The primary reason is its exceptional combination of hardness, wear resistance, and strength.
Extreme Hardness & Wear Resistance: Tungsten carbide is significantly harder than tool steel. This means it can withstand the abrasive forces of punching, blanking, or forming materials like steel, copper, and composites for much longer without wearing down. This translates to longer tool life, reduced downtime for tool changes, and consistent part quality over massive production runs.
High Compressive Strength: It has an incredible ability to resist deformation under immense pressure. When a punch impacts a material, it experiences enormous compressive forces. Tungsten carbide maintains its shape and tolerances, preventing chipping, cracking, or premature failure.
Excellent Rigidity: Its stiffness reduces deflection during operation, which is critical for maintaining precise tolerances and producing clean, burr-free parts.
In short, while the initial cost is higher than steel, the superior durability and performance of tungsten carbide lead to lower cost-per-part in high-volume or demanding applications.