2,843,717 shares at March 31, 2015 and December 31, 2014, respectively	(6,196)	(5,455)
Total stockholders' equity	49,122	48,811
Total liabilities and stockholders' equity	$ 324,999	$ 314,283

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Derivative Financial Instruments and Risk Management (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Fair Value Hedge Assets	$ 5,023	$ 11,106
Other current assets Member] | Foreign currency forward contracts [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Fair Value Hedge Assets	403	1,337
Other current assets Member] | Aluminum futures contracts [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Fair Value Hedge Assets	$ 4,620	$ 9,769

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Condensed Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Cash flows - operating activities:
Net income	$ 1,655	$ 808
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization	162	275
Change in value of derivative liability	(996)	429
Amortization of convertible note discount	197	141
Imputed interest on vendor advance	(26)	(55)
Amortization of supply agreement	80	80
Deferred income taxes	9	2
Foreign exchange loss/(gain) and other	460	(2)
Stock-based compensation	0	373
Changes in:
Trade accounts receivable	(19,269)	(25,743)
Inventories	4,409	22,124
Other current assets	4,959	769
Trade accounts payable	(11,217)	(13,776)
Income taxes payable	716	838
Accrued expenses and derivative liabilities	804	2,584
Net cash used in operating activities	(18,057)	(11,153)
Cash flows - investing activities:
Repayment related to supply agreement	833	833
Purchases of property and equipment	(116)	(11)
Net cash provided by investing activities	717	822
Cash flows - financing activities:
Proceeds from notes payable - banks	22,163	9,833
Repayments - mortgage payable	0	(44)
Deferred financing costs	(13)	0
Dividends paid	(449)	(215)
Treasury stock purchased	(741)	(13)
Net cash provided by financing activities	20,960	9,561
Net increase/(decrease) in cash	3,620	(770)
Effect of exchange rate	(98)	1
Cash at beginning of period	1,130	2,477
Cash at end of the period	4,652	1,708
Supplemental disclosures of cash flow information:
Interest	1,310	1,509
Income taxes	614	241
Non cash financing activities:
Dividend declared but not yet paid	$ 218	$ 217

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Restatement (Tables)

3 Months Ended

Mar. 31, 2015

Restatement [Abstract]

Restatement to Prior Year Income [Table Text Block]

Adjusted amounts after restatement are as follows:

	Three months ended
	March 31, 2014
Net income as previously reported	$	1,026
Adjustment	$	(218)
Net income as restated	$	808
Earning per share as restated:
Basic	$	0.09
Diluted	$	0.09

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Fair Value

3 Months Ended

Mar. 31, 2015

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 March 31, 2015 and December 31, 2014 are classified as follows:

	March  31, 2015					December 31, 2014
	Level 1		Level 2	Level 3		Level 1		Level 2	Level 3
Assets:
Inventories	$	168,189				$	165,586
Aluminum futures contracts	$	4,620					9,769
Foreign currency forward contracts	$	403					1,337
Liabilities:
Embedded conversion option				$	1,738				$	2,734

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Concentrations (Details Textual)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Sales Revenue, Goods, Net [Member]
Concentration Risk, Percentage	10.00%	10.00%
Cost Of Goods, Total [Member]
Concentration Risk, Percentage	37.00%	40.00%

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Business Segment and Geographic Area Information

3 Months Ended

Mar. 31, 2015

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 March 31,
	2015		2014
United States	$	117,912	$	74,968
Latin America		13,206		33,171
Canada		13,960		11,696
Australia & New Zealand		12,609		10,913
Europe		10,566		7,569
	$	168,253	$	138,317

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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, 2014	$ 48,811	$ 117	$ 13,678	$ 40,805	$ (334)	$ (5,455)
Balance (in shares) at Dec. 31, 2014		11,750
Treasury stock acquired	(741)					(741)
Net change in cumulative translation adjustment	(385)				(385)
Dividends declared ($0.025 per share)	(218)			(218)
Net income	1,655			1,655
Balance at Mar. 31, 2015	$ 49,122	$ 117	$ 13,678	$ 42,242	$ (719)	$ (6,196)
Balance (in shares) at Mar. 31, 2015		11,750

