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Stainless Steel: What It Is, How It’s Made, and Why It Matters

What stainless steel is made of, how it's made, and how 304 and 316 differ — explained simply, from a supplier's perspective.

H
Huron Alloys
10 August 2026
10 min read
stainless steel pipes stacked together in forklift

Stainless steel is iron alloyed with at least 10.5% chromium — and that chromium is the whole trick. It reacts with oxygen to form an invisible, self-repairing oxide film across the surface that stops rust before it starts. Everything else about the metal, from the grades you specify to the price you pay, follows from that one piece of chemistry.

This guide covers what stainless steel actually is, what goes into it, how it’s made from scrap to finished product, and how the two grades you’ll encounter most — 304 and 316 — differ in ways that matter when you’re specifying material.

What is stainless steel?

Stainless steel isn’t a single material. It’s a family of iron-based alloys that share one defining requirement: a minimum of 10.5% chromium by mass. Below that threshold the metal behaves like ordinary carbon steel and rusts. At or above it, something different happens.

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What makes stainless steel “stainless”

Chromium at the surface reacts with oxygen in air or water to form a layer of chromium oxide only a few nanometres thick — far too thin to see. This passive layer is dense, chemically stable, and tightly bonded to the metal beneath, so oxygen and moisture can’t reach the iron underneath and turn it to rust.

The passive layer repairs itselfScratch stainless steel and the exposed chromium immediately re-oxidises, sealing the damage within seconds as long as oxygen is available. This is why stainless resists corrosion in service rather than only when new — and why it fails in oxygen-starved conditions like tight crevices, under gaskets, or beneath deposits, where the layer can’t rebuild.

Add nickel and the crystal structure changes, making the alloy tougher and easier to form and weld. Add molybdenum and the passive layer becomes far more resistant to chlorides. Those two additions are essentially the difference between the grades you’ll be choosing between.

What is stainless steel made of?

Every stainless grade is a deliberate balance of elements, each doing a specific job:

ElementTypical rangeWhat it does
IronBalanceBase metal — provides strength and structure
Chromium10.5–26%Forms the passive oxide layer; the defining element
Nickel0–22%Stabilises the austenitic structure; adds ductility, toughness and weldability
Molybdenum0–7%Sharply improves resistance to chlorides and pitting
Carbon≤0.08% (≤0.03% in L grades)Adds hardness, but must stay low to avoid carbide precipitation
Manganese≤2%Deoxidises during melting; can partly substitute for nickel
NitrogenTrace–0.5%Boosts strength and pitting resistance, notably in duplex grades
Silicon, phosphorus, sulphurTraceResiduals from processing, held to tight limits

Carbon deserves a note, because it explains a designation you’ll see constantly. Between roughly 425°C and 870°C, carbon bonds with chromium at the grain boundaries and forms chromium carbides — pulling chromium out of the surrounding metal and leaving those zones with too little to maintain the passive layer. The result, called sensitisation, shows up as corrosion along weld heat-affected zones. Low-carbon “L” grades like 304L and 316L cap carbon at 0.03% specifically to prevent it, which is why they’re specified for welded assemblies.

How is stainless steel made?

Modern stainless production is a continuous chain from recycled scrap to finished mill product. Most stainless steel made today is 60–70% recycled material — the alloying elements survive remelting indefinitely, so scrap is a feedstock rather than a waste stream.

1

Melting in an electric arc furnace

Stainless scrap, ferrochrome, nickel and other ferroalloys are charged into an EAF, where graphite electrodes strike an arc and melt the charge at roughly 1,500–1,600°C. A single heat typically runs 60–100 tonnes and takes several hours. The heat number assigned here follows the material through every later step — it’s what makes mill certification traceable.

2

Decarburisation (AOD)

The molten metal transfers to an argon oxygen decarburisation vessel. Oxygen burns out excess carbon, while injected argon dilutes the carbon monoxide produced — which shifts the chemistry so carbon oxidises preferentially instead of the chromium. Without this step, removing carbon would strip out the expensive chromium along with it. AOD is why stainless became affordable at scale.

3

Final alloy adjustment

With carbon at target, the exact chemistry is trimmed — chromium, nickel, molybdenum and nitrogen adjusted to land inside the specified range for the grade being produced. Samples are analysed and corrected before the heat is released. This is the point where a heat becomes 304, 316L or a duplex grade.

4

Casting

The liquid steel is continuously cast into semi-finished shapes: slabs for flat products, blooms and billets for long products and seamless pipe. The strand solidifies as it’s withdrawn and is cut to length.

5

Hot rolling

Reheated to around 1,100–1,300°C, slabs pass through rolling stands that reduce them to plate or hot-rolled coil. Billets are rolled to bar, or pierced and elongated over a mandrel to produce seamless tube and pipe.

