UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549



                                  SCHEDULE 13D




                    Under the Securities Exchange Act of 1934
                               (Amendment No. 2)*

                              LSB Industries, Inc.
- --------------------------------------------------------------------------------
                                (Name of Issuer)

                     Common Stock, par value $.10 per share
- --------------------------------------------------------------------------------
                         (Title of Class of Securities)

                                    502160104
- --------------------------------------------------------------------------------
                                 (CUSIP Number)

                            Louis J. Bevilacqua, Esq.
                          Cadwalader, Wickersham & Taft
                                 100 Maiden Lane
                            New York, New York 10038
                                 (212) 504-6057
- --------------------------------------------------------------------------------
(Name,  Address and Telephone Number of Person Authorized to Receive Notices and
Communications)

                                   May 5, 1998
             (Date of Event which Requires Filing of this Statement)

If the filing person has previously  filed a statement on Schedule 13G to report
the  acquisition  which is the subject of this  Schedule 13D, and is filing this
schedule because of Rule 13d-1(b)(3) or (4), check the following box |_|.

Note: Six copies of this statement, including all exhibits, should be filed with
the  Commission.  See Rule  13d-1(a) for other  parties to whom copies are to be
sent.

*The  remainder of this cover page shall be filled out for a reporting  person's
initial filing on this form with respect to the subject class of securities, and
for  any  subsequent   amendment   containing   information  which  would  alter
disclosures provided in a prior cover page.

The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the  Securities  Exchange  Act of
1934 ("Act") or otherwise  subject to the liabilities of that section of the Act
but  shall be  subject  to all other  provisions  of the Act  (however,  see the
Notes).





1       NAME OF REPORTING PERSON  Wynnefield Partners Small Cap Value L.P.
        S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
        13-3688497

- ------- ------------------------------------------------------------------------
2       CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP 
        (See Instructions)(a) |X| (b) |_|

- ------- ------------------------------------------------------------------------
3       SEC USE ONLY

- ------- ------------------------------------------------------------------------
4       SOURCE OF FUNDS (See Instructions)
        WC

- ------- ------------------------------------------------------------------------
5       CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT 
        TO ITEMS 2(d) or 2(e)  |_|

- ------- ------------------------------------------------------------------------
6       CITIZENSHIP OR PLACE OF ORGANIZATION
        Delaware

- --------------------- ------ ---------------------------------------------------
                      7      SOLE VOTING POWER
                             458,720

                      ------ ---------------------------------------------------
     NUMBER OF        8      SHARED VOTING POWER
       SHARES                0
    BENEFICIALLY
      OWNED BY
        EACH
     REPORTING        ------ ---------------------------------------------------
       PERSON         9      SOLE DISPOSITIVE POWER
        WITH                 458,720
             
                      ------ ---------------------------------------------------
                      10     SHARED DISPOSITIVE POWER
                             0

- ------- ------------------------------------------------------------------------
11      AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
        458,720

- ------- ------------------------------------------------------------------------
12      CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES 
        (See Instructions) |_|

- ------- ------------------------------------------------------------------------
13      PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
        3.6%

- ------- ------------------------------------------------------------------------
14      TYPE OF REPORTING PERSON (See Instructions)
        PN






1       NAME OF REPORTING PERSON  Wynnefield Partners Small Cap Value L.P. I
        S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
        13-3953291

- ------- ------------------------------------------------------------------------
2       CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP 
        (See Instructions)(a) |X| (b) |_|

- ------- ------------------------------------------------------------------------
3       SEC USE ONLY

- ------- ------------------------------------------------------------------------
4       SOURCE OF FUNDS (See Instructions)
        WC

- ------- ------------------------------------------------------------------------
5       CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO 
        ITEMS 2(d) or 2(e) |_|

- ------- ------------------------------------------------------------------------
6       CITIZENSHIP OR PLACE OF ORGANIZATION
        Delaware

- --------------------- ------ ---------------------------------------------------
                      7      SOLE VOTING POWER
                             308,180
                     ------ ----------------------------------------------------
    NUMBER OF        8      SHARED VOTING POWER
      SHARES                0
   BENEFICIALLY 
     OWNED BY   
       EACH          ------ ----------------------------------------------------
    REPORTING        9      SOLE DISPOSITIVE POWER
      PERSON                308,180
       WITH     
                      ------ ---------------------------------------------------
                      10     SHARED DISPOSITIVE POWER
                             0
- ------- ------------------------------------------------------------------------
11      AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
        308,180

