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Steel-rule die, also known as cookie cutter dies, are used for cutting sheet metal and softer webs, such as plastics, wood, cork, felt, fabrics, and paperboard. The cutting surface of the die is the edge of hardened steel strips, known as steel rule.
Well, that wear happens too, but to a very little effect. The edge, at least a sharp edge of the blade is very thin piece of metal. The thinner the edge, the sharper the knife. To make a cut, the operator presses the edge against the medium, pushes or pulls, or both and the medium is cut.