Induction operates on all metals depending on frequency. You can melt ferrous metals (iron & steel), as well as aluminum, copper, bronze, titanium....etc. The same principle is used on induction cooktops. While it may heat more on some metals at a given frequency than others, I strongly doubt from what I know of induction heating that the "magnet test" on stainless steel is a valid indicator. Without testing stainless steel that a magnet will stick to, next to stainless steel that a magnet will not stick to ........ or knowing someone who actually has done this test, I would tend to regard this as highly questionable folk wisdom....
H.W.