Electric arc furnace dust (EAFD) is a solid waste generated by the steel-scrap recycling process. It mainly consists of zinc oxides (ZnO), alumina ($Al_2O_3$), iron oxides ($Fe_2O_3$), and silica ($SiO_2$). Here we report the preparation and characterization of blue ceramic pigments using EAFD powder as a starting material. $(Zn(EAFD),Co)Al_2O_4$ blue ceramic pigment was prepared by the solid-state reaction method. The color characteristics of the pigment obtained were compared with those of pure $CoAl_2O_4$. The new pigment was characterized using XRD, CIE-$L^*a^*b^*$ color-measurements, SEM, and EDX. The XRD analysis revealed that the $(Zn(EAFD),Co)Al_2O_4$ pigment was composed of mainly the spinel phase of $(Zn,Co)Al_2O_4$. The $Zn(EAFD)_{0.25}Co_{0.75}Al_2O_4$ pigments showed a vivid blue color with a $b^*$ value of -28.64 and a good glaze stability with a transparent glaze.