# Stainless Steel Scrap Price: SS 304 vs 316 vs 202, Identification and Rates

> How stainless steel scrap is graded and priced in India, the difference between SS 304, 316, 202 and 400-series, simple identification tests, why nickel and molybdenum drive value, and tips to sell SS scrap for more.

Source: https://kabadi24.com/blog/stainless-steel-scrap-304-316.html  
Publisher: Kabadi24 (B2B scrap marketplace, HQ Ramnagar, Varanasi, India) · Updated: 2026-10-21

## Quick answer & key takeaways

- Stainless steel scrap value depends mainly on nickel, chromium and molybdenum content.
- SS 316 is generally worth more than SS 304, which is worth more than 200-series and 400-series.
- Mixing grades pulls the whole lot down to the lowest grade's price.
- A magnet test helps but is not conclusive; XRF analysis gives reliable grade identification.
- Separate solids from turnings and keep turnings clean and dry.

Stainless steel is everywhere in industry: process tanks, pipelines, food and pharma equipment, kitchen equipment, heat exchangers, fasteners and architectural fittings. When this equipment is replaced, the scrap can be worth several times the value of mild steel. But stainless is also one of the easiest scrap types to under-value, because grades look alike and are frequently mixed. This guide explains how to grade and sell stainless steel scrap well.

## What makes stainless steel valuable

Stainless steel is iron alloyed with chromium (at least about 10.5%) and, in many grades, nickel and molybdenum. Nickel and molybdenum are expensive metals traded internationally, so their content drives scrap value:

- **Nickel** improves corrosion resistance and makes austenitic grades non-magnetic.
- **Chromium** forms the protective oxide layer.
- **Molybdenum** improves resistance to pitting, especially in chloride environments.

Stainless steel melters use scrap as a cheap source of these alloying elements, so they pay according to chemistry.

## Common grades in Indian scrap

| Grade | Typical composition (approx.) | Common uses | Relative scrap value |
|---|---|---|---|
| SS 316 / 316L | 16–18% Cr, 10–14% Ni, 2–3% Mo | Pharma, chemical, marine equipment | Highest |
| SS 304 / 304L | 18–20% Cr, 8–10.5% Ni | Food, dairy, kitchen, general process | High |
| SS 310 / heat-resistant | High Cr and Ni | Furnace parts | High, specialised |
| 200-series (201, 202) | Lower Ni, higher Mn | Utensils, decorative, low-cost fittings | Medium |
| 400-series (409, 410, 430) | Cr, little or no Ni | Automotive exhausts, appliances, cutlery | Lower |

## Indicative stainless steel scrap rates (October 2026)

| Grade | Indicative ₹/kg |
|---|---|
| SS 316 solids | 125 – 140 |
| SS 304 solids | 100 – 115 |
| SS 304 turnings (clean, dry) | 85 – 95 |
| 200-series solids | 60 – 75 |
| 400-series | 40 – 55 |
| Mixed / unidentified | Priced at lowest likely grade |

These indicative bands reflect industrial lots. Stainless prices follow nickel markets closely and can move sharply.

## How to identify stainless steel grades

### Magnet test
- **304 and 316** (austenitic) are generally non-magnetic or only slightly magnetic. Cold working (bending, forming) can make them weakly magnetic.
- **400-series** is strongly magnetic.
- **200-series** is usually non-magnetic or slightly magnetic, so the magnet test cannot separate it from 304.

The magnet test is a useful first filter but not conclusive.

### Spark test
Grinding produces sparks with characteristic patterns, but this requires experience and is not precise for close grades.

### Chemical spot tests
Test kits for nickel and molybdenum can distinguish 304 from 200-series and 316 from 304. They are inexpensive and useful for regular sellers.

### XRF analysis
A handheld X-ray fluorescence analyser reads the alloy composition in seconds. Professional buyers use XRF to grade stainless accurately. Ask your buyer to test in front of you.

### Documentation
Equipment drawings, purchase records and material test certificates often state the grade. If you have them, share them.

## Why mixing destroys value

When 304 and 202 are mixed, the buyer must assume the lower nickel content and price the whole lot accordingly, or spend time sorting. Mixing 316 into 304 loses the molybdenum premium. Keep grades separate from the start.

## Solids vs turnings

**Solids** (sheets, pipes, plates, castings, equipment parts) have high yield and fetch the full grade price.

**Turnings** from machining contain cutting oil and moisture and oxidise more easily. They sell for less unless kept clean, dry and grade-separated.

## Preparing stainless scrap for sale

1. **Segregate by grade** using records, magnet tests and spot tests.
2. **Remove attachments:** Mild steel brackets, plastic, rubber gaskets and insulation.
3. **Drain and clean** equipment of process residues.
4. **Cut large equipment** to manageable size if you have the capability.
5. **Store turnings under cover** and drain oil.
6. **Label bins and bags** with grade.

## Where stainless scrap comes from

- Dairy, food processing and beverage plants.
- Pharmaceutical and chemical plants.
- Hotels, hospitals and commercial kitchens.
- Fabrication shops.
- Sugar mills and distilleries.
- Plant dismantling projects.

