Dragon's Flame, Magical?

[Legate of Amon Lanc]

Let me answer to you with a question.

What do you imagine under the term "magical"?

It is necessary for anyone who ventures further into the realms of Arda to throw away all his images of "magic" from other fantasy books, films, games (the latter mainly) etc. because magic in Middle-Earth... well, if you ask me, I'd say that it's better to say that there is no magic in Middle-Earth at all, it is at least closer to truth than coming here with the idea of magic one brings in from elsewhere.

Galadriel (to Sam; about her mirror):

For this is what your folk would call magic, I believe, though I do not understand clearly what they mean; and they seem also to use the same word of the deceits of the Enemy. But this, if you will, is the magic of Galadriel.

Lórien elves on Elf-cloaks:

"Are these magic cloaks?" asked Pippin, looking at them with wonder.
"I do not know what you mean by that," answered the leader of the Elves. "They are fair garments, and the web is good, for it was made in this land. They are elvish robes certainly, if that is what you mean."

The Elf is obviously confused and does not know what Pippin is asking about; and I think his stance is pretty much the same now as mine towards your question. So if you ask this way, yes, the dragon fire was magic and the dwarven armours, likewise, were magic. Relatively spoken.