- ------- ------------------------------------------------------------------------
12      CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES 
        (See Instructions) |_|

- ------- ------------------------------------------------------------------------
13      PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
        2.4%

- ------- ------------------------------------------------------------------------
14      TYPE OF REPORTING PERSON (See Instructions)
        PN






1       NAME OF REPORTING PERSON  Channel Partnership II L.P.
        S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
        22-3215653

- ------- ------------------------------------------------------------------------
2       CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP 
        (See Instructions)(a) |X| (b) |_|

- ------- ------------------------------------------------------------------------
3       SEC USE ONLY

- ------- ------------------------------------------------------------------------
4       SOURCE OF FUNDS (See Instructions)
        WC

- ------- ------------------------------------------------------------------------
5       CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT 
        TO ITEMS 2(d) or 2(e) |_|

- ------- ------------------------------------------------------------------------
6       CITIZENSHIP OR PLACE OF ORGANIZATION
        New York

- --------------------- ------ ---------------------------------------------------
                      7      SOLE VOTING POWER
                              24,000

                      ------ ---------------------------------------------------
    NUMBER OF         8      SHARED VOTING POWER
      SHARES                 0
   BENEFICIALLY  
     OWNED BY        ------ ----------------------------------------------------
       EACH           9      SOLE DISPOSITIVE POWER
    REPORTING                24,000
      PERSON     
       WITH          ------ ----------------------------------------------------
                      10     SHARED DISPOSITIVE POWER
                             0
- ------- ------------------------------------------------------------------------
11      AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
        24,000

- ------- ------------------------------------------------------------------------
12      CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES 
        (See Instructions) |_|

- ------- ------------------------------------------------------------------------
13      PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
        0.2%
- ------- ------------------------------------------------------------------------
14      TYPE OF REPORTING PERSON (See Instructions)
        PN






1       NAME OF REPORTING PERSON  Wynnefield Small Cap Value Offshore Fund Ltd
        S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON

- ------- ------------------------------------------------------------------------
2       CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP 
        (See Instructions)(a) |X| (b) |_|

- ------- ------------------------------------------------------------------------
3       SEC USE ONLY

- ------- ------------------------------------------------------------------------
4       SOURCE OF FUNDS (See Instructions)
        WC

- ------- ------------------------------------------------------------------------
5       CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT 
        TO ITEMS 2(d) or 2(e) |_|

- ------- ------------------------------------------------------------------------
6       CITIZENSHIP OR PLACE OF ORGANIZATION
        Cayman Islands

- --------------------- ------ ---------------------------------------------------
                      7      SOLE VOTING POWER
                             164,100

                     ------ ----------------------------------------------------
    NUMBER OF        8      SHARED VOTING POWER
      SHARES                0
   BENEFICIALLY 
     OWNED BY        ------ ----------------------------------------------------
       EACH          9      SOLE DISPOSITIVE POWER
    REPORTING               164,100
      PERSON    
       WITH          ------ ----------------------------------------------------
                      10     SHARED DISPOSITIVE POWER
                             0
- ------- ------------------------------------------------------------------------
11      AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
        164,100

- ------- ------------------------------------------------------------------------
12      CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES 
        (See Instructions) |_|

- ------- ------------------------------------------------------------------------
13      PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
        1.3%

- ------- ------------------------------------------------------------------------
14      TYPE OF REPORTING PERSON (See Instructions)
        PN






1       NAME OF REPORTING PERSON  Nelson Obus
        S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
        ###-##-####

- ------- ------------------------------------------------------------------------
2       CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP 
        (See Instructions)(a) |X| (b) |_|

- ------- ------------------------------------------------------------------------
3       SEC USE ONLY

- ------- ------------------------------------------------------------------------
4       SOURCE OF FUNDS (See Instructions)
        PF

- ------- ------------------------------------------------------------------------
5       CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT 
        TO ITEMS 2(d) or 2(e) |_|


- ------- ------------------------------------------------------------------------
6       CITIZENSHIP OR PLACE OF ORGANIZATION
        U.S.A.

