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Well it boils down to how the atoms jiggle around in the material. ferromagnetic, antiferromagnetic, and paramagnetic materials are made up of a bunch of magnetic atoms (the ones with half-filled electron shells found in the middle of any of the major blocks of the periodic table).
Therefore, no net magnetic field exists. Alternately, materials with some unpaired electrons will have a net magnetic field and will react more to an external field. Most materials can be classified as diamagnetic, paramagnetic or .ferromagnetic. Diamagnetic metals have a very weak and negative susceptibility to magnetic fields. Diamagnetic materials are slightly repelled by a magnetic field and the material does not retain the magnetic properties when the external field is removed.