Sorry - I’m a nube and not that far into the game, but a couple of times I’ve come across objects that look a bit like small icicles - but that seem like they are steaming. I found a couple in a block of ice I melted.
When ice blocks melt, I've seen them break down into small icicles that you can fuse to a weapon to get an elemental weapon. They steam because they're still melting, I think.