There are two grades of 316. There is the common or garden variety and there is 316L. The L denotes a lower carbon content.
What makes stainless steel "stainless" is the chromium content of the steel. If the steel is heated to between about 250 – 530 degC. (casting, welding etc) for any length of time, the chromium combines with the carbon to form chromium carbide. This depletes local areas of the protective chromium and the steel rusts! (Sensitization)
316L contains the lower carbon content. As such it sensitizes the steel to a lesser extent and the corrosion resistant quality of the steel is not compromised.
316 is fine for general use (cutlery etc) but for more aggressive marine applications it's 316L.
But be prepared to pay more for it!
This is not a case of defective materials, it's probably a misunderstanding between customer and supplier.
Keith
PS if you want to create rust spots on stainless steel knives, braze the blade to the handle with a low silver content (cheaper) alloy and use oxy-acetylene. Seldom fails!
Edited By Keith Hale on 04/07/2022 11:58:04