The Urethane Blog
August 12, 2026
Residential furniture orders show YOY growth for second straight month
August 10, 2026 | 12:07 pm CDT
Photo by Lotus Design N Print on Unsplash
HIGH POINT, N.C. — New residential furniture orders rose 13% in May compared to the prior month, and grew 8% compared to May 2025’s numbers, according to the July issue of Furniture Insights. Approximately two-thirds of participants reported increases for the month compared to a year ago.
The increase in May new orders also marks the second consecutive month of year-over-year growth, “the first such trend since June-July 2025,” said Mark Laferriere, assurance partner at Smith Leonard, the accounting and consulting firm that produces the monthly report.
Year to date, new orders are up 2% over 2025 figures
Shipments were flat compared to April, but up 1% compared to May 2025, with approximately one-half of the survey participants reporting increases compared to the year prior, according to Laferriere. Year to date, shipments are now flat with 2025.
May backlogs were up 5% compared to both April and May 2025. Receivable levels were down 4% from April and down 5% from May 2025, according to the report. Inventories were down 1% from April, but up 3% from last year, “continuing the trends from recent months,” Laferriere said.
On a seasonally adjusted basis, sales at furniture and home furnishings stores in June were flat compared to both the prior month and past year. Year to date on a non-adjusted basis, sales were down 2% compared to 2025, according to July’s Furniture Insights.
Sales at furniture and home furnishings stores in June 2026 were flat compared to both May 2026 and June 2025 on a seasonally-adjusted basis,. Year to date on a non-adjusted basis, sales were down 2.0% (down 3.1% last month).
In his comments, Laferriere said, “Tariffs, both new and old, continue to be top of mind, as new rates went into effect in late July and affected companies figure out how operations will be impacted. Consumer confidence, housing, and other economic indicators also remain mixed as uncertainty driven in part by current world events continues.”
“However,” he added, “recent financial and other reporting from public companies in the industry seems generally positive, so hopefully the positive trends will continue through the remaining summer months.”
August 11, 2026
How The UAE Has Kept Its Oil Flowing Through Hormuz
by Tyler Durden
Saturday, Aug 08, 2026 – 03:10 PM
By Tsvetana Paraskova of OilPrice.com
The United Arab Emirates has managed to boost its oil exports to pre-crisis levels as early as June, as it has kept pushing crude through the Strait of Hormuz and outside it.
The UAE, which left OPEC on May 1, has found workarounds to the blockage at the Strait of Hormuz. It has been shuttling crude through the chokepoint to load it on larger vessels outside the Strait, maximizing the use of its onshore pipeline to ship crude from the west to the east of the country, bypassing Hormuz, and shipping tankers through the Strait in dark mode.
The UAE has managed to ship over June and July the most crude oil out of the Strait of Hormuz than any other Gulf producer, according to vessel-tracking data compiled by Bloomberg.
The UAE has also issued an unprecedented number of tenders to sell cargoes of millions of barrels of crude oil in recent weeks.
At the end of July, Abu Dhabi National Oil Company ADNOC issued its seventh tender offering crude from the United Arab Emirates since the beginning of June, expecting to sell millions of barrels of oil between August and October, both from within and outside the Persian Gulf.
ADNOC was offering cargo loadings from the UAE ports Zirku and Das Island inside the Persian Gulf, as well as the port of Fujairah outside the Gulf, or via ship-to-ship transfers offshore Fujairah or Malaysia.
The UAE is estimated to have produced 4.1 million barrels per day (bpd) of crude oil in June, its highest output ever.
The UAE’s crude oil production jumped from 3.3 million bpd in May to 4.1 million bpd in June after the country left OPEC effective May 1, started raising output, and managed to sneak a lot of exports out of the Middle East even as the Strait of Hormuz was mostly blockaded for the first half of June, according to estimates by the International Energy Agency (IEA).
The UAE has sought to adapt to the closure of the Strait of Hormuz by sneaking tankers in dark mode through the Strait and increasingly offering to sell many of its crude grades for loading offshore Fujairah and at Sohar in Oman, outside the Strait.
https://www.zerohedge.com/commodities/how-uae-has-kept-its-oil-flowing-through-hormuz
August 10, 2026
ADNOC Global Expansion Accelerates After UAE’s OPEC Exit
Friday 07/August/2026 – 03:54 PM
Abu Dhabi National Oil Company is pursuing higher production, overseas acquisitions and new export infrastructure as the UAE seeks to strengthen its position in global energy markets.
