PURPOSE: To improve the machinability of the austenitic stainless steel inscribed on the face without injuring its hot-workability, by letting the steel have specified composition comprising C, Si, Mn, Ni, Cr, Pb, N, S, one or more of Al, Ti, Nb, Ta, W, V, Zr and REM, and the balance being Fe.

CONSTITUTION: The free-cutting austenitic stainless steel has composition comprising C≤0.2%, Si≤2%, Mn≤5%, Ni;6W20%, Cr;12W30%, Pb;0.03W0.40%, N≤0.1%, S≤0.07%, one or more of up to 3% each of Al, Ti, Nb, Ta, W, V and Zr and PEM≤1%, and the balance being substantially Fe. The austenitic stainless steel is improved in its machinability without lowering its hot-workability. If the steel further contains one or more of Mo≤4% and Cu≤4% in addition to the composition, its corrosion resistance is improved.