Grade 204 stainless steel is a cost-effective, austenitic alloy with a lower nickel content compared to other stainless steels. [1] It offers good corrosion resistance in less aggressive environments, making it suitable for both indoor and outdoor applications where extreme corrosion resistance is not essential. In conditions that involve non-corrosive media, Grade 204 provides performance similar to Grade 304, making it an economical alternative for a variety of applications at ambient temperatures. However, its chemical composition limits its suitability for environments containing chloride ions, as it may not perform well in such conditions. Under typical atmospheric or water-based environments, Grade 204 remains resistant to rust. [2]

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Source:
[1] https://www.venuswires.com/datasheet/ss-grade-204cu14597.php
[2] https://www.oshwin.com/blog/difference-between-204-and-304-stainless-steel.html