6

Annealing and pickling

Hot work leaves the metal stressed and covered in oxide scale. Solution annealing — heating to roughly 1,010–1,120°C then quenching rapidly — dissolves carbides back into solution and restores full corrosion resistance. Pickling in acid then strips the scale and re-passivates the surface.

7

Cold rolling and finishing

Where thinner gauges, tighter tolerances or specific surfaces are needed, material is cold rolled, re-annealed and finished — producing the 2B, No. 4 and BA finishes specified for sheet. Products are then cut, tested and certified against the applicable standard before shipping.

How pipe and tube are made

Two routes produce the pipe most industrial buyers specify, and the distinction affects both price and code compliance. Seamless pipe starts as a solid billet, pierced and rolled over a mandrel — no weld seam anywhere in the wall, which is why it’s typically required for high-pressure and high-temperature service under codes like ASME B31.3. Welded pipe is roll-formed from strip and joined with a longitudinal weld, usually more economical and entirely suitable at lower pressures. Both are covered by ASTM A312 for austenitic grades.

The five families of stainless steel

Grades are grouped by crystal structure, which determines how they behave more than the grade number does:

Austenitic — the 300 series

Chromium plus nickel. Non-magnetic, highly formable, excellent weldability, and the broadest corrosion resistance. Around 70% of all stainless produced.

  • Common grades: 304, 304L, 316, 316L, 321, 347
  • Typical use: process piping, tanks, fittings, food and pharmaceutical equipment

Ferritic — the 400 series

Chromium with little or no nickel. Magnetic, lower cost, good resistance to stress corrosion cracking, but less formable and harder to weld in thick sections.

  • Common grades: 430, 409, 439
  • Typical use: automotive exhaust, appliance panels, architectural trim

Martensitic

Higher carbon, heat-treatable to high hardness and strength, with corrosion resistance traded away for it.

  • Common grades: 410, 420, 440C
  • Typical use: valve components, pump shafts, cutlery, wear parts

Duplex

Roughly half austenite, half ferrite. Around twice the yield strength of standard austenitic grades with markedly better chloride stress-corrosion resistance, at lower nickel content.

  • Common grades: 2205, 2507 (super duplex)
  • Typical use: offshore, desalination, chemical processing, seawater systems

A fifth family, precipitation-hardening grades such as 17-4 PH, combines high strength with moderate corrosion resistance for aerospace and shafting applications. When conditions exceed what any stainless can handle — high-temperature service or aggressive acids — the next step up is nickel and exotic alloys.

304 vs 316: the comparison that matters most

These two austenitic grades account for the majority of stainless sold, and the difference between them comes down to one element.

Element304 / 304L316 / 316L
Chromium18.0–20.0%16.0–18.0%
Nickel8.0–10.5%10.0–14.0%
Molybdenum2.0–3.0%
Carbon≤0.08% (L: ≤0.03%)≤0.08% (L: ≤0.03%)
Manganese≤2.0%≤2.0%
IronBalanceBalance

Composition ranges per ASTM A240. That 2–3% molybdenum in 316 is what buys its chloride resistance — molybdenum stabilises the passive layer specifically against pitting and crevice attack, the failure modes that saltwater, de-icing salts and chloride-bearing process streams cause.

Consideration304316
Chloride resistanceModerateHigh
Relative costBaseline10–40% higher
AvailabilityWidest of any gradeBroadly stocked
StrengthComparableComparable
Best suited toGeneral industrial, water, food, architecturalMarine, chemical, pharmaceutical, coastal
A practical rule for choosingSpecify 316 wherever chlorides are present — coastal air, seawater, de-icing salt, brine, or chloride-bearing process fluids. Specify 304 everywhere else and put the savings into wall thickness or better fabrication. Paying for molybdenum you don’t need is as costly a mistake as omitting it where you do.

Forms, standards and what to specify

Mill product arrives in a handful of standard forms, each governed by its own specification. Knowing which one applies makes your RFQ far easier to quote accurately:

FormGoverning standardSpecify
PipeASTM A312NPS, schedule, seamless or welded, grade
TubeASTM A213 / A269OD, wall thickness, grade
Plate & sheetASTM A240Thickness, size, finish (2B, No. 4)
BarASTM A276 / A479Shape, dimensions, condition
Butt-weld fittingsASTM A403Size, schedule, fitting type
FlangesASTM A182Size, class, face type

Whatever the form, ask for Mill Test Reports with the shipment. An MTR documents chemical composition, mechanical properties, heat number and the applicable specification for the exact heat you received — it’s the only way to prove the material in your hands is what your drawing called for. Our guide to choosing a stainless steel pipe supplier covers what a complete MTR should contain and the documentation red flags worth watching for.

Material rarely ships in the size you need. Plate cut to profile, pipe cut to length, plate bevelled for welding — processing before delivery removes handling and scrap from your shop floor. High-definition plasma handles thick stainless plate quickly and economically, while waterjet cutting produces intricate profiles with no heat-affected zone at all — the right choice for tight tolerances or thermally sensitive parts.

