Complex sentence: Punches and dies are typically made of tool steel, however carbon steel is cheaper, but not as hard and is therefore used in less severe applications, it is also common to see cemented carbides used where high wear and abrasive resistance is present.
Split into simpler sentences: Punches and dies are typically made of tool steel, however cheaper (but softer) carbon steel is sometimes used in less severe applications. It is also common to see cemented carbides used where high wear and abrasive resistance is present.