- --------------------- ------ ---------------------------------------------------
                        7      SOLE VOTING POWER
                               20,000
 
                      ------ ---------------------------------------------------
    NUMBER OF           8      SHARED VOTING POWER
      SHARES                   0
   BENEFICIALLY    
     OWNED BY          ------ --------------------------------------------------
       EACH             9      SOLE DISPOSITIVE POWER
    REPORTING                  20,000
      PERSON      
       WITH             ------ -------------------------------------------------
                        10     SHARED DISPOSITIVE POWER
                               0

- ------- ------------------------------------------------------------------------
11      AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
        20,000

- ------- ------------------------------------------------------------------------
12      CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES 
        (See Instructions) |_|

- ------- ------------------------------------------------------------------------
13      PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
        0.2%

- ------- ------------------------------------------------------------------------
14      TYPE OF REPORTING PERSON (See Instructions)
        IN




     This  Amendment  No.  2 to  Schedule  13D  amends  Items  3, 5 and 7 of the
Schedule 13D, dated September 4, 1997 (the "Original  Schedule 13D"), as amended
by  Amendment  No. 1 thereto,  dated  October 17, 1997,  filed by the  Reporting
Persons  to  reflect  subsequent   purchases  of  Common  Stock  by  Wynnefield,
Wynnefield I and Wynnefield  Offshore.  Capitalized  terms not otherwise defined
herein shall have the meanings  ascribed to such terms in the Original  Schedule
13D.

Item 3.  Source and Amount of Funds or Other Consideration.

     Item 3 is amended by appending the following thereto:

     The source of the $141,939.10 used by Wynnefield to purchase its additional
33,000  shares  of Common  Stock  was its  working  capital.  The  source of the
$396,574.61  used by  Wynnefield I to purchase its  additional  93,400 shares of
Common  Stock was its  working  capital.  The source of the  $79,858.50  used by
Wynnefield Offshore to purchase its additional 18,600 shares of Common Stock was
its working capital.  No funds were borrowed by any of Wynnefield,  Wynnefield I
or Wynnefield Offshore in connection with its purchases of Common Stock.

Item 5.  Interest in Securities of the Issuer.

     Item 5(a) is amended by appending the following:

     According to the  Corporation's  Amendment  No. 1 to Annual  Report on Form
10-K for the year  ended  December  31,  1997,  as of  February  28,  1998,  the
Corporation had 12,759,226 shares of Common Stock outstanding. As of the date of
this Amendment No. 2:  Wynnefield is the  beneficial  owner of 458,720 shares of
Common  Stock,  or 3.6% of the  outstanding  Common  Stock;  Wynnefield I is the
beneficial  owner of 308,180 shares of Common Stock,  or 2.4% of the outstanding
Common Stock;  Wynnefield  Offshore is the beneficial owner of 164,100 shares of
Common Stock, or 1.3% of the outstanding Common Stock; and the Reporting Persons
are the  beneficial  owner of  985,000  shares of Common  Stock,  or 7.7% of the
outstanding Common Stock.

     Item 5(b) is amended by appending the following:

     As of the date of this  Amendment No. 1:  Wynnefield  has the sole power to
vote,  or to direct  the vote of,  458,720  shares of Common  Stock and the sole
power to dispose of, or to direct the  disposition  of, 458,720 shares of Common
Stock;  Wynnefield  I has the  sole  power to vote,  or to  direct  the vote of,
308,180  shares of Common  Stock and the sole power to dispose  of, or to direct
the disposition of, 308,180 shares of Common Stock; Wynnefield Offshore the sole
power to vote, or to direct the vote of,  164,100 shares of Common Stock and the
sole power to dispose of, or to direct the  disposition  of,  164,100  shares of
Common  Stock;  and the  Reporting  Persons  have the sole power to vote,  or to
direct the vote of, 975,000 shares of Common Stock and the sole power to dispose
of, or to direct the disposition of, 975,000 shares of Common Stock.

