Varying magnetic fields make circular currents in conductors. In a transformer you wrap wire so those currents flow through the wire, and you use a metal core to conduct the magnet field into the wire.
The problem with a metal core is it a conductor so current is induced in it. The metal shorts out these currents (they flow in a circle in the metal, an Eddy current) which basically means the core will convert the magnet field to heat instead of conducting it. You can laminate the core to add insulators in the middle and prevent current from flowing in a core (because there will be an insulator in it’s circular path). another common option is grind up the metal, and mix it into a non conductive ceramic or epoxy. Then you end up with something that is 90%+ metal but it’s not conductive.
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