“Eddy Currents”, are currents induced by conductors from a changing magnetic field according to Faraday’s law of induction. Basically, a time-varying magnetic field induces an emf which causes loops of currents. They are closed-loop and perpendicular to the plane of its inducing magnetic field. The eddy currents and the resistance of the core material produces an loss.
Power Loss
Reducing Eddy Currents
To reduce eddy currents, you can layer ferromagnetic materials for the code with laminations in between them