Analyst: There may still be room for further increases in metals and mining sector.

Against the background of a weak metal outlook and heavy debt burden, the bottom rebound of the mining industry has passed more than a decade. Matthew Murphy of BMO Capital Markets believes that this experience indicates that metals and mining have not yet reached a cyclical peak. The beginning of 2016 was a dark period for the mining industry, when metal demand seemed lifeless and mining companies were seen as value destroyers, with concerns in the market about widespread bankruptcies. Murphy said that the returns over the next decade were massive. He said that there are quite a few indicators suggesting further upside potential. He said that first of all, the industry's capital discipline is still good, and as long as governments continue to maintain massive fiscal deficits, scarcity will remain a major theme. He added that miners will generate and return significant cash flows. "Currently, the biggest risks these stocks face are cost inflation, capital misallocation, or confiscation."