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Condensed Consolidated Balance Sheets [Parenthetical] (USD $) In Thousands, except Share data, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Allowance for doubtful accounts, trade accounts	$ 536	$ 562
Imputed interest, advance to supplier amortization amount	31	66
Unamortized discount, subordinated convertible debt	$ 605	$ 803
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)	3,007,528	2,843,717

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Notes Payable - Banks

3 Months Ended

Mar. 31, 2015

Debt Disclosure [Abstract]

Long-term Debt [Text Block]

9. Notes Payable—Banks

Prior to June 19, 2014, the Company was a party to a 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 the Company 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 provided for amounts up to $150,000, and the uncommitted facility provided for a maximum amount of $75,000. The agreement also allowed for an additional increase in the committed credit facility of $75,000, for a total of $300,000, subject to certain restrictions and conditions. On December 18, 2014, these credit lines were amended and increased by $50,000 increasing the overall line of credit to $275,000. The amended committed credit agreement increased by $35,000 to $185,000, and the uncommitted credit facility, increased by $15,000 to $90,000. There were no changes to the interest rate or to the maturity date of the committed facility, which remains June 19, 2017. Subsequent to these amendments the additional aggregate increase available under the term of these agreements is $25,000, subject to certain restrictions and conditions. Borrowings under these lines of credit are secured by substantially all of the Company’s 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 March 31, 2015, the Company was in compliance with all covenants under the credit agreements.

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 March 31, 2015, the committed line of credit had loans outstanding of $156,800 and the uncommitted line of credit had loans outstanding of $58,500. As of March 31, 2015 and December 31, 2014, the credit utilized amounted to, respectively, $255,847 and $229,386 (including approximately $40,547 and $36,586 of outstanding letters of credit).

The Company’s wholly owned Belgian subsidiary, Imbali, maintains a line of credit with ING Belgium S.A./N.V., for a EUR 8,000 (US$8,588) 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 March 31, 2015, the outstanding loan amounted to EUR 6,550 (US $7,031), as compared to EUR 6,850 (US $8,288) on December 31, 2014. As of March 31, 2015 Imbali was in compliance with all financial covenants.

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Document And Entity Information	3 Months Ended
	Mar. 31, 2015	May 12, 2015
Document Information [Line Items]
Entity Registrant Name	EMPIRE RESOURCES INC /NEW/
Entity Central Index Key	0001019272
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Trading Symbol	ERS
Entity Common Stock, Shares Outstanding		8,694,678
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2015
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2015

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Convertible Subordinated Debt

3 Months Ended

Mar. 31, 2015

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 March 31, 2015, the notes are convertible at the option of the holders into shares of common stock at a conversion rate of 259.09 shares of common stock per $1 principal amount of notes (equivalent to a conversion price of $3.86 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 sixteen 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 March 31, 2015, 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 month periods ended March 31, 2015, and 2014, the change in the fair value of the derivative liability resulted in a gain of $996 and a loss of $429, respectively. Amortization of the discount amounted to $197 for the three month periods end March 31, 2015, and $141 for the three month period ended March 31, 2014.

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 March 31, 2015, December 31, 2014 and issuance:

	March 31, 2015			December 31, 2014			June 3, 2011
Equity value	$	37,092		$	41,738		$	36,811
Volatility		30	%		35	%		70	%
Risk free return		0.26	%		0.67	%		1.60	%
Dividend yield		2.36	%		2.15	%		2.51	%
Strike price	$	3.86		$	3.88		$	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, a leading producer of high quality semi-finished aluminum products, and its affiliates, as described below.  The Company provided a $10,000 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 May 15, 2015 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 month period ended March 31, 2015 and 2014 amortization amounted to $80 in each three month period.

