Ferronickel — an iron-nickel alloy typically containing less than 60% nickel — is classified under HTS Chapter 72 as a ferroalloy used in steelmaking, while unwrought nickel with higher purity falls under Chapter 75. The distinction is commercially significant because the two forms serve different end uses and carry different duty rates.

Global nickel mining and refining is concentrated in a limited number of countries, meaning that geopolitical events, export policy changes, or production disruptions in key source regions can cause rapid price and availability shifts. Importers relying on nickel for stainless steel or battery-grade applications often maintain strategic inventory buffers or multi-source procurement strategies to manage this concentration risk.