The ADNOC global expansion strategy is gathering momentum following the United Arab Emirates’ departure from OPEC, giving Abu Dhabi’s state oil company greater freedom to pursue higher production, international acquisitions and new export routes as it seeks to establish itself as a major global energy player.
When the UAE left OPEC, ADNOC leadership said the decision should not be interpreted as a rebuke to Saudi Arabia or other producers. Instead, the departure was presented as reflecting confidence in the country’s capabilities and ambitions.
Three months later, ADNOC’s activities point toward an increasingly assertive strategy: maximizing domestic oil production, expanding internationally and reducing its vulnerability to disruptions around the Strait of Hormuz.
The shift represents another stage in ADNOC’s transformation from a traditionally domestically focused national oil company into an energy group with ambitions extending far beyond the UAE.
“This is a very interesting period for ADNOC,” said Robin Mills, chief executive of energy advisory firm Qamar Energy. “It’s an evolution of where they have been going over the past five or six years but the plan has been accelerated and they’re more aggressive.”
ADNOC’s Transformation Carries National Importance
ADNOC occupies an unusually important position within the UAE economy.
Oil revenues generated by the company played a central role in financing the transformation of the federation from a group of desert sheikhdoms into a modern international center for trade, investment and finance.
Its future strategy therefore carries implications extending well beyond the energy industry.
The UAE itself has adopted an increasingly assertive posture internationally during the past decade, including in diplomacy and military affairs — a reputation that has earned it the nickname “Little Sparta” in some diplomatic circles.
ADNOC’s more expansive strategy can be viewed against that broader backdrop.
The central question is whether the company can successfully capitalize on its greater freedom outside OPEC while managing the financial, geopolitical and market risks that accompany aggressive expansion.
UAE-Saudi Competition Could Reshape the Oil Market
One significant uncertainty is the future relationship between the UAE and Saudi Arabia, OPEC’s dominant producer.
Signs of possible competition have already emerged.
ADNOC increased production to a record level in June, while Saudi Arabia reduced its official crude selling prices, particularly for Asian customers.
If both countries pursue maximum production simultaneously, the resulting increase in supply could place substantial downward pressure on crude prices.
That would create a dilemma.
Higher production could help the UAE capture additional market share, but significantly lower oil prices could reduce revenues and make new investments less attractive.
Both Saudi Arabia and the UAE also need revenue as they seek to repair financial damage resulting from the Iran war.
One factor potentially providing producers with greater flexibility is the decline in global oil inventories during the conflict, which could allow additional supply to enter the market without immediately creating the degree of oversupply that might occur under different conditions.
ADNOC maintains that leaving OPEC has not altered its underlying strategy.
“We have accelerated our growth plans in the UAE and internationally to meet [growing] demand,” an ADNOC spokesperson said.
ADNOC Pushes to Maximize Oil Production
Increasing crude production has been part of ADNOC’s strategy for years rather than a policy developed only after the UAE left OPEC.
Some observers believe the accelerated approach reflects a desire to monetize the country’s petroleum resources while they retain substantial economic value amid the global energy transition.
ADNOC chief executive Sultan al-Jaber has argued that global oil demand will remain strong for longer than many forecasts suggest.
Al-Jaber, who also served as president of the United Nations climate talks in 2023, has nevertheless overseen a strategy that increasingly extends ADNOC beyond conventional crude production.
Petrochemicals are a major component of that diversification.
Demand for petroleum as a transportation fuel could eventually face greater pressure from electric vehicles and renewable energy. Petrochemicals, by contrast, are widely expected to remain an important source of hydrocarbon demand.
ADNOC has consequently invested tens of billions of dollars internationally as it seeks to establish a much larger position in the sector.
$60 Billion Petrochemicals Group Expands ADNOC’s Reach
One of the most significant steps in the ADNOC global expansion came through the combination of its petrochemicals operations with Austrian energy company OMV’s feedstock business.
The transaction created Borouge Group International AG, valued at approximately $60 billion.
ADNOC also completed its $17 billion acquisition of German polymer manufacturer Covestro at the end of last year.