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Condensed Consolidated Statements of Income (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Net sales	$ 168,253	$ 138,317
Cost of goods sold	161,077	131,830
Gross profit	7,176	6,487
Selling, general and administrative expenses	3,898	3,299
Operating income	3,278	3,188
Interest expense, net	1,675	1,091
Income before other expenses	1,603	2,097
Other expenses
Change in value of derivative liability	996	(429)
Income before income taxes	2,599	1,668
Income taxes	944	860
Net income	$ 1,655	$ 808
Weighted average shares outstanding:
Basic (in shares)	8,807	8,629
Diluted (in shares)	11,924	8,886
Earnings per share:
Basic (in dollars per share)	$ 0.19	$ 0.09
Diluted (in dollars per share)	$ 0.09	$ 0.09

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Use of Estimates

3 Months Ended

Mar. 31, 2015

Use Of Estimates [Abstract]

Use Of Estimates [Text Block]

4. 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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Interim Financial Statements

3 Months Ended

Mar. 31, 2015

Organization, Consolidation and Presentation Of Financial Statements [Abstract]

Condensed Financial Statements [Text Block]

3. 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, 2014.

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 March 31, 2015 and the results of its operations and cash flows for the three months ended March 31, 2015 and 2014. Interim results may not be indicative of the results that may be expected for the year.

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Fair Value of Financial Instruments

3 Months Ended

Mar. 31, 2015

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 March 31, 2015 and December 31, 2014, 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 March 31, 2015 and December 31, 2014, 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 13).

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Earnings per Share

3 Months Ended

Mar. 31, 2015

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 March 31,
	2015		2014
Numerator:
Net income	$	1,655	$	808
Add back of interest on convertible subordinated debt, net of taxes		170		-
Add back of amortization of discount on convertible subordinated debt		122		-
Adjustment for change in value of convertible note derivative		(921)		-
Numerator for diluted earnings per share	$	1,026	$	808
Denominator:
Weighted average shares outstanding-basic		8,807		8,629
Dilutive effect of convertible subordinated debt		2,850
Dilutive effect of stock options		267		257
Weighted average shares outstanding-diluted		11,924		8,886
Basic Earnings per Share	$	0.19	$	0.09
Diluted Earnings per Share	$	0.09	$	0.09

In computing diluted earnings per share for the three months ended March 31, 2014 no effect has been given to the 3,026 common shares issuable upon conversion of subordinated debt as the effect thereof is anti-dilutive.

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Treasury Stock

3 Months Ended

Mar. 31, 2015

Equity [Abstract]

Treasury Stock [Text Block]

7. 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 March 31, 2015, the Company repurchased a total of 1,502 shares under the repurchase program for an aggregate cost of $4,379. During the three month periods ended March 31, 2015 and 2014, the Company purchased 164 and  3 common shares at a cost of $741 and $13, respectively.  

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Concentrations

3 Months Ended

Mar. 31, 2015

Risks and Uncertainties [Abstract]

Concentration Risk Disclosure [Text Block]

5. Concentrations

During the three month periods ended March 31, 2015 and 2014 no one customer accounted for 10% or more of the Company’s consolidated sales.

The Company purchases metal products from a limited number of suppliers throughout the world. Two suppliers, PT Alumindo Light Metal Industry Tbk (“PT. Alumindo”) and Southeast Aluminum accounted for an aggregate of 37% of total purchases during the three month period ended March 31, 2015. For the period ended March 31, 2014, two suppliers, PT Alumindo and Hulamin Ltd. accounted for an aggregate of 40% of total purchases.

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

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Stock Options

3 Months Ended

Mar. 31, 2015

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

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

6. 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 March 31, 2015, there were outstanding employee stock options to acquire 400 shares of common stock, which had vested in prior years. During the three month period ended March 31, 2015, the Company did not grant any stock options.

