Incorrect in two ways. Water does not need to be blessed for baptism, any ordinary water will do, from holy water to dirty water from a muddy puddle. However, it must have the species of water, so it must not be wine, milk, or gatorade.
steam is 100% made out of the same material as water, still not of the species water.
nor ice.
now imagine some sect attempts to baptize with steam and/or ice, just to demonstrate they are "smart" to find "loophole" in the CIC :-)