     Item 5(c) is amended by appending the following:


                                                No. of           Price per
Reporting Person                Date       Shares Purchased        Share  
- ----------------                ----       ----------------        -----  

Wynnefield................... 10/28/97             5,400          $4.1750
                              11/04/97            12,000           4.5500
                              12/31/97             4,800           4.1450
                              01/02/98             1,800           4.0825
                              05/04/98             5,000           4.1796
                              05/05/98             4,000           4.1629

Wynnefield I................. 10/28/97             3,600           4.1750
                              11/04/97             8,000           4.5500
                              11/06/97             2,400           4.5079
                              12/31/97             3,200           4.1450
                              01/02/98             1,200           4.0825
                              02/27/98            30,000           4.2194
                              04/30/98            10,000           4.1475
                              05/04/98             4,500           4.1802
                              05/05/98            10,000           4.2475
                              05/05/98             3,000           4.1875
                              05/06/98            17,500           4.1875

Wynnefield Offshore.......... 10/28/97             1,000           4.1750
                              11/04/97             5,000           4.5500
                              12/31/97             2,000           4.1450
                              01/02/98               600           4.0825
                              02/27/98            10,000           4.2194

All  of  the  foregoing   purchases   were  made  in  the  open  market  through
broker-dealers.

Item 7.  Material to Be Filed as Exhibits.

Exhibit 99.1 -- Joint Filing Agreement.

Exhibit 99.2 -- Letter from the  Reporting  Persons to the Chairman of the Board
and President of the Company, dated September 4, 1997.*

Exhibit 99.3 -- Letter from the  Reporting  Persons to the Board of Directors of
the Company, dated September 4, 1997.*

Exhibit 99.4 -- Letter from the  Reporting  Persons to the Special  Committee of
the Board of Directors of the Company, dated October 17, 1997.*

Exhibit 99.5 -- Letter from the  Reporting  Persons to the Chairman of the Board
and President of the Company,  dated May 18, 1998.  

- --------------- 
* Previously filed.







                                    SIGNATURE

     After  reasonable  inquiry and to the best of my  knowledge  and belief,  I
certify that the information  set forth in this statement is true,  complete and
correct.

     Date:  May 18, 1997

                                   WYNNEFIELD PARTNERS SMALL CAP VALUE L.P.

                                   By: WYNNEFIELD CAPITAL MANAGEMENT, LLC,
                                       as general partner


                                       By:  /S/ NELSON OBUS
                                            ---------------
                                              Nelson Obus
                                            Managing Member

                                   WYNNEFIELD PARTNERS SMALL CAP VALUE L.P. I

                                   By: WYNNEFIELD CAPITAL MANAGEMENT, LLC,
                                       as general partner


                                       By:  /S/ NELSON OBUS
                                            ---------------
                                              Nelson Obus
                                            Managing Member

                                   CHANNEL PARTNERSHIP II L.P. I


                                   By:   /S/ NELSON OBUS
                                         ---------------
                                           Nelson Obus
                                         General Partner

                                   WYNNEFIELD SMALL CAP VALUE OFFSHORE FUND LTD

                                   By: WYNNEFIELD CAPITAL, INC.,
                                       as general partner


                                       By: /S/ NELSON OBUS
                                           ---------------
                                             Nelson Obus
                                              President


                                           /S/ NELSON OBUS
                                           ---------------
                                               Nelson Obus

                             JOINT FILING AGREEMENT


     The  Amendment No. 2 to Schedule  13D,  relating to the common  stock,  par
value $.10 per share, of LSB Industries,  Inc.,  dated May 18, 1998, is filed on
behalf of Wynnefield  Partners Small Cap Value L.P.,  Wynnefield  Partners Small
Cap Value  L.P.  I,  Channel  Partnership  II L.P.,  Wynnefield  Small Cap Value
Offshore Fund Ltd and Nelson Obus.

                  Dated:  May 18, 1998

     Date:  May 18, 1997

                                   WYNNEFIELD PARTNERS SMALL CAP VALUE L.P.