Together, those deals significantly expanded the UAE company’s presence across the international chemicals and advanced-materials industries.
The company has also pursued smaller transactions.
Its distribution business recently acquired Shell fuel stations in South Africa for $1 billion, establishing a UAE retail presence in Africa’s largest economy and providing ADNOC with another platform for international expansion.
The moves suggest ADNOC is seeking to develop assets across multiple stages of the energy value chain rather than remaining primarily a producer and exporter of Abu Dhabi crude.
“If they want to build an oil company that’s a genuine international competitor, they need a proper set of international assets,” Mills said.
“They’re throwing off a huge amount of cash and it’s a potential engine to the rest of the economy because they’ve proven in the past that they can get stuff done.”
Strait of Hormuz Disruption Exposes Strategic Vulnerability
ADNOC’s ambitions are not limited to increasing production and acquiring overseas assets.
Finding secure ways to deliver oil to customers has become an immediate priority.
Since March, much of the company’s production has struggled to reach international markets because of the closure of the Strait of Hormuz, exposing a longstanding vulnerability facing Gulf energy exporters.
The waterway is one of the world’s most strategically important oil transit routes.
ADNOC already operates a pipeline capable of transporting approximately 1.5 million barrels per day overland to Fujairah on the UAE’s eastern coast, allowing crude to bypass Hormuz.
But the company is now accelerating efforts to increase that capacity.
Second Fujairah Pipeline Could Double Export Capacity
ADNOC is constructing a second pipeline to Fujairah that is expected to double the volume of crude that can be exported from the UAE’s east coast beginning in 2027.
The strategic logic is straightforward: the more oil the UAE can transport directly to the Arabian Sea side of the country, the less dependent its exports become on passage through the Strait of Hormuz.
ADNOC is also considering a pipeline for refined petroleum products.
Those plans could be expanded further if the struggle over control and security of Hormuz continues.
For the UAE, the infrastructure is therefore about more than transportation efficiency. It represents an attempt to reduce a significant geopolitical vulnerability affecting the country’s most important export industry.
Leaving OPEC Removes Production Quotas
Despite ADNOC’s growing international portfolio, maximizing domestic crude production remains central to its strategy.
The foundations of that expansion were established about a decade ago.
After Sultan al-Jaber became ADNOC chief executive in 2016, he was presented with a proposal to increase oil exploration. According to people familiar with the company’s history, he quickly became a strong advocate of the plan.
Increasing the UAE’s proven reserves would strengthen Abu Dhabi’s argument for a larger OPEC production quota, enabling ADNOC to produce more crude while remaining within the organization’s framework.
Within approximately six weeks, al-Jaber had put an expansion plan in place, according to one person involved in the discussions.
By 2018, ADNOC had established a goal of increasing oil production capacity from 3.5 million barrels per day to 5 million b/d by 2030.
The timetable was subsequently accelerated, with the company targeting 2027 instead.
Leaving OPEC fundamentally changes one constraint surrounding that ambition: the UAE is no longer required to operate within the cartel’s production quotas.
UAE Production Reaches Record Levels
ADNOC says it can already produce as much as 4.8 million barrels per day after bringing additional reserves into production.
The company has also tested production at 5 million b/d for a limited period.
According to the International Energy Agency, UAE oil production averaged approximately 4.1 million barrels per day in June, its highest level since the agency’s records began, despite disruptions caused by the war.
ADNOC says its strategy itself has not changed following the UAE’s OPEC departure.
“The UAE’s participation in international organisations is a matter for the relevant government authorities,” a company spokesperson said.
Yet analysts believe ADNOC’s production ambitions could ultimately move beyond its existing 5 million-barrel-per-day capacity target.
International Oil Majors See New Opportunities
ADNOC is already exploring projects that could raise production capacity further in cooperation with international energy companies, according to Dalia Salem, Middle East upstream analyst at Wood Mackenzie.
The UAE’s departure from OPEC could improve the economics of those investments because production would no longer be restricted by cartel quotas.
“There’s a lot more excitement from international oil companies now that they’re no longer an OPEC member,” Salem said.
“There are no restrictions and quotas limiting the rates that they have to produce and this improves project economics and makes unconventional oil more attractive to investors.”
The UAE’s partnership strategy differs notably from neighboring Saudi Arabia.