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Inventories

3 Months Ended

Mar. 31, 2015

Inventory Disclosure [Abstract]

Inventory Disclosure [Text Block]

8. 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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Accumulated Other Comprehensive Income/(Loss) (Tables)

3 Months Ended

Mar. 31, 2015

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 March 31, 2015	Foreign Currency  Translation		Interest Rate Swap Contract		Total
Beginning balance	$	(334)			$	(334)
Other comprehensive (loss) before reclassification		(385)		-		(385)
Loss reclassified to operations		-				-
Net current period other comprehensive loss		(385)		-		(385)
Ending balance	$	(719)	$	-	$	(719)

Three Months ended March  31, 2014	Foreign Currency Translation		Interest Rate Swap Contract			Total
Beginning balance	$	84	$	(33)		$	51
Other comprehensive income before reclassification		6					6
Loss reclassified to operations		-		8	(a)		8
Net current period other comprehensive income		6		8			14
Ending balance	$	90	$	(25)		$	65
(a) Reclassified to following line items in the statement of income:
Interest expense, net			$	13
Income taxes				(5)
Net of tax			$	8

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Accumulated Other Comprehensive Income/(Loss) (Details 1) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
(a) Reclassified to following line items in the statement of income:
Income taxes	$ 944	$ 860
Net of tax	0	8
Interest Rate Swap [Member]
(a) Reclassified to following line items in the statement of income:
Interest expense, net		13
Income taxes		(5)
Net of tax		$ 8

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Derivative Financial Instruments and Risk Management

3 Months Ended

Mar. 31, 2015

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		March 31,		December 31,
as fair value hedges	Balance Sheet Location	2015		2014
Asset derivatives:
Aluminum futures contracts	Other current assets	$	4,620		9,769
Foreign currency forward contracts	Other current assets		403		1,337
Total		$	5,023	$	11,106

For the periods ended March 31, 2015 and December 31, 2014, hedge ineffectiveness associated with derivatives designated as fair value hedges was insignificant, and no fair value hedges were derecognized.

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
Derivatives in hedging		Location of Gain or	March  31,
relationships		(Loss) Recognized	2015		2014
Foreign currency forward contracts	(a)	Cost of goods sold	$	674	$	27
Interest rate swaps	(b)	Interest expense, net		-		(14)
Aluminum futures	(c)	Cost of goods sold		4,260		1,644
Total			$	4,934	$	1,657

a) Fair value hedge: the related hedged item is accounts receivable and offsetting losses in the three months March 31, 2015 and 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 losses in 2015 and 2014 are included in cost of goods sold in the same respective amounts.

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Income Taxes

3 Months Ended

Mar. 31, 2015

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 month period ended March 31, 2014 is primarily attributable to no tax benefit being recognized for the loss from change in value of the derivative liability, as such loss will not be deductible for income tax purposes.

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Business Segment and Geographic Area Information (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Segment Reporting Information [Line Items]
Other Revenue, Net	$ 168,253	$ 138,317
United States [Member]
Segment Reporting Information [Line Items]
Other Revenue, Net	117,912	74,968
Latin America [Member]
Segment Reporting Information [Line Items]
Other Revenue, Net	13,206	33,171
Canada [Member]
Segment Reporting Information [Line Items]
Other Revenue, Net	13,960	11,696
Australia & New Zealand [Member]
Segment Reporting Information [Line Items]
Other Revenue, Net	12,609	10,913
Europe [Member]
Segment Reporting Information [Line Items]
Other Revenue, Net	$ 10,566	$ 7,569