                                   By: WYNNEFIELD CAPITAL MANAGEMENT, LLC,
                                       as general partner


                                       By:  /S/ NELSON OBUS
                                            ---------------
                                              Nelson Obus
                                            Managing Member

                                   WYNNEFIELD PARTNERS SMALL CAP VALUE L.P. I

                                   By: WYNNEFIELD CAPITAL MANAGEMENT, LLC,
                                       as general partner


                                       By:  /S/ NELSON OBUS
                                            ---------------
                                              Nelson Obus
                                            Managing Member

                                   CHANNEL PARTNERSHIP II L.P. I


                                   By:   /S/ NELSON OBUS
                                         ---------------
                                           Nelson Obus
                                         General Partner

                                   WYNNEFIELD SMALL CAP VALUE OFFSHORE FUND LTD

                                   By: WYNNEFIELD CAPITAL, INC.,
                                       as general partner


                                       By: /S/ NELSON OBUS
                                           ---------------
                                             Nelson Obus
                                              President


                                           /S/ NELSON OBUS
                                           ---------------
                                               Nelson Obus

                    WYNNEFIELD PARTNERS SMALL CAP VALUE L.P.
                   WYNNEFIELD PARTNERS SMALL CAP VALUE L.P. I
                           CHANNEL PARTNERSHIP II L.P.
                  WYNNEFIELD SMALL CAP VALUE OFFSHORE FUND LTD
                                   NELSON OBUS
                                 ONE PENN PLAZA
                                   SUITE 4720
                            NEW YORK, NEW YORK 10119



                                  May 18, 1998


Mr. Jack E. Golsen
Chairman of the Board and President
LSB Industries, Inc.
16 South Pennsylvania Avenue
Oklahoma City, OK 73107

Dear Jack:

     As my updated  Schedule 13D filing  indicates,  we have decided to increase
our holdings in LSB Industries. While we have chosen this course of action for a
number of reasons,  one of them is to protect our earlier investment in light of
what we consider continued management indecisiveness.

     I find the  candor of your  Letter to  Shareholders  dated  April 27,  1998
refreshing,  but it is  unfortunate  that it took you so long to  recognize  the
obvious--that  the  Automotive  and  Industrial  Businesses  have  been and will
continue to be destroyers and not creators of shareholder value. Furthermore, we
cannot believe that the spin-off strategy that you are exploring is viable. Both
of these operations have lost money for the last four years--in the midst of the
best economic  conditions this nation has ever  experienced.  As I argued when I
visited you almost 18 months  ago--bite the bullet,  discontinue  them and write
them down to their true value,  which I suspect is minimal.  Your  proclivity to
stretch out this painful process only further dilutes shareholder value and is a
reflection of the chronic lack of strategic  clarity which has characterized LSB
Industries  for years  and  accounts  in part for the  Company's  abysmal  stock
performance.

     On another note, I applaud the withdrawal of your proposal to obtain voting
rights for three million new shares and a 10% preferred security in exchange for
three  million  dollars.  Clearly,  the proposal was not in the interest of your
outside shareholders.







     Perhaps we could get  together in mid-June to discuss  your April 27 Letter
to  Shareholders.  I doubt the stock  price  will hold at even  these  depressed
levels  unless the  Company  embarks on a path which  truly gives it a strategic
focus.

                                   Sincerely,


     Date:  May 18, 1997

                                   WYNNEFIELD PARTNERS SMALL CAP VALUE L.P.

                                   By: WYNNEFIELD CAPITAL MANAGEMENT, LLC,
                                       as general partner


                                       By:  /S/ NELSON OBUS
                                            ---------------
                                              Nelson Obus
                                            Managing Member

                                   WYNNEFIELD PARTNERS SMALL CAP VALUE L.P. I

                                   By: WYNNEFIELD CAPITAL MANAGEMENT, LLC,
                                       as general partner


                                       By:  /S/ NELSON OBUS
                                            ---------------
                                              Nelson Obus
                                            Managing Member

                                   CHANNEL PARTNERSHIP II L.P. I


                                   By:   /S/ NELSON OBUS
                                         ---------------
                                           Nelson Obus
                                         General Partner

                                   WYNNEFIELD SMALL CAP VALUE OFFSHORE FUND LTD

                                   By: WYNNEFIELD CAPITAL, INC.,
                                       as general partner


                                       By: /S/ NELSON OBUS
                                           ---------------
                                             Nelson Obus
                                              President


                                           /S/ NELSON OBUS
                                           ---------------
                                               Nelson Obus