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The influence of graphite shape, pearlite content and chemical composition have been investigated to determine their effect on the machinability of compacted graphite iron (CGI). In the comparison to gray iron, the reduced sulfur content of CGI prevents the beneficial formation of a protective manganese sulfide layer on the cutting insert. This accounts for much of the difference in tool life during high speed continuous cutting. Beyond this critical mechanism, the machinability of CGI can be optimized by providing a consistent, low nodularity microstructure with a minimum of tramp elements such as titanium and chromium that form abrasive inclusions.