There are over 3,500 different grades of steel with more being created every year. However most steel types can be categorized as one of the following.n1.Carbon Steel – contain significant amounts of carbon in the chemical makeupn2.Alloy Steeln3.Stainless Steel – contains large amounts of chromium, nickel or molybdenumn4.Tool SteelnFor more detailed explanation of steel types, view our article on the different types of steel.