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Convertible Subordinated Debt (Details Textual) (USD $) In Thousands, except Per Share data, unless otherwise specified	1 Months Ended	3 Months Ended		12 Months Ended
	Aug. 18, 2014	Mar. 31, 2015	Mar. 31, 2014	Jun. 03, 2011
Debt Instrument [Line Items]
Debt Instrument, Convertible, Conversion Price		$ 3.86
Convertible Subordinated Debt		$ 4,000
Unrealized Gain (Loss) on Derivatives		996	429
Accounts Payable, Interest-bearing		962
Related Party Loan Monthly Installment Upon Disagreement		197	141
Related Party Loan Effective Interest Rate Upon Disagreement		3.50%
Related Party Loan Interest Rate Basis Upon Disagreement		3.74%
Amortization Of Intangible Assets		80	80
Stock Issued During Period, Value, Conversion of Convertible Securities, Net of Adjustments	1,507
Debt Instrument, Convertible, Carrying Amount of Equity Component	916
Gains (Losses) on Extinguishment of Debt	164
Embedded Derivative Financial Instruments [Member]
Debt Instrument [Line Items]
Debt Instrument, Convertible, Carrying Amount of Equity Component	427
Common Stock [Member]
Debt Instrument [Line Items]
Convertible Subordinated Debt	1,000
Pt Alumindo [Member]
Debt Instrument [Line Items]
Due from Affiliates		10,000
Convertible Senior Subordinated Notes [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate During Period				10.00%
Debt Instrument, Convertible, Conversion Ratio	254.00	259.09
Debt Instrument, Convertible, Conversion Price		$ 7.00
Derivative Liability, Fair Value, Amount Not Offset Against Collateral, Total		2,829
Amortization Of Intangible Assets				12,000
Debt Instrument, Maturity Date		Jan. 01, 2016
Supply Agreement With Pt. Alumindo [Member]
Debt Instrument [Line Items]
Related Party Loan Monthly Installment		278
Related Party Loan Monthly Installment Upon Disagreement		$ 556

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Condensed Consolidated Statements of Comprehensive Income (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Net income	$ 1,655	$ 808
Other comprehensive (loss)/income before tax
Foreign currency translation adjustments	(385)	6
Decrease in value of interest rate swap liability	0	13
Other comprehensive (loss)/income before tax	(385)	19
Income tax related to components of other comprehensive (loss)/income	0	(5)
Other comprehensive (loss)/income, net of tax	(385)	14
Comprehensive income	$ 1,270	$ 822

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Newly Effective Accounting Pronouncements

3 Months Ended

Mar. 31, 2015

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

New Accounting Pronouncements and Changes in Accounting Principles [Text Block]

2. Newly Effective Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (FASB) issued new accounting guidance, Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers, on revenue recognition. The new standard provides for a single five-step model to be applied to all revenue contracts with customers as well as requires additional financial statement disclosures that will enable users to understand the nature, amount, timing and uncertainty of revenue and cash flows relating to customer contracts. Companies have an option to use either a retrospective approach or cumulative effect adjustment approach to implement the standard. There is no option for early adoption. For public entities, this ASU is effective for fiscal years and interim periods within those years beginning after December 15, 2016. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements.

In April 2015, the Financial Accounting Standards Board (“FASB”) issued accounting guidance, Accounting Standards Update (“ASU”) No. 2015-03, Simplifying the Presentation of Debt Issuance Costs. The guidance requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability, consistent with the presentation of debt discounts. The guidance will be effective for fiscal years beginning after December 15, 2015. The Company does not believe that the new standard will have a material impact on its consolidated financial statements.

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Commitments

3 Months Ended

Mar. 31, 2015

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

19. Commitments

The Company had $40,547 in outstanding letters of credit to certain of its suppliers at March 31, 2015 and $36,586 at December 31, 2014.

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Treasury Stock (Details Textual) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Jul. 22, 2008
Equity, Class of Treasury Stock [Line Items]
Stock Repurchase Program, Number of Shares Authorized to be Repurchased			2,000
Treasury stock acquired	$ 741
Repurchase One [Member]
Equity, Class of Treasury Stock [Line Items]
Treasury stock acquired	4,379
Treasury Stock Shares Acquired Cost Method	1,502
Repurchase Two [Member]
Equity, Class of Treasury Stock [Line Items]
Treasury stock acquired	$ 741	$ 13
Treasury Stock Shares Acquired Cost Method	164	3

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Dividends

3 Months Ended

Mar. 31, 2015

Equity [Abstract]

Dividend Disclosure [Text Block]

12. Dividends

On March 19, 2015, the Company announced a cash dividend of $0.025 per share to stockholders of record at the close of business on April 3, 2015. The dividend, totaling $218, was paid on April 13, 2015. The Board of Directors will review its dividend policy on a quarterly basis, and make a determination regarding future dividends subject to the profitability and free cash flow and the other requirements of the business.