We study the equations of flow of an electrically conductive magnetic fluid, when the fluid is subjected to the action of an external applied magnetic field. The system is formed by the incompressible Navier-Stokes equations, the magnetization relaxation equation of Bloch type and the magnetic induction equation. The system takes into account the Kelvin and Lorentz force densities. We prove the local-in-time existence of the unique strong solution to the system equipped with initial and boundary conditions. We also establish a blow-up criterion for the local strong solution.