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Stainless Steel Selection: 304 vs 316 and When to Use Each

Stop over-specifying 316 stainless steel. Learn when 304 is the right choice, when 316 is worth the premium, and the one question that makes the decision easy.

NextGen Components
October 6, 2025
7 min read
Polished stainless steel industrial components

“Just use 316 to be safe.”

We hear this constantly. And while 316 stainless steel is an excellent material, defaulting to it wastes money on applications where 304 performs identically. Understanding the actual difference between these grades—and when that difference matters—can save significant cost without sacrificing performance.

The One Question That Matters

Before diving into chemistry and specifications, here’s the decision simplified: Will this component be exposed to chlorides?

Chlorides include salt water, road salt, swimming pool chemicals, certain cleaning agents, and many industrial process fluids. If the answer is yes—or even “possibly”—specify 316. If the answer is clearly no, 304 is likely the better choice.

That’s the core of it. Everything else is nuance.

What Makes 316 Different

Both 304 and 316 are austenitic stainless steels with similar base compositions. They share approximately 18% chromium, which provides the fundamental corrosion resistance that makes stainless steel “stainless.” Both contain 8-10% nickel, which maintains the austenitic crystal structure that gives these grades their excellent formability and toughness. Both feature low carbon content to prevent sensitization during welding.

The key difference: 316 contains 2-3% molybdenum.

Molybdenum dramatically improves resistance to pitting and crevice corrosion, particularly in chloride-containing environments. This single addition justifies 316’s existence—and its 20-30% price premium.

The Chloride Problem

Chlorides are uniquely aggressive toward stainless steel. They penetrate the passive chromium oxide layer that protects stainless from corrosion, initiating pitting that can progress to perforation. What starts as a tiny pit can become a through-hole surprisingly quickly in aggressive environments.

304 handles most corrosive environments well. Mild acids, most organic chemicals, and ordinary atmospheric exposure won’t challenge it. But introduce chlorides—even in small concentrations—and 304 becomes vulnerable.

People often overlook common chloride sources. Coastal air carries salt even miles from the ocean. Road salt and de-icing chemicals attack equipment and vehicles throughout winter. Cleaning products containing bleach introduce chlorides during routine maintenance. Cooling tower water treatments, food processing brines, and swimming pool environments all create chloride exposure. Even human perspiration contains enough chlorides to cause problems on polished surfaces that are frequently touched.

When 304 Is the Right Choice

304 stainless steel isn’t a compromise—it’s the appropriate specification for the majority of applications.

In food processing environments without salt or brine, 304 serves admirably. Most food contact surfaces, preparation equipment, and processing machinery use 304 successfully. Dairy operations, brewing facilities, beverage plants, and general food manufacturing rarely require 316 unless salt or brine is involved in the process.

Architectural applications in non-coastal locations perform well with 304. Interior handrails, kitchen equipment, countertops, and architectural trim in inland locations provide years of service. The material weathers attractively and resists normal cleaning chemicals without issue.

General industrial equipment—tanks, piping, and machinery handling non-chloride chemicals, water, and most process fluids—typically specifies 304. The material’s corrosion resistance handles the majority of industrial environments at lower cost than 316.

Commercial kitchen equipment, sinks, tables, and food storage almost universally use 304. The cost savings over 316 are significant at equipment scale, and performance is identical in these environments. Similarly, fasteners and hardware in protected indoor environments get 304 specification. Bolts, nuts, screws, and brackets provide excellent corrosion resistance without 316’s premium.

When 316 Is Worth the Premium

Certain applications genuinely require 316’s enhanced chloride resistance.

Marine environments demand 316 without exception. Any component exposed to salt water or salt air—boat hardware, dock equipment, coastal architectural elements, and offshore structures—will see 304 fail. There is no substitute here.

Chemical processing equipment handling chlorides, bromides, or iodides needs 316’s protection. Pulp and paper processing with chlorine compounds, pharmaceutical manufacturing, and chemical plants often require 316 throughout their process systems.

