Yes, when you melt rusted Iron you get iron rich spheres, that is normal.
Thermite is still not a explosive, it does not work by shock wave to cut, it burns it's way through.
I have worked with both, I had those for toys probably long before you were born.
Can you positively identify the red chip as thermite? thermite burns completely, and is self consuming, once alight it burns until it is consumed, so I doubt that is a chip of thermite from the WTC.
The Commercial and Military grades of Thermite are black or blue iron oxide
(Fe3O4) and are a Dark Gray or Blue Black in color.
Red iron(III) oxide (Fe2O3, commonly known as rust) so that chip that is claimed to be thermite is nothing more than rust on steel or iron, they both have a tendance to do exactly that rust.
And that Chip is not the size of nano thermite.
A thermite reaction taking place on a cast iron skillet.Black or blue iron oxide (Fe3O4), produced by oxidizing iron in an oxygen-rich environment under high heat, is the most commonly used thermite oxidizing agent because it is inexpensive and easily produced. Red iron(III) oxide (Fe2O3, commonly known as rust)
Nano thermite is a mixture of ultra fine particles of aluminium and metal oxide, and can be held in a matrix to keep it from seperating, but it is a flamable, it has no explosive force, it accomplishes its tasks by extreme heat.
Thermite is a pyrotechnic composition of aluminium powder and a metal oxide which produces an aluminothermic reaction known as a thermite reaction. It is not explosive, but can create short bursts of extremely high temperatures focused on a very small target for a short period of time.
The aluminium reduces the oxide of another metal, most commonly iron oxide, because aluminium is highly combustible:
Fe2O3 + 2Al -> 2Fe + Al2O3 + Heat
The products are aluminium oxide, free elemental iron, and a large amount of heat. The reactants are commonly powdered and mixed with a binder to keep the material solid and prevent separation.