While Saudi Aramco has restricted the extent to which foreign companies can profit directly from Saudi crude production, ADNOC has expanded partnerships with international oil companies.
Foreign Oil Companies Expand UAE Production
Between 2020 and 2025, oil and gas production in the UAE by international majors including BP and TotalEnergies increased 34 percent, according to Wood Mackenzie research.
During that period, private international oil majors produced approximately 10 times more oil in the UAE than in Saudi Arabia.
Wood Mackenzie expects their role to continue expanding.
Over the next decade, international companies are projected to increase their UAE oil and gas production by another 25 percent, eventually producing approximately 1.2 million barrels per day out of projected total UAE production of 7.9 million b/d.
Those forecasts illustrate how international partnerships could become a crucial component of ADNOC’s next phase of growth.
Partnerships Have Not Been Without Friction
Relations between ADNOC and international oil companies have occasionally faced difficulties.
During the Iran war, several private-sector partners complained about aspects of ADNOC’s decision-making, including what they viewed as the company prioritizing exports of its own crude over those of its partners.
Those tensions have not eliminated international interest in UAE resources.
Access to the country’s substantial hydrocarbon reserves remains commercially attractive, and major European energy companies have continued pursuing opportunities with ADNOC.
TotalEnergies, Eni and BP are among the companies that have sought involvement in ADNOC’s gas-cap developments since the Iran war began.
ADNOC’s Post-OPEC Strategy Extends Beyond Producing More Oil
The significance of the ADNOC global expansion is therefore broader than the UAE simply producing more crude after leaving OPEC.
Three strategic priorities are emerging simultaneously: higher production, greater international reach and stronger control over export routes.
Its growing petrochemicals portfolio gives ADNOC exposure to an area of petroleum demand that could remain resilient even as transportation becomes increasingly electrified.
Its investments in pipelines to Fujairah could reduce the UAE’s dependence on the Strait of Hormuz.
Its partnerships with international oil companies could accelerate development of additional reserves and unconventional resources.
And freedom from OPEC quotas potentially allows Abu Dhabi to pursue production based more directly on its own commercial and strategic calculations.
But that freedom introduces risks of its own.
If the UAE and Saudi Arabia aggressively compete for market share, increased production could push global oil prices lower. Such a decline could undermine the economics of the very investments ADNOC is attempting to accelerate.
The company must therefore balance two potentially competing objectives: maximizing the value of the UAE’s enormous petroleum resources while maintaining prices high enough to sustain profitability and investment.
ADNOC’s transformation has been underway for years. The UAE’s departure from OPEC did not create those ambitions.
What it appears to have done is remove one of the principal constraints on how aggressively the company can pursue them.
Whether that freedom ultimately transforms ADNOC into a global energy major — or contributes to a more disruptive period of competition among Gulf producers — will depend not only on Abu Dhabi’s strategy, but also on oil demand, regional geopolitics and how Saudi Arabia responds.
August 10, 2026
Rhine River water levels critical! Covestro declares force majeure on polyether polyols
2026-08-10 08:54:07Source:ChemNet中文
Market news on August 7, 2026: Covestro Germany officially issued a force majeure notice for its polyether polyol series products. Extreme low water levels on the Rhine River impact raw material transportation to the factory, and the supply of related chemical raw materials in Europe faces disruption.
I. Core Trigger for Force Majeure: Rhine River Water Level Drops to a Historic Low
Recently, the water level of the Rhine River has continued to decline, with the water level at the Düsseldorf monitoring station hitting a new historic low. Covestro’s Dormagen plant is constrained by river water levels and has encountered sudden circumstances beyond the company’s control.
The core raw material for polyether polyols, propylene oxide (PO), is restricted by the plant’s supporting technical conditions and can only be transported by ship. Under current Rhine River water level conditions, it is no longer possible to guarantee the stable acquisition of sufficient volumes of shipped PO raw materials for the Dormagen plant, directly limiting raw material supply.
II. Factory Production Impeded, Supply Gap Difficult to Fill in the Short Term
The direct cutoff of raw material supply has led to insufficient capacity utilization for polyether polyols at the Dormagen plant, making it impossible to complete product delivery according to original contracts.