Need stainless cut to spec?
Send your grade, size and quantity — we’ll confirm what’s on the shelf and quote firm pricing, usually within the hour.

Why it matters

Stainless steel earns its cost over service life rather than at purchase. It needs no coating, tolerates cleaning and sterilisation, holds strength across a wide temperature range, and is fully recyclable at end of life. In a plant where a failed spool means unplanned downtime, the difference between the right grade and a marginal one is measured in production hours, not dollars per kilogram.

The Short Version
  • 10.5% chromium minimumIt forms the self-healing passive layer that defines stainless.
  • Made from scrapEAF melting, AOD decarburisation, casting, rolling, annealing, finishing.
  • Molybdenum is the 304/316 difference2–3% is what buys chloride resistance.
  • L grades exist for weldingLow carbon prevents sensitisation at the weld.
  • Always take the MTRHeat-level traceability is your only proof of what arrived.

Frequently asked questions

Iron as the base metal, with a minimum of 10.5% chromium — the element that makes it corrosion resistant. Most grades also contain nickel for ductility and weldability, and many add molybdenum for chloride resistance. Carbon is kept low, typically at or below 0.08%, to preserve corrosion performance at welds.
Chromium reacts with oxygen to form a chromium oxide film just a few nanometres thick across the surface. This passive layer blocks moisture and oxygen from reaching the iron beneath, and it reforms on its own within seconds if scratched — provided oxygen is available.
Scrap and ferroalloys are melted in an electric arc furnace, then transferred to an AOD vessel where oxygen removes excess carbon while argon protects the chromium. The chemistry is adjusted to the target grade, continuously cast into slabs or billets, hot rolled, annealed and pickled to restore corrosion resistance, then cold rolled and finished as required.
It resists rust but isn’t immune. The passive layer can break down where oxygen can’t reach it — inside crevices, under gaskets or deposits — and chlorides attack it directly, causing pitting. Contamination from carbon steel tooling or grinding dust also causes surface staining that looks like rust. Correct grade selection and clean fabrication practice prevent most cases.
Neither is universally better — they suit different environments. 316 contains 2–3% molybdenum and handles chlorides, saltwater and aggressive chemicals far better, at 10–40% higher cost. 304 performs just as well in general industrial, water, food and architectural service where chlorides are low, at meaningfully lower cost.
Low carbon — capped at 0.03% instead of 0.08%. This prevents chromium carbides forming at grain boundaries during welding, which would otherwise leave the heat-affected zone depleted of chromium and vulnerable to corrosion. Specify L grades for welded assemblies unless your code says otherwise.
It depends on the family. Austenitic grades like 304 and 316 are essentially non-magnetic in the annealed condition, though cold working can induce slight magnetism. Ferritic and martensitic grades in the 400 series are magnetic, and duplex grades are partly so. Magnetism is not a reliable test of quality or corrosion resistance.
Decades, and often the life of the structure, when the grade matches the environment. 304 performs well in most inland outdoor exposure. Within a few kilometres of the coast or anywhere road salt is used, 316 or a duplex grade is the appropriate specification — 304 will pit in those conditions.

Huron Alloys has supplied stainless steel to Canadian industry since 1983 — 304 and 316 pipe, fittings, flanges, plate, sheet, bar and tube from stock, with plasma and waterjet cutting in-house and MTRs on every order. Tell us what you’re specifying and we’ll confirm availability and pricing.

Standards Referenced

Specifications cited in this guide. Always consult the current edition for design and compliance.

  1. ASTM A240/A240M. Standard Specification for Chromium and Chromium-Nickel Stainless Steel Plate, Sheet, and Strip for Pressure Vessels and for General Applications. ASTM International.
  2. ASTM A312/A312M. Standard Specification for Seamless, Welded, and Heavily Cold Worked Austenitic Stainless Steel Pipes. ASTM International.
  3. ASTM A276/A276M. Standard Specification for Stainless Steel Bars and Shapes. ASTM International.
  4. ASTM A403/A403M. Standard Specification for Wrought Austenitic Stainless Steel Piping Fittings. ASTM International.
  5. ASTM A182/A182M. Standard Specification for Forged or Rolled Alloy and Stainless Steel Pipe Flanges, Forged Fittings, and Valves and Parts for High-Temperature Service. ASTM International.
  6. EN 10088-1. Stainless steels — List of stainless steels. European Committee for Standardization.
  7. ASME B31.3. Process Piping. The American Society of Mechanical Engineers.

Reference list current as of publication. Standards are subject to revision — verify the latest editions for critical applications.

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HA
Written by
Huron Alloys

Huron Alloys has supplied Canadian industry with stainless steel, aluminum, chrome moly and nickel alloys since 1983. We write about grades, specifications and certifications from a distributor's perspective — general guidance, not engineering advice. Always verify current standards and confirm material suitability for your application.

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