A simple method for depositing controlled amounts of nickel on steel by chemical displacement from a hot nickel chloride, boric acid solution is described. Deposits up to 30 millionths inch (0.75 micron) in thickness can be readily produced in this way. Suitable heat treatment of these deposits renders them compact and adherent and at the same time causes diffusion of the nickel and iron. Although steel coated in this way rusts readily, its surface is altered sufficiently to suggest that it will serve as a better basis for other coatings such as organic finishes, conversion coatings, ceramic enamels and perhaps for other metallic coatings. The optimum degree of alloying of the nickel and iron varies with the intended use of the product.