A method of manufacturing a compressed lump of metal scrap involves forming a through hole in the metal scrap instead of drilling a finished compressed lump of metal scrap to form the through hole in the compressed lump of metal scrap. Friction and stress applied to the core are minimized while the through hole is formed in the compressed lump of metal scrap, which is compressed with high density, thereby minimizing damage to the core and thus minimizing a trouble occurrence rate.