Process industries replacing tanks, pipelines and heat exchangers generate significant volumes of high-grade stainless scrap.

## Price drivers

- **Nickel prices** on international markets are the biggest driver.
- **Ferrochrome and molybdenum prices** matter for chromium and moly-bearing grades.
- **Domestic stainless steel demand** from construction, consumer goods and automobiles.
- **Imported stainless scrap prices** set a benchmark for Indian melters.

## Documentation and tax

Stainless steel scrap is metal scrap under GST, so the reverse charge and 2% GST TDS rules introduced in October 2024 can apply to transactions. TCS may also apply. Invoices should specify grades and HSN codes.

## A worked example: sorting a dairy plant's stainless

A dairy plant replaces process tanks, pipelines and fittings and collects about 5 tonnes of stainless scrap. Records show tanks were SS 304 and some heat-exchanger parts SS 316. Fittings and some railings came from various suppliers and are unknown.

The plant:

1. Separates tanks and pipes with records (SS 304) from heat-exchanger parts (SS 316).
2. Uses a magnet to pull out strongly magnetic items (400-series brackets and supports).
3. Uses a nickel spot test on unknown fittings to separate 304 from 200-series.
4. Removes gaskets, insulation and mild steel supports.

Result: four clean grades instead of one mixed heap. The 316 portion earns its premium, the 304 earns full 304 rates, and only the small 200-series and 400-series portions are priced lower.

## Stainless storage tips

- Keep grades in labelled bins or bays.
- Store turnings under cover and drain cutting oil.
- Do not mix stainless with mild steel; even a little MS contamination causes deductions.
- Record the source of each lot; it helps identification later.

## Stainless selling checklist

1. Identify grades using records, magnet and spot tests.
2. Confirm with XRF for high-value or uncertain lots.
3. Remove attachments and residues.
4. Separate solids from turnings.
5. Request grade-wise written quotes.
6. Weigh transparently and keep slips.


## Stainless steel glossary

- **Austenitic:** Nickel-bearing grades such as 304 and 316, generally non-magnetic.
- **Ferritic / martensitic:** 400-series grades with little or no nickel, magnetic.
- **L grades (304L, 316L):** Low-carbon versions, traded close to their standard grades.
- **Solids:** Sheets, pipes, plates and parts, as opposed to turnings.
- **XRF:** Handheld X-ray fluorescence analyser used to read alloy composition.

## Why stainless prices swing more than mild steel

Nickel is one of the most volatile industrial metals, and its price can move sharply within weeks. Because nickel content drives most of the value in 304 and 316 scrap, stainless rates follow those swings. Sellers with large lots should ask for a rate valid for a defined window and schedule lifting inside it, while regular generators may prefer a contract linked to a published nickel or stainless benchmark.


## Stainless scrap storage tips

Keep stainless grades in labelled bins, away from mild steel. Even small pieces of carbon steel mixed into a stainless lot trigger deductions, because melters must remove them or accept contamination. Store turnings under cover, drain cutting oil, and record the source of each lot so grades can be traced later. Clean, well-labelled stainless sells faster and closer to the top of the price range.

## Selling checklist

1. Identify grades from records, magnet and spot tests.
2. Confirm with XRF for high-value or uncertain lots.
3. Remove attachments and process residues.
4. Separate solids from turnings.
5. Request written, grade-wise quotes.
6. Weigh transparently and keep slips.


## Who buys stainless scrap

Stainless melters, induction furnaces producing stainless billets, foundries casting stainless parts, and traders who aggregate for export all buy stainless scrap. Melters value accurate grading most, because their furnace chemistry depends on it.

## How Kabadi24 trades stainless scrap

Kabadi24 tests stainless steel scrap with XRF and spot tests, separates grades, and quotes each grade in writing. Through our marketplace, sellers anywhere in India can list stainless solids and turnings, and stainless melters and traders can post requirements. Our on-ground teams in Varanasi and Gurugram handle inspection and lifting, with partners elsewhere.

## Conclusion

Stainless steel scrap is valuable when grades are identified and kept separate. Use magnet tests as a first step, confirm with spot tests or XRF, remove attachments, and keep turnings clean. The difference between selling "mixed SS" and graded 304 or 316 can be very large.

## Frequently asked questions

### What is the price of SS 304 scrap?

Indicatively, SS 304 solids sell for around ₹100–115 per kg and SS 316 solids around ₹125–140 per kg for industrial lots. Prices follow nickel markets.

### How can I tell SS 304 from SS 202?

Both are usually non-magnetic, so a magnet test won't separate them. Use a nickel spot test or an XRF analyser; 304 has much higher nickel content.

### Why is SS 316 worth more than SS 304?

SS 316 contains molybdenum and typically more nickel, which are valuable alloying elements for stainless melters.

### Is magnetic stainless steel scrap worth less?

Strongly magnetic stainless is usually 400-series with little nickel, so it is worth less. Slight magnetism in 304 can come from cold working.

### Can I sell stainless scrap from a dairy plant on Kabadi24?

Yes. List it on the Kabadi24 marketplace; our team can test grades and arrange lifting and payment.