The proper stuff is just like valve grinding paste if I remember my school days correctly (16years ago!), it's got tiny bits of grit in it to aid cutting, it's not oily as such, in fact it's quite thick and stodgy, though I'd imagine that's to prevent the paste from migrating during use, I'd imagine you could use any lubricant to aid cutting from a reduced friction point of veiw, though the paste actualy helps
cut the thread, not just lubricate
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