Given that water density increases with depth, would there ever be a depth where a steel boat would "float" on the heavy layer as the weight of the boat equals the desity of the water, and not sink down to the seabed ? Charlie
Water is virtually incompressible so the increase in density with depth is negligible, so the answer to your question is 'No'. The only increase in density is caused by thermal changes. Water has a maximum density at 4 degrees Celsius.
Incidentally, if such an increase in density were to happen, the steel would come to rest if the density of the water = the DENSITY of steel (not its weight).
Although water pressure increases almost linearly by about one atmosphere per 10 meters, density remains nearly constant increasing by less than 1% at a depth of 2000 meters.