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What qualifies a weapon as being "magical"?

I was reading up on runewords, and I read that they can not be put into magical items.

I am a fan of "Steel" and I have the runes and an appropriate weapon to craft them in. Before I potentially waste my runes though, I'd like to know what makes items magical.

Does an increased attack speed? Increased durability? Increased damage? I'm pretty sure additional elemental damage means an item is magical. What about items that grant bonuses to skills? I'd love to "Steel" a Scepter that grants some Aura bonuses for my Paladin.
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