Apparatus and method for segregating elongate cylindrical rods of undesirable alloy composition from rods having a desired alloy composition is disclosed. The apparatus includes a rod segregation table having an upper rod transport side for individually moving rods transversely in substantially parallel spaced relation across the table. A thermoelectric tester is positioned at an intermediate rod test position under the upper rod transport side of the table and includes two spaced electrodes maintained at different temperatures and being adapted and arranged to engage a rod as it is moved into the rod test position. A signal representative of the thermoelectrically induced voltage in the rod between the electrodes is generated and compared to a predetermined value. An offset drive signal is generated when the signal representative of the induced thermoelectric voltage is different from the predetermined value. A rod offset drive mechanism positioned on the table receives the offset drive signal and advances a rod longitudinally to an offset position on the table.