Food processing with salt or brine benefits from 316’s enhanced corrosion resistance. Equipment handling salt, brine, or acidic food products lasts longer and requires less maintenance. The low-carbon variant (316L) is often specified for welded equipment to prevent sensitization at weld joints.

Swimming pools and water parks need 316 for all equipment exposed to chlorinated water. The combination of chlorine, heat, and moisture creates an aggressive environment that defeats 304 in months.

Outdoor coastal architecture—railings, facades, and structural elements within several miles of salt water—requires 316. Coastal environments corrode 304 surprisingly quickly, and the aesthetic damage appears long before structural failure.

Road salt exposure drives 316 specification for equipment, vehicles, and structures in winter climates. Transportation equipment and roadside infrastructure often require 316 to survive repeated salt exposure.

The L Variants: 304L and 316L

Both grades are available in low-carbon variants designated with “L.” 304L contains a maximum of 0.03% carbon compared to 0.08% for standard 304. The same relationship holds for 316L versus standard 316.

Why does this matter? During welding, carbon can migrate to grain boundaries and combine with chromium, depleting the chromium that provides corrosion resistance. This “sensitization” creates zones vulnerable to intergranular corrosion—corrosion that follows grain boundaries and can cause unexpected failure even when the surface appears sound.

Specify L grades when the component will be welded, when post-weld heat treatment isn’t possible, or when maximum corrosion resistance is required in welded joints. For non-welded applications, standard 304 and 316 perform identically to their L counterparts.

Beyond 304 and 316

While these two grades dominate, other stainless steels solve specific problems.

303 (Free-Machining) contains added sulfur for improved machinability. It machines faster and produces better surface finishes, but with slightly reduced corrosion resistance. For high-volume machined parts where cutting efficiency matters, 303 can dramatically reduce manufacturing costs.

316Ti (Titanium-Stabilized) contains titanium to prevent sensitization at high temperatures. When the component will be heated above 800°F in service—not just during welding—316Ti maintains corrosion resistance where standard 316 might sensitize.

17-4 PH (Precipitation Hardening) can be heat treated to high strength levels reaching 200 ksi yield. When both corrosion resistance and high strength are required—valve components, pump shafts, high-performance fasteners—17-4 PH offers capabilities that 304 and 316 cannot match.

Duplex Grades (2205, 2507) combine austenitic and ferritic structures for higher strength and better stress corrosion cracking resistance than 316. Demanding chemical and offshore applications specify duplex grades when 316 isn’t robust enough.

Cost Perspective

The 316 premium varies with market conditions but typically runs 20-30% over 304. On small components, this might be a few dollars. On large fabrications, it can be thousands.

Component304 Cost316 CostPremium
1” diameter rod, 6’ length$45$58+29%
48” x 96” x 0.125” sheet$380$490+29%
1000 pcs machined bushings$2,400$3,100+29%
Custom fabricated tank$8,500$11,000+29%

For applications that genuinely need 316, the premium is justified. For applications where 304 suffices, it’s waste.

Making the Call

The decision process is straightforward. If chlorides are present, specify 316. If the application is marine or coastal, specify 316. If food processing involves salt or brine, specify 316L. If swimming pool or chlorinated water exposure exists, specify 316. If road salt exposure is anticipated, specify 316. If none of these conditions apply, 304 is likely appropriate.

When in doubt, consider the consequences of corrosion failure. If failure creates safety issues or major expense, the 316 premium is cheap insurance. If failure means replacing a wear part that would have been replaced anyway, 304’s lower cost may allow for more frequent replacement while still saving money overall.

Working With NextGen Components

We stock both 304 and 316 stainless steel in various forms. Our materials database includes full specifications for both grades, and our team can help you determine which grade fits your application.

Need a specific form factor or have questions about grade selection? Contact us with your application details.

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