Novel carbon nanorods (NRs) were observed as a by-product during the purification of carbon nanotubes (NTs) produced by an are discharge process. The carbon NRs were characterized by scanning electron microscopy (SEM), transmission electron microscopy (TEM) and electron diffraction analysis. The electron diffraction data show that the graphite layers run parallel to the long axis of carbon NRs. A possible growth mechanism is discussed based on a modified Gamaly and Ebbesen model.