A chromium-nickel austenitic stainless steel having improved machinability resulting from low carbon and nitrogen contents, along with a high manganese to sulfur ratio. The composition of the steel consists essentially of, in weight percent, carbon plus nitrogen up to 0.060, preferably up to 0.049, and most preferred up to 0.032, chromium 16 to 30, preferred 17 to 19, nickel 5 to 26, preferred 6 to 14, sulfur 0.25 to 0.45, manganese over 2 to about 7 and at least about eight times the sulfur content, balance iron and incidental impurities.