On No-Load Current of a Transformer
This might help, the equivalent circuit of a low frequency power transformer: -




\$L_P\$ is the primary leakage inductance
\$R_P\$ is the primary copper loss
\$R_C\$ is the core losses due to eddy currents and hysteresis
\$L_M\$ is the magnetization inductance
\$L_S\$ is the secondary leakage inductance
\$R_S\$ is the secondary copper loss


As you should be able to see, the core loss components produce heat and not magnetization. Above image from here.