Stainless Steel Knowledge Popularization: Understanding What "Steel" Is [SMM Analysis]

Published: Dec 31, 2024 11:39
[SMM Analysis: Stainless Steel Knowledge Popularization] To understand what stainless steel is, one should first understand what "steel" is. We can try to form a word with the character "steel," and I believe 99% of people would think of the same word—steel and iron. This clearly shows the close relationship between steel and iron. Many people might think these two are the same material, but in fact, there are significant differences between them in various aspects...

Stainless Steel Knowledge Popularization

1.What Is Stainless Steel?

  To understand what stainless steel is, one must first understand what "steel" is. We can try to form a word with "steel," and I believe 99% of people would think of the same word—steel and iron. This shows the close relationship between steel and iron. Many people might think they are the same material, but in fact, there are significant differences between the two in various aspects.

  The main difference between steel and iron lies in their chemical composition, especially the carbon content. From a definitional perspective, steel refers to a general term for iron-carbon alloys with a carbon content percentage between 0.02% and 2.11%. In contrast, iron typically has a carbon content of over 2%, with pig iron having an even higher carbon content, usually between 2% and 4.3%. Comparatively, steel has advantages in strength, hardness, wear resistance, and toughness.

  Once we understand what steel is, stainless steel becomes easier to comprehend. In daily production and life, ordinary steel often fails to meet the growing material demands, necessitating a more corrosion-resistant raw material. Thus, stainless steel came into being. Stainless steel is an alloy steel with stainless and corrosion-resistant properties, primarily composed of elements such as iron, chromium, nickel, and manganese. According to the GB/T20878-2007 standard, stainless steel is defined as steel with a chromium content of at least 10.5% and a maximum carbon content of no more than 1.2%. The corrosion resistance of stainless steel depends on its alloying elements, particularly the chromium and nickel content. Chromium forms a chromium-rich oxide film (passivation film) to prevent further oxidation, while nickel enhances the steel's corrosion resistance and toughness.

2.Stainless Steel Industry Chain

  Stainless steel has a wide range of applications, from architectural structures to food processing equipment, medical instruments to daily necessities. Its corrosion resistance and aesthetic appeal make it the preferred material in many industries.

3.Classification of Stainless Steel

  Based on the proportion of various elements in stainless steel, it is categorized into grades such as the 200-series (chromium-manganese), 300-series (chromium-nickel), and 400-series (chromium). Among these, the 300-series has excellent overall performance and a wide range of applications. The main representative steel grades are 201, 304, 430, and 410.

Steel Grade

Main Applications

201

Used for applications requiring high strength, non-magnetic properties, wear resistance, and low corrosion resistance.

304

The most widely used, including household items (types 1 and 2 tableware, kitchen cabinets, indoor pipelines, water heaters, boilers, bathtubs), automotive parts (windshield wipers, mufflers, molded products), medical instruments, construction materials, chemical, food industries, agriculture, and ship components.

430

Heat-resistant appliances, burners, home appliances, type 2 tableware, kitchen sinks, external decorative materials, bolts, nuts, CD rods, and screens.

410

Blades, mechanical parts, petroleum refining equipment, bolts, nuts, pump rods, and type 1 tableware.

 

 

 

 

 

Steel Grade

Main Characteristics

201

Lower nickel content, with added manganese, nitrogen, and copper; higher strength, lower corrosion resistance, and lower cost.

304

Nickel content not less than 8%, with good corrosion resistance, heat resistance, excellent processing properties (stamping, bending, welding), no heat treatment hardening, and non-magnetic.

430

May contain no nickel, magnetic, low thermal expansion rate, good processing properties, excellent oxidation resistance, general corrosion resistance, and low cost.

410

May contain no nickel, lower corrosion resistance, and good wear resistance.

 

 

 

 

4.Steel Rolling Process:

  Hot Rolling (Steel Mill): Steel billets are heated and then passed through roughing and finishing mills. After cooling, they are coiled by a coiler. At this stage, the steel coil has a black oxide layer on the surface due to high-temperature heating, hence called "black stainless steel coil." If the coil undergoes annealing and pickling processes to remove the surface oxide layer, it becomes a "white stainless steel coil."