Covestro stated that at this stage, relying on means such as allocation from other group plants and external procurement cannot fully bridge the supply gap caused by this incident. As a result, related products will experience severe delivery delays, production reductions, or even supply interruptions. During the validity period of the force majeure, the company cannot guarantee product supply but will promote feasible alternative supply plans as much as possible.
III. Multiple Product Series Involved, Downstream Polyurethane Industry Chain Under Pressure
The products affected by this force majeure cover multiple mainstream product lines, including Acclaim Polyol, Arcol Polyol, Baydur, Bayfill, Bayfit, Bayflex, Baymer, Baytherm, Desmophen, and other series.
Polyether polyols are a key basic raw material for the polyurethane industry chain. The obstruction of supply from European local facilities may disrupt global polyether polyol trade flows and form an indirect impact on downstream industry chains such as foams and composite materials.
Related link: High temperatures and drought severely hit Rhine River shipping; German industrial supply chain encounters serious impact
August 9, 2026
Leggett & Platt Reports 2Q 2026 Results
Aug 06, 2026, 6:30 AM ETSomnigroup International Inc. (SGI), LEG
Q2: 2026-08-06 Earnings Summary
EPS of $0.58 beats by $0.00
| Revenue of $1.82B (-3.05% Y/Y) misses by $58.97M
CARTHAGE, Mo., Aug. 6, 2026 /PRNewswire/ —
- 2Q sales of $1.0 billion, a 6% decrease vs 2Q25, including a 5% decrease from divestitures
- 2Q EPS of $.33, 2Q adjusted1 EPS of $.39, a $.09 increase vs adjusted1 2Q25 EPS
President and CEO Karl Glassman commented, “We are pleased with how our teams managed through a challenging environment in the second quarter. Our employees remained focused on disciplined execution and cost management which, along with favorable items that we do not expect to repeat in future quarters, contributed to improved adjusted earnings.
“Bedding industry conditions remain challenged both by sluggish consumer activity and continued consolidations and bankruptcies across the value chain. We estimate that U.S. mattress market units declined by low double digits in the second quarter, similar to the declines we saw in the first quarter. In our Bedding Products segment, continued strong performance of our trade rod and wire business partially offset the decline from lower mattress demand.
“Across our other segments, demand remained soft in markets tied to housing and broader consumer spending as consumers were faced with additional uncertainty resulting from the war in the Middle East and higher gas prices. In Specialized Products, Automotive performed slightly below the market, which saw lower consumer demand across all regions. In Furniture, Flooring & Textile Products, growth in Textiles offset lower demand in the remaining businesses, which are more directly exposed to U.S. residential spending, leading to a slight improvement in trade sales.
“As we look forward, we remain focused on executing our strategic priorities while expecting ongoing macroeconomic headwinds to temper consumer demand across most of our businesses for the remainder of the year.
“Finally, we continue to progress towards the planned merger with Somnigroup. As previously announced, the waiting period under the HSR Antitrust Improvements Act expired in June. We anticipate the transaction to close upon satisfaction of the remaining closing conditions, including Leggett & Platt (LEG) shareholder approval at the special meeting planned for August 20th and the remaining required regulatory approvals. As previously stated, we believe this combination with a valued long–standing customer will create a leading global company – providing compelling strategic and financial value for our customers, employees, and the Leggett & Platt shareholders.”
SECOND QUARTER RESULTS
Second quarter sales were $1.0 billion, a 6% decrease versus second quarter last year
- 2025 divestitures decreased sales 5%
- Organic sales2 were down 1%
- Volume was down 4%, primarily from continued weak demand across most of our end markets, retailer merchandising changes in Adjustable Bed, and the decision during the fourth quarter of 2025 to walk away from a financially challenged customer in U.S. Spring
- Raw material-related selling price increases added 2% to sales
- Currency benefit increased sales 1%
Second quarter EBIT was $80 million, down from $90 million in second quarter 2025. Adjusted1 EBIT was $89 million, up from second quarter 2025 adjusted1 EBIT of $76 million.
- Adjusted1 EBIT increased primarily from metal margin expansion, restructuring benefit, and other favorable items, most of which are not expected to repeat in future quarters. EBIT margin was 8.0%, down from 8.5% in the second quarter of 2025, and adjusted1 EBIT margin was 8.9%, up from 7.1%.
Second quarter EPS was $.33, a $.05 decrease versus second quarter 2025 EPS of $.38. Second quarter adjusted1 EPS was $.39, up $.09 versus second quarter 2025 adjusted1 EPS of $.30.
| Second Quarter Results 1 | ||||||||||||||
| EBIT (millions) | EPS | |||||||||||||
| Bedding | Specialized | FF&T | Other | Total | ||||||||||
| 2Q26 | 2Q25 | 2Q26 | 2Q25 | 2Q26 | 2Q25 | 2Q26 | 2Q25 | 2Q26 | 2Q25 | 2Q26 | 2Q25 | |||
| Reported results | $42 | $27 | $19 | $39 | $29 | $24 | $(10) | $— | $80 | $90 | $.33 | $.38 | ||
| Adjustment items: | ||||||||||||||
| Gain on sale of real estate | (11) | (17) | — | (2) | — | — | — | — | (11) | (19) | (.06) | (.10) | ||
| Restructuring, restructuring-related, and impairment charges | 6 | 2 | 3 | 1 | 1 | 1 | — | — | 10 | 4 | .05 | .02 | ||
| Somnigroup merger costs | — | — | — | — | — | — | 10 | — | 10 | — | .07 | — | ||
| Total adjustments | (5) | (15) | 3 | (1) | 1 | 1 | 10 | — | 9 | (15) | .06 | (.08) | ||
| Adjusted results | $37 | $13 | $22 | $38 | $30 | $25 | $— | $— | $89 | $76 | $.39 | $.30 | ||
| 1 Calculations impacted by rounding | ||||||||||||||
DEBT AND CASH FLOW
- Net Debt1 was 2.6x trailing 12-month adjusted EBITDA1
- Total Debt at June 30 was $1.5 billion in three tranches of long-term bonds at $500 million each
- Operating cash flow was $46 million in the second quarter, a decrease of $38 million versus second quarter 2025, reflecting an expected larger investment in working capital and lower earnings
- Capital expenditures were $21 million
- Dividends were $7 million
- In May, Leggett & Platt’s Board of Directors declared a second quarter dividend of $.05 per share, flat versus last year’s second quarter dividend
- In July, Leggett & Platt’s Board of Directors declared a third quarter dividend of $.05 per share, flat versus last year’s third quarter dividend. The dividend will be paid on August 24, 2026.
SEGMENT RESULTS – Second Quarter 2026 (versus 2Q 2025)
Bedding Products –
- Trade sales decreased 1%
- Volume decreased 7%, primarily due to retailer merchandising changes and lower volume with a certain customer in Adjustable Bed, demand softness in U.S. and European bedding markets, and the decision during the fourth quarter of 2025 to walk away from a financially challenged customer in U.S. Spring. These declines were partially offset by higher trade rod and wire sales.
- Raw material-related selling price increases and currency benefit added 6% to sales
- EBIT increased $15 million and adjusted1 EBIT increased $24 million
- Adjusted1 EBIT increased primarily from metal margin expansion, favorable sales mix, temporary price-cost timing benefit in Specialty Foam, and restructuring benefit. These increases were partially offset by lower volume.
- We believe U.S. mattress market units were down low double digits in the second quarter
Specialized Products –
- Trade sales decreased 19%
- 2025 divestiture of Aerospace reduced sales 16%
- Volume decreased 4% from softer market demand
- Currency benefit increased sales 1%
- EBIT decreased $20 million and adjusted1 EBIT decreased $15 million
- Adjusted1 EBIT decreased primarily from earnings associated with the divested Aerospace business, currency impact, and lower volume
- Automotive volume was slightly below major market production in the quarter, driven by underperformance in Asia partially offset by outperformance in Europe and North America
Furniture, Flooring & Textile Products –
- Trade sales increased 1%
- Volume was flat with growth in Textiles offset by declines in Home Furniture, Work Furniture, and Flooring
- Raw material-related selling price increases added 1% to sales
- 2025 divestiture of a small facility in Work Furniture reduced sales <1%
- EBIT and adjusted1 EBIT increased $5 million
- Adjusted1 EBIT benefited from refunds of IEEPA tariffs that were paid during the eleven-month period they were in force. During that period, competitive pressures led to margin compression as cost increases, including tariffs, were not fully recovered through increased selling prices.
https://seekingalpha.com/pr/20609439-leggett-and-platt-reports-2q-2026-results
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