Sadly, I don't have the ruleset with me today. But with iron and and similar items I put in a 2 step process -- 1 HP to cement it and then another HP to enchant it. The enchantment of iron and similar things fades out with the change of ownership (read - kill them and take it from them) so it has to be re-enchanted. And since Iron is rather nifty, you have to cement it lest it become the chieftain or champion's new toy.
I class Iron as "magic," but that's strictly my own game. Basically, anything 'nifty' requires being cemented. Iron is definitely nifty.
Jeff
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