Bloomberg reported that copper futures declined for the second straight day on signs of slowing economic growth in China, the world’s biggest consumer of industrial metal.

The Purchasing Managers’ Index from HSBC Holdings Plc and Markit Economics showed a preliminary reading of 49.6 for May below the level of 50 separating growth and contraction driving copper down 2.3% the most in three weeks. A day earlier, the metal rose on concern that a deadly accident at the second biggest mine may crimp supplies.

Mr Edward Meir an analyst at INTL FCStone in New York said that “The weak Chinese numbers hung heavily over the metals group and seemed to be dwarfing concern about the legitimate supply bottlenecks that have cropped up in the copper complex the last few weeks. It remains to be seen if China will invest more in urbanization projects.”

Mr Richard Adkerson CEO of Freeport McMoRan Copper & Gold Inc said that it’s too early to say how long an investigation will take into a tunnel collapse that killed 28 people at the Grasberg site in Indonesia. A month ago, Rio Tinto Group suspended mining at Bingham Canyon in Utah.

Vedanta Resources Plc, controlled by billionaire Mr Anil Agarwal said that its Konkola Copper Mines unit in Zambia plans to cut 24% of the workforce. BHP Billiton Limited’s Escondida site in Chile is the largest copper mine.

Mr Cailey Barker an analyst at Numis Securities Limited said that “Supply concerns continue to offer an element of support to the metal.”