 

  Cold Rolling (Steel Mill or Agents, Tolling Factories): Hot-rolled coils can already be sold as products with a thickness of 3-8mm. Some are further processed into cold-rolled products for use. Cold rolling generally uses hot-rolled products with a thickness of 3-5.5mm as raw materials. The main processes include single-stand cold rolling and multi-stand cold rolling. After passing through the rolling mill, the hot-rolled product undergoes continuous annealing and pickling, followed by leveling to form finished cold-rolled stainless steel coils, typically with a thickness of 1.2-2mm.

 

5.Composition of Stainless Steel

 

Steel Grade

Nickel

Chromium

Manganese

Carbon

Silicon

Phosphorus

Nitrogen

Sulfur

201

3.5-5.5%

16.0~18.0%

5.5~7.50%

≤0.15%

≤1.00%

≤0.050%

≤0.25%

≤0.030%

304

8.0-10.5%

18.0–20.0%

≤2.00%

≤0.08%

≤1%

≤0.045%

 

≤0.030%

430

≤0.60%

16.00-18.00%

≤1.00%

≤0.12%

≤0.75%

≤0.040%

 

≤0.030%

 

Main Sources of Elements:

Nickel: Low-grade NPI (1.5%-1.7%), high-grade NPI (8%-12%)

Manganese: EMM, medium- and low-carbon ferromanganese, high-silicon SiMn alloy

Chromium: High-carbon ferrochrome

Iron: Plain carbon steel

(can be supplemented with recycled raw materials such as steel scrap or stainless steel scrap)

 

7. Frequently Asked Questions

1Q: What Is the Difference Between 2B Coil and NO.1 Coil?

  A: The main differences between 2B coil and NO.1 coil lie in their surface treatment, processing methods, applicable thickness ranges, and application fields. 2B coil has a smoother and shinier surface, with a thickness of less than 3mm, suitable for fine processing. NO.1 coil has a rougher surface, with a thickness of 3mm or more, suitable for industrial use or further processing as raw material.

2)Q: What Is the Difference Between Mill Edge and Slit Edge?  A

: The main differences between mill edge and slit edge lie in their edge treatment, dimensional accuracy, appearance quality, and performance. Slit edge plates usually have higher dimensional accuracy and better appearance, while mill edge plates retain more original characteristics.

3) Q: What Is the Difference Between J1 and J2?

  A: The difference between J1 and J2 mainly lies in their copper content. J1 has a copper content of 0.8%, making it softer and easier to process, with a relatively higher price. J2 has a copper content of 0.3%, with relatively higher hardness, more processing difficulty, and a lower price.

 

Image Sources:Search Results for Stainless Steel Hot-Rolled Coils on Baidu Image Search

                    Analysis of China's Stainless Steel Production, Apparent Consumption, and Import-Export Situation in 2018 [Chart]

                    Search Results for Stainless Steel Cold Rolling on Baidu Image Search

 

 

》Click to View SMM Stainless Steel Spot Historical Prices

》Click to View SMM Stainless Steel Industry Chain Database

 

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn
For more information on how to access our research reports, please contact:service.en@smm.cn
Related News
[SMM Analysis] Rigid Demand Remained Steady During the Peak March Season, Stainless Steel Inventory Edged Up Slightly While Destocking Pressure Persisted
Mar 26, 2026 17:36
[SMM Analysis] Rigid Demand Remained Steady During the Peak March Season, Stainless Steel Inventory Edged Up Slightly While Destocking Pressure Persisted
Read More
[SMM Analysis] Rigid Demand Remained Steady During the Peak March Season, Stainless Steel Inventory Edged Up Slightly While Destocking Pressure Persisted
[SMM Analysis] Rigid Demand Remained Steady During the Peak March Season, Stainless Steel Inventory Edged Up Slightly While Destocking Pressure Persisted
Mar 26, 2026 17:36
[SMM Stainless Steel Daily Review] News-Driven Disturbances Pushed SS Futures Higher, While Confidence in the Stainless Steel Spot Market Gradually Recovered
Mar 24, 2026 14:24
[SMM Stainless Steel Daily Review] News-Driven Disturbances Pushed SS Futures Higher, While Confidence in the Stainless Steel Spot Market Gradually Recovered
Read More
[SMM Stainless Steel Daily Review] News-Driven Disturbances Pushed SS Futures Higher, While Confidence in the Stainless Steel Spot Market Gradually Recovered
[SMM Stainless Steel Daily Review] News-Driven Disturbances Pushed SS Futures Higher, While Confidence in the Stainless Steel Spot Market Gradually Recovered
[SMM Stainless Steel Daily Review] News-Driven Disturbances Pushed SS Futures Higher to Test the Upside, Confidence in the Stainless Steel Spot Market Gradually Recovered SMM News, March 24: SS futures rose strongly. Affected by market fluctuations triggered by news of geopolitical conflict yesterday, SS futures rose sharply in the night session, and the daytime session maintained a fluctuating but relatively strong trend, closing at 14,290 yuan/mt by midday. In the spot market, boosted by the sharp rise in SS futures, market confidence somewhat recovered; although the increase in traders' spot quotations was limited, both inquiries and transactions showed signs of recovery during the week. The current market is heavily disturbed by news factors, and changes in the geopolitical conflict still need close attention. The most-traded SS futures contract strengthened and moved higher. At 10:15 a.m., SS2605 was quoted at 14,305 yuan/mt, up 125 yuan/mt from the previous trading day. Spot premiums for 304/2B in Wuxi were in the range of 115-315 yuan/mt. In the spot market, the average price of cold-rolled 201/2B coils in Wuxi rose by 50 yuan/mt; for cold-rolled trim-edge 304/2B coils, the average price in Wuxi rose by 50 yuan/mt, while the average price in Foshan was unchanged; cold-rolled 316L/2B coils in Wuxi were unchanged; for hot-rolled 316L/NO.1 coils, Wuxi quotations were unchanged; cold-rolled 430/2B coils in both Wuxi and Foshan were also unchanged. As the market entered the traditional peak consumption season of "Golden March and Silver April," although the stainless steel market ushered in a seasonal recovery window, end-use demand fell short of expectations, downstream wait-and-see sentiment gradually intensified, and the procurement side only maintained a restocking pace for rigid demand, with none of the transaction momentum typically seen in the peak season emerging. The market's view on stainless steel prices...
Mar 24, 2026 14:24
[SMM Stainless Steel Daily Review] SS Futures Fluctuated Higher, and Stainless Steel Spot Prices Followed the Upward Trend
Mar 23, 2026 13:22
[SMM Stainless Steel Daily Review] SS Futures Fluctuated Higher, and Stainless Steel Spot Prices Followed the Upward Trend
Read More
[SMM Stainless Steel Daily Review] SS Futures Fluctuated Higher, and Stainless Steel Spot Prices Followed the Upward Trend
[SMM Stainless Steel Daily Review] SS Futures Fluctuated Higher, and Stainless Steel Spot Prices Followed the Upward Trend
[SMM Stainless Steel Daily Review] SS Futures Oscillated Higher, Stainless Steel Spot Prices Rose in Tandem SMM News, March 23: SS futures oscillated higher and tested upward. Although the escalation of geopolitical conflicts in Iran weighed on the broader nonferrous futures, nickel and SS futures maintained a strong upward trend, closing at 14,140 yuan/mt by the midday break. In the spot market, agents of steel mills raised quotations, and coupled with the strong performance of SS futures, stainless steel spot prices moved higher during the day. Driven by the mentality of rush to buy amid continuous price rise and hold back amid price downturn, downstream end-users showed improved inquiry and trading activity. At present, stainless steel mills are under significant cost pressure, and the market holds strong expectations for cost support to prices. Although macro factors may limit any substantial price rise, room for a pullback is also constrained. The most-traded SS futures contract strengthened and moved higher. At 10:15 a.m., SS2605 was quoted at 14,180 yuan/mt, up 30 yuan/mt from the previous trading day. Spot premiums for 304/2B in Wuxi were in the range of 190-390 yuan/mt. In the spot market, the average price of cold-rolled 201/2B coil in Wuxi rose by 50 yuan/mt; for cold-rolled trim-edge 304/2B coil, the average price in Wuxi was flat, while that in Foshan rose by 50 yuan/mt; cold-rolled 316L/2B coil in Wuxi was unchanged; hot-rolled 316L/NO.1 coil was quoted flat in Wuxi; cold-rolled 430/2B coil in both Wuxi and Foshan was also unchanged. As the traditional September-October peak season approaches, the stainless steel market is seeing a seasonal recovery window, but end-use demand has fallen short of expectations. Wait-and-see sentiment among downstream players has gradually intensified, and proc……
Mar 23, 2026 13:22