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Initial settlement levels for US June propylene contract prices called for a rollover to 38.5 cents/lb for polymer-grade product and 37 cents/lb for chemical-grade product, market sources said Tuesday. 

The settlement, if accepted on a market-wide basis, is within market expectations, which recently called for a decrease of 1 cent to an increase of 1 cent/lb, sources said. 

Multiple propylene market participants -- including three buyers and one trader -- confirmed the initial settlements at that level. 

The rollover comes as spot PGP hovered closely around 37 cents/lb FD USG from mid-May to mid-June, according S&P Global Platts data. 

Market participants originally expected a decrease of 1 to 2 cents amid expectations that propylene will see additional length in the market, with sources awaiting the restart of Flint Hills Resources' propane dehydrogenation plant in Houston, Texas, sources said. The 545,000 mt/year plant began a 60-day turnaround in early April and was expected to restart in early June, sources said.