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Cobalt HSS (HSS-E) contains 5-8% cobalt, offering excellent red hardness - it stays hard at high temperatures and suits difficult materials like stainless and alloy steel, with 2-3x the tool life of standard HSS. Standard HSS is cheaper but less wear-resistant, only suitable for soft materials like aluminum and copper or small batches. For common materials such as stainless steel and cold-rolled sheet, cobalt HSS is strongly